Aggregate data refers to individual data that are averaged by geographic area, by year, by service agency, or by other means. The data are collected and then compiled to form a report from many individuals within a population.

Through statistical analysis of the data we can make predictions, estimate trends, assess policies, and find average values for some factor within the population of interest. Aggregate data is widely used, but it also has some limitations, including drawing inaccurate inferences and false conclusions.

Air pollution is contamination of the indoor or outdoor environment by any chemical, physical or biological agent that modifies the natural characteristics of the atmosphere.

Air quality is closely linked to the earth’s climate and ecosystems globally. Many of the drivers of air pollution (i.e. combustion of fossil fuels) are also sources of greenhouse gas emissions.

Source: World Health Organization (WHO)

Alternative fuel is a type of motor energy other than the conventional fuels petrol and diesel.

Alternative fuels include electricity, LPG, natural gas (NGL or CNG), alcohols, mixtures of alcohols with other fuels, hydrogen, biofuels (such as biodiesel), etc. (This list is not exhaustive.)

Alternative fuels do not include unleaded petrol, reformulated petrol or city (low-sulphur) diesel.

Source: Eurostat

The atmosphere is the mixture of gases that surrounds any planet; the air.

Source: Cambridge Dictionary

Average-data method estimates emissions for goods and services by collecting data on the mass (e.g., kilograms or pounds), or other relevant units of goods or services purchased and multiplying by the relevant secondary (e.g., industry average) emission factors (e.g., average emissions per unit of good or service).

Source: GHG Protocol

Avoided emissions are emission reductions that occur outside of a product’s life cycle or value chain, but as a result of the use of that product . Examples of products (goods and services) that avoid emissions include low-temperature detergents, fuel-saving tires, energy-efficient ball-bearings, and teleconferencing services. Other terms used to describe avoided emissions include climate positive, net-positive accounting, and scope 4.

Source: World Resources Institute

Beyond value chain mitigation (BVCM) is a mechanism through which companies can accelerate the global net-zero transformation by going above and beyond their science based targets.

BVCM is defined in the SBTi Corporate Net-Zero Standard as “mitigation action or investments that fall outside a company’s value chain, including activities that avoid or reduce GHG emissions, or remove and store GHGs from the atmosphere.”

Source: SBTi

Biofuels are fuels derived directly or indirectly from biomass. Biofuels used for non-energy purposes are excluded from the scope of energy statistics (for example wood used for construction or as furniture, biolubricant for engine lubrication and biobitumen used for road surface).

Biofuels can be split up into three categories:

• Solid biofuels (fuelwood, wood residues, wood pellets, animal waste, vegetal material, ...)
• Liquid biofuels (biogasoline, biodiesel, bio jet kerosene, ...)
• Biogases (from anaerobic fermentation and from thermal processes)

Solid biofuels covers solid organic, non-fossil material of biological origin (also known as biomass) which may be used as fuel for heat production or electricity generation. In energy statistics, solid biofuels is a product aggregate equal to the sum of charcoal, fuelwood, wood residues and by-products, black liquor, bagasse, animal waste, other vegetal materials and residuals and renewable fraction of industrial waste.

Biogas is a gas composed principally of methane and carbon dioxide produced by anaerobic digestion of biomass or by thermal processes from biomass, including biomass in waste. In energy statistics, biogas is a product aggregate equal to the sum of landfill gas, sewage sludge gas, other biogases from anaerobic digestion and biogases from thermal processes.

Liquid biofuels includes all liquid fuels of natural origin (e.g. produced from biomass and/or the biodegradable fraction of waste), suitable to be blended with or replace liquid fuels from fossil origin. In energy statistics, liquid biofuels is a product aggregate equal to the sum of biogasoline, biodiesels, bio jet kerosene and other liquid biofuels.

Source: Eurostat

In GHG Protocol, this category includes all upstream (i.e., cradle-to-gate) emissions from the production of capital goods* purchased or acquired by the reporting company in the reporting year. Emissions from the use of capital goods by the reporting company are accounted for in either scope 1 (e.g., for fuel use) or scope 2 (e.g., for electricity use), rather than in scope 3.

*Capital goods are final products that have an extended life and are used by the company to manufacture a product; provide a service; or sell, store, and deliver merchandise. In financial accounting, capital goods are treated as fixed assets or as plant, property, and equipment (PP&E). Examples of capital goods include equipment, machinery, buildings, facilities, and vehicles.

Source: GHG Protocol

Carbon accounting (or greenhouse gas accounting) is a framework of methods to measure and track how much greenhouse gas (GHG) an organization emits. It can also be used to track projects or actions to reduce emissions in sectors such as forestry or renewable energy. Corporations, cities and other groups use these techniques to help limit climate change. Organizations will often set an emissions baseline, create targets for reducing emissions, and track progress towards them. The accounting methods enable them to do this in a more consistent and transparent manner.
Carbon accounting solutions are essential for any company to understand where there is the most potential for emission reduction, where it can implement initiatives to reduce emissions and track the performance to quantify the impact that has been made.

Source: Wikipedia

CBAM is the EU's tool to put a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries. 

By confirming that a price has been paid for the embedded carbon emissions generated in the production of certain goods imported into the EU, the CBAM will ensure the carbon price of imports is equivalent to the carbon price of domestic production, and that the EU's climate objectives are not undermined. The CBAM is designed to be compatible with WTO-rules.

CBAM will apply in its definitive regime from 2026, while the current transitional phase lasts between 2023 and 2025. This gradual introduction of the CBAM is aligned with the phase-out of the allocation of free allowances under the EU Emissions Trading System (ETS) to support the decarbonisation of EU industry. 

CBAM simplification package: As part of the first Omnibus package on 26 February 2025, the Commission proposed a set of changes to simplify CBAM.

1. Proposal to simplify CBAM for small CBAM importers, by introducing a new CBAM de minimis threshold exemption of 50 tonnes mass. This would allow to keep around 99% of emissions still in the CBAM scope, while exempting around 90% of the importers.
2. For those importers who expect to remain in the CBAM scope, the proposed changes will also facilitate compliance with CBAM obligations. For instance, proposal to simplify the authorisation of declarants, the calculation of emissions, and the management of CBAM financial liability.
3. This will be coupled with measures making CBAM more effective, by strengthening anti-abuse provisions and developing a joint anti-circumvention strategy together with national authorities. 

Source: European Commission

The term carbon budget is used to illustrate the average amount of CO₂ per resident that may be produced in order to limit global warming to 1.5°C.
Carbon budgets offer a way to benchmark the progress of governments in meeting their climate goals.
Carbon budgets measure how much CO₂ is produced by industry, homes and all other parts of the economy to calculate by how much emissions must be cut in the future. The aim is to reach net-zero emissions – striking an equal balance between the carbon released into the atmosphere and that removed from it.

Source: World Economic Forum

A carbon credit is a tradable instrument (typically a virtual certificate) that conveys a claim to avoided GHG emissions or to the enhanced removal of GHG from the atmosphere. Credits allow claims to be transferred from an entity that generated the avoided emissions or enhanced removals to a buyer. The buyer of a carbon credit can then “retire” it to count the avoided emissions or enhanced removals towards a climate change mitigation goal.

Carbon credits are certified by either governments or independent certification bodies (aka “carbon crediting programs”). A single credit is typically denominated to represent the equivalent of one metric tonne of CO2 avoided or removed.

Source: Carbon Offset Guide

Carbon dioxide is a gas produced when an organic carbon compound (such as wood) or fossilized organic matter (such as coal, oil, or natural gas) is burned in the presence of oxygen.

Carbon dioxide is removed from the atmosphere by “sinks”, such as absorption by seawater and photosynthesis by plants and plankton. Despite comprising a small and sometimes tiny fraction of the atmosphere, many of these trace gases, including carbon dioxide, have a significant influence on Earth’s climate due to a phenomenon called the “Greenhouse Effect“. 

Source: National Oceanic & Atmospheric Administration

Carbon dioxide (CO2) is a colourless, odourless and non-poisonous gas formed by combustion of carbon and in the respiration of living organisms and is considered a greenhouse gas.

Emissions means the release of greenhouse gases and/or their precursors into the atmosphere over a specified area and period of time. Carbon dioxide emissions or CO2 emissions are emissions stemming from the burning of fossil fuels and the manufacture of cement; they include carbon dioxide produced during consumption of solid, liquid, and gas fuels as well as gas flaring.

Source: Eurostat

A carbon dioxide equivalent or CO2 equivalent, abbreviated as CO2-eq is a metric measure used to compare the emissions from various greenhouse gases on the basis of their global-warming potential (GWP), by converting amounts of other gases to the equivalent amount of carbon dioxide with the same global warming potential.

Carbon dioxide equivalents are commonly expressed as million metric tonnes of carbon dioxide equivalents, abbreviated as MMTCDE.

The carbon dioxide equivalent for a gas is derived by multiplying the tonnes of the gas by the associated GWP:

MMTCDE = (million metric tonnes of a gas) * (GWP of the gas).

For example, the GWP for methane is 25 and for nitrous oxide 298. This means that emissions of 1 million metric tonnes of methane and nitrous oxide respectively is equivalent to emissions of 25 and 298 million metric tonnes of carbon dioxide.

Source: Eurostat

The carbon footprint is the amount of carbon dioxide (CO2) emissions associated with all the activities of a person or other entity (e.g., building, corporation, country, etc.). It includes direct emissions, such as those that result from fossil-fuel combustion in manufacturing, heating, and transportation, as well as emissions required to produce the electricity associated with goods and services consumed. In addition, the carbon footprint concept also often includes the emissions of other greenhouse gases, such as methane, nitrous oxide, or chlorofluorocarbons (CFCs).

Source: Britannica

Insetting is a strategic mechanism used to scale effective nature-based solutions, enabling businesses to deliver against ambitious climate and sustainability goals and harmonise their operations with the ecosystems they depend upon.

Businesses reduce the GHG emissions of their operations, increasing carbon sequestration by re-establishing natural carbon sinks, increasing soil health, restoring local water cycles and reversing the loss of forests and biodiversity. At the same time they build climate resilience, support the livelihoods of local producers and strengthen communities.

As well as reducing emissions, insetting can also build climate resilience within a company’s supply chain and help restore vital ecosystems on which the suppliers depend. By creating synergies between climate change mitigation and adaptation in agriculture, insetting can also generate incentives and funding for climate change adaptation while enhancing farmers’ livelihoods.

Source: Insetting Platform

Also known as emissions intensity, carbon intensity is the emission rate of a given pollutant relative to the intensity of a specific activity, or an industrial production process; for example grams of carbon dioxide released per megajoule of energy produced, or the ratio of greenhouse gas emissions produced to gross domestic product (GDP). Emission intensities are used to derive estimates of air pollutant or greenhouse gas emissions based on the amount of fuel combusted, the number of animals in animal husbandry, on industrial production levels, distances traveled or similar activity data. Emission intensities may also be used to compare the environmental impact of different fuels or activities.

Carbon intensity measures the amount of greenhouse gas emissions produced per unit of economic activity or output. In transportation logistics, this is typically expressed as:
WTW CO2e g/ TEU*km (for vessels)
WTW CO2e g/ton*km (for trucks)
This means gram of CO2 equivalent per 20-foot equivalent unit (TEU) (or tons) per km.
Carbon intensity provides a relative metric that allows for meaningful comparisons across different shipments, routes, and carriers regardless of scale.

To calculate carbon intensity, the IMO uses the following formula: 
Annual Efficiency Ratio (AER) = (Annual Fuel Consumption x CO2 Emission Factor*) / (Annual Distance Sailed x Design Deadweight of the Vessel**)
*A ship’s CO2 emission factor is calculated based on the type of fuel used to power it.
**A ship’s design deadweight is the maximum amount of cargo plus crew, fuel, etc. that it can carry.

Source: Wikipedia & VesselBot

The CII determines the annual reduction factor needed to ensure continuous improvement of a ship's operational carbon intensity within a specific rating level.  The actual annual operational CII achieved must be documented and verified against the required annual operational CII. This enables the operational carbon intensity rating to be determined.

Based on a ship's CII, its carbon intensity will be rated A, B, C, D or E (where A is the best). The rating indicates a major superior, minor superior, moderate, minor inferior, or inferior performance level. The performance level will be recorded in a "Statement of Compliance" to be further elaborated in the ship's Ship Energy Efficiency Management Plan (SEEMP)

Source: International Maritime Organization (IMO)

Carbon leakage refers to the situation that may occur if, for reasons of costs related to climate policies, businesses were to transfer production to other countries with laxer emission constraints. This could lead to an increase in their total emissions. The risk of carbon leakage may be higher in certain energy-intensive industries.

The EU introduced the Carbon Border Adjustment Mechanism (CBAM) in 2023 to address this by imposing carbon pricing on imports. CBAM aims to reduce carbon leakage and incentivize global climate policy alignment to promote responsible investment. Under the EU emissions trading system (EU ETS), industrial installations considered to be at significant risk of carbon leakage receive special treatment to support their competitiveness.

Source: European Commission

Carbon markets (also known as emissions trading) are carbon pricing mechanisms enabling governments and non-state actors to trade greenhouse gas emission credits. The aims is to achieve climate targets and implement climate actions cost effectively.

There are two types of carbon markets: Compliance and voluntary. In compliance markets such as national or regional emissions trading schemes participants act in response to an obligation established by a regulatory body. In voluntary carbon markets, participants are under no formal obligation to achieve a specific target. Instead, non-state actors such as companies, cities or regions seek to voluntarily offset their emissions, for example, to achieve mitigation targets such as climate neutral, net zero emissions. The current supply of voluntary carbon credits comes mostly from private entities that develop carbon projects, or governments that develop programs certified by carbon standards that generate emission reductions and/or removals. 
Demand comes from private individuals that want to compensate for their carbon footprints, corporations with corporate sustainability targets, and other actors aiming to trade credits at a higher price to make a profit.

In a nutshell, carbon markets are trading systems in which carbon credits are sold and bought. Companies or individuals can use carbon markets to compensate for their greenhouse gas emissions by purchasing carbon credits from entities that remove or reduce greenhouse gas emissions.
One tradable carbon credit equals one tonne of carbon dioxide or the equivalent amount of a different greenhouse gas reduced, sequestered or avoided. When a credit is used to reduce, sequester, or avoid emissions, it becomes an offset and is no longer tradable.

Source: UN Environment Programme / UNDP

Carbon neutrality means having a balance between emitting carbon and absorbing carbon from the atmosphere in carbon sinks*. Removing carbon oxide from the atmosphere and then storing it is known as carbon sequestration. In order to achieve net zero emissions, all worldwide greenhouse gas (GHG) emissions will have to be counterbalanced by carbon sequestration.

*Carbon sink is any system that absorbs more carbon than it emits. The main natural carbon sinks are soil, forests and oceans. 

Source: European Parliament

Carbon offsetting is a process that allows a person, company or country  to compensate for the carbon dioxide and other greenhouse gas emissions they produce by supporting projects that reduce or remove emissions somewhere else. This means that they compensate for part of their carbon footprint by paying someone else, outside their own value chains, for the emissions reductions they claim to have achieved. They usually do this by purchasing carbon credits, each of which is supposed to represent one tonne of carbon dioxide (CO@2) or its equivalent in other greenhouse gases (CO2e).

Carbon pricing is an instrument that captures the external costs of greenhouse gas (GHG) emissions - the costs of emissions that the public pays for, such as damage to crops, health care costs from heat waves and droughts, and loss of property from flooding and sea level rise - and ties them to their sources through a price, usually in the form of a price on the carbon dioxide (CO₂) emitted.

A price on carbon helps shift the burden for the damage from GHG emissions back to those who are responsible for it and who can avoid it. Instead of dictating who should reduce emissions where and how, a carbon price provides an economic signal to emitters, and allows them to decide to either transform their activities and lower their emissions, or continue emitting and paying for their emissions. In this way, the overall environmental goal is achieved in the most flexible and least-cost way to society. Placing an adequate price on GHG emissions is of fundamental relevance to internalize the external cost of climate change in the broadest possible range of economic decision making and in setting economic incentives for clean development. It can help to mobilize the financial investments required to stimulate clean technology and market innovation, fueling new, low-carbon drivers of economic growth.

There is a growing consensus among both governments and businesses on the fundamental role of carbon pricing in the transition to a decarbonized economy. For governments, carbon pricing is one of the instruments of the climate policy package needed to reduce emissions. In most cases, it is also  a source of revenue, which is particularly important in an economic environment of budgetary constraints.

Businesses use internal carbon pricing to evaluate the impact of mandatory carbon prices on their operations and as a tool to identify potential climate risks and revenue opportunities. Finally, long-term investors use carbon pricing to analyze the potential impact of climate change policies on their investment portfolios, allowing them to reassess investment strategies and reallocate capital toward low-carbon or climate-resilient activities.

Source: World Bank

Cargo utilization measures how well the vehicle’s capacity is utilized. This metric applies to all vehicles: ships, airplanes, or trucks. It refers to the percentage of a vehicle's cargo space that is being used, expressed as a percentage of the total available capacity. A higher utilization rate indicates better utilization and can lead to increased efficiency and cost savings.

Cargo utilization can be calculated by dividing the cargo the vehicle carries by its maximum capacity.

Climate change refers to man-made (anthropogenic) climate change, that is an increase in global temperatures caused by man-made emissions of gases such as carbon dioxide and methane, known as greenhouse gases.

Source: Eurostat

A corporate carbon footprint (CCF) is a climate balance at the company level. It considers both direct and indirect greenhouse gas emissions caused by a company's activities within a business year.Therefore, CCFs are usually prepared annually.

The scope of a CCF can take into account different emission sources. These are divided into so-called scopes:
Scope 1: direct emissions from own facilities, e.g. from the combustion of natural gas.
Scope 2: Indirect emissions resulting from the production of required energy, e.g. purchased electricity or district heating.
Scope 3: other indirect emissions from operational activities, e.g. caused by purchased goods and services, commuter traffic of employees, business trips or the use of sold products.

The minimum scope of a carbon footprint should cover all relevant Scope 1 & 2 emission sources of the company. The calculation should include not only carbon dioxide emissions, but also other greenhouse gases such as, methane, nitrous oxide and nitrogen trifluoride.

Recognised standards such as ISO 14064-1 or the GHG Protocol standard can be used to prepare CCFs.

Source: SGS-Institut Fresenius

The Corporate Sustainability Due Dilligence Directive (CSDDD) introduces the obligation for companies to conduct appropriate human rights and environmental due diligence with respect to their operations, operations of their subsidiaries, and operations of their business partners in companies’ chains of activities.

The due diligence process set out in the CSDDD covers the six steps defined by the OECD Due Diligence Guidance for Responsible Business Conduct:
(1) integrating due diligence into policies and management systems,
(2) identifying and assessing adverse human rights and environmental impacts,
(3) preventing, ceasing or minimising actual and potential adverse human rights, and environmental impacts,
(4) assessing the effectiveness of measures,
(5) communicating,
(6) providing remediation.

On April 16, 2025  the Directive (EU) 2025/794 was published in the Official Journal of the European Union, changing the  implementation timelines for the CSDDD.

Source: EU

The Directive on Corporate Sustainability Reporting (CSRD) empowers the European Commission to adopt delegated and implementing acts to specify how competent authorities and market participants shall comply with the obligations laid down in the directive.

CSRD is a European Union regulation that requires companies to disclose detailed information on how their activities affect people and the environment, and how sustainability issues impact their business. It builds on and replaces the previous Non-Financial Reporting Directive (NFRD).

CSRD aims to improve transparency and consistency in sustainability reporting, enabling investors, consumers, and stakeholders to better assess a company’s ESG performance and related risks. It supports the EU’s goals under the European Green Deal and helps drive capital towards more sustainable businesses.

CSRD applies to a wide range of organizations, including:
-EU-listed companies (except very small ones)
-Large EU undertakings, regardless of listing status
-Non-EU (third-country) companies with significant EU activity (e.g., subsidiaries or branches generating €150M+ in EU revenue)
 

Source: EU

Decarbonization is the process by which countries, individuals or other entities aim to achieve zero fossil carbon existence. Typically refers to a reduction of the carbon emissions associated with electricity, industry and transport.

Source: Intergovernmental Panel on Climate Change (IPCC)

DEFRA (Department for Environment Food & Rural Affairs) - UK

Conversion factors allowing organizations and individuals to calculate greenhouse gas (GHG) emissions from a range of activities, including energy use, water consumption, waste disposal, recycling and transport activities.

Source: GHG Protocol

A digital twin is an integrated data-driven virtual representation of real-world entities and processes, with synchronized interaction at a specified frequency and fidelity.
-Digital Twins are motivated by outcomes, driven by use cases, powered by integration, built on data, enhanced by physics, guided by domain knowledge, and implemented in dependable and trustworthy IT/OT/ET systems.
-Digital Twin Systems transform business by accelerating and automating holistic understanding, continuous improvement, decision-making, and interventions through effective action.
-Digital Twin Systems are built on integrated and synchronized IT/OT/ET systems, use real-time and historical data to represent the past and present, and simulate predicted futures.
-Digital Twin Prototypes use data to model and simulate predicted futures before being integrated into IT/OT/ET Systems and before synchronization with the real-world entity or process.

Digital twin technology allows you to oversee the performance of an asset, identify potential faults, and make better-informed decisions about maintenance, performance, emissions and lifecycle.

Source: Digital Twin Consortium

Direct (greenhouse gas) emissions are emissions from sources that are owned or controlled by the reporting company. Direct emissions are included in Scope 1 of GHG Protocol.

Source: GHG Protocol

Downstream emissions are indirect GHG emissions related to sold goods and services.

Under the GHG Protocol there are seven categories of downstream emissions in Scope 3 (listed in numbers 9-15):
9. Downstream transportation and distribution
10. Processing of sold products
11. Use of sold products
12. End-of-life treatment of sold products
13. Downstream leased assets
14. Franchises
15. Investments

Source: GHG Protocol

In GHG Protocol this category includes emissions from the operation of assets that are owned by the reporting company (acting as lessor) and leased to other entities in the reporting year that are not already included in scope 1 or scope 2. This category is applicable to lessors (i.e., companies that receive payments from lessees). Companies that operate leased assets (i.e., lessees) should refer to category 8 (Upstream leased assets).

Source: GHG Protocol

In GHG Protocol this category includes emissions that occur in the reporting year from transportation and distribution of sold products in vehicles and facilities not owned or controlled by the reporting company. 

This category also includes emissions from retail and storage. Category 9 includes only emissions from transportation and distribution of products after the point of sale.
Emissions from downstream transportation and distribution can arise from transportation/storage of sold products in vehicles/facilities not owned by the reporting company. For example:
• Warehouses and distribution centers
• Retail facilities
• Air transport
• Rail transport
• Road transport
• Marine transport

Source: GHG Protocol

Emissions are the amount of gases (carbon dioxide, methane, nitrous, oxide etc) that are released into the atmosphere. These gases are contributing to the Greenhouse effect which leads to rising global temperatures and extreme weather conditions. Primary sources of these gases (especially CO2) are human activities like agriculture, industrial maufacturing and burning fossil fuels.

According to GHG protocol, company emissions are categorised into three scopes based on their source and level of control:
-Scope 1 (direct emissions) : Emissions from operations that are owned or controlled by the reporting company.
-Scope 2 (indirect energy emissions)  : Emissions from the generation of purchased or acquired electricity, steam, heating or cooling consumed by the reporting company.
-Scope 3 (value chain emissions) : All indirect emissions (not included in scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions.

In order to calclulate emissions, companies should collect Activity data ( quantities or units of goods or services purchased resulting in GHG emissions) and Emission factors (Supplier-specific cradle-to-gate emission factors for the purchased goods or services) .
GHG Protocol direct companies to collect twi types of data to calculate emissions: primary data and secondary data. 

Source: GHG Protocol

An emission intensity (also carbon intensity or C.I.) is the emission rate of a given pollutant relative to the intensity of a specific activity, or an industrial production process; for example grams of carbon dioxide released per megajoule of energy produced, or the ratio of greenhouse gas emissions produced to gross domestic product (GDP). Emission intensities are used to derive estimates of air pollutant or greenhouse gas emissions based on the amount of fuel combusted, the number of animals in animal husbandry, on industrial production levels, distances traveled or similar activity data. Emission intensities may also be used to compare the environmental impact of different fuels or activities.

Emission intensity provides an excellent and unique measure of a vessel’s and/or a voyage’s environmental efficiency by relating cargo load transferred, distance travelled, and actual CO2 emissions.

In transportation logistics, this is typically expressed as:
WTW CO2e g/ TEU*km (for vessels)
WTW CO2e g/ton*km (for trucks)
This means gram of CO2 equivalent per 20-foot equivalent unit (TEU) (or tons) per km.

Emissions intensity provides a relative metric that allows for meaningful comparisons across different shipments, routes, and carriers regardless of scale.

Source: Wikipedia & VesselBot

Emissions trading is a market-oriented approach to controlling pollution by providing economic incentives for reducing the emissions of pollutants. Also known as carbon market.

Source: Wikipedia

An emissions trading system, also known as emissions trading scheme and abbreviated as ETS, is a market mechanism that allows those bodies (such as countries, companies or manufacturing plants) which emit (release) greenhouse gases into the atmosphere, to buy and sell these emissions (as permits or allowances) amongst themselves.

Emissions mean the release of greenhouse gases and/or their precursors into the atmosphere over a set area and period of time. The European Union Emission trading system (EU ETS) is based on the idea that creating a price for carbon offers the most cost-effective way to achieve the significant cuts in global greenhouse gas emissions that are needed to prevent climate change from reaching dangerous levels.

The EU ETS is the first international trading system for carbon dioxide emissions in the world and applies not only to the EU Member States but also to the other three members of the European Economic Area – Norway, Iceland and Liechtenstein. It covers over 11 000 heavy energy-using installations (power stations & industrial plants) and airlines operating between these countries, which are collectively responsible for close to half of the EU's emissions of CO2 and 45 % of its total greenhouse gas emissions.

Source: Eurostat

In GHG Protocol this category includes emissions from the waste disposal and treatment of products sold by the reporting company (in the reporting year) at the end of their life. This  category includes the total expected end-of-life emissions from all products sold in the reporting year. 

Calculating emissions from category 12 requires assumptions about the end-of-life treatment methods used by consumers. Companies are required to report a description of the methodologies and assumptions used to calculate emissions (see chapter 11 of the Scope 3 Standard).

For sold intermediate products, companies should account for the emissions from disposing of the intermediate product at the end of its life, not the final product.

Source: GHG Protocol

ESG is a framework that assesses non-financial business practices and performance on various ethical and sustainability issues.
It refers to a set of metrics and standards used to measure an organization’s environmental and social impact and has become increasingly important in investment decision-making over the years. 

ESG is used as a basis for various regulations like, CSRD, CSDDD, NFRD and SFRD.
Environmental, refers to whether the organization is operating as a steward of the environment and covers environmental issues like climate change, greenhouse gas emissions (GHG), deforestation, biodiversity, carbon emissions, waste management and pollution.

Social refers to the impact the organization has on people, culture and communities and looks at the social impact of diversity, inclusivity, human rights and supply chains.
Governance refers to how the organization is directed and looks at corporate governance factors like executive compensation, succession planning, board management practices and shareholder rights.

Environmentally-extended input output (EEIO) models estimate energy use and/or GHG emissions resulting from the production and upstream supply chain activities of different sectors and products in an economy. The resulting EEIO emissions factors can be used to estimate cradle-to-gate GHG emissions for a given industry or product category. EEIO data are particularly useful in screening emissions sources when prioritizing data collection efforts. EEIO models are derived by allocating national GHG emissions to groups of finished products based on economic flows between industry sectors.

The output of EEIO models is typically a quantity of GHGs emitted per unit of revenue in a particular industry sector. For example, an EEIO model may estimate that the sector “paper mills” emits 1,520 tonnes CO2e per $1 million revenue, meaning that, on average, 1,520 tonnes of CO2e are emitted during all upstream supply chain activities associated with generating $1 million revenue from that sector.

The advantages of EEIO data include:
• Comprehensive coverage of the entire economy (i.e., no emissions sources are excluded from the system boundary)
• Simplicity of method and application
• Time and cost savings as data requirements are less onerous than in a process-based approach.

The disadvantages of EEIO data include:
• Broad sector averages may not represent nuances of unique processes and products, especially for nonhomogenous sectors
• Assumption of linear attribution between monetary and environmental flows provides only indicative results (i.e., EEIO models cannot distinguish between products of different monetary value within a single sector)
• Lacks specificity and accuracy of process-based approaches
• Difficult to measure and demonstrate results of reduction efforts
• EEIO databases are generally limited to a specific geographic region, (e.g., United States) and are not available in some world regions.

Source: GHG Protocol

ETA (Estimated Time of Arrival): This is a commonly used term that indicates the anticipated time when something, such as a shipment, vehicle, or person, is expected to reach its destination. 

EU Emissions Trading System is an emissions cap-and-trade system that aims to reduce greenhouse gas (GHG) emissions by setting a limit, or cap, on GHG emissions for certain sectors of the economy. The cap refers to the limit set on the total amount of GHG that can be emitted by installations and operators covered under the scope of the system. This cap is reduced annually in line with the EU’s climate target, ensuring that overall EU emissions decrease over time.
The EU ETS cap is expressed in emission allowances with one allowance giving right to emit one tonne of CO2 eq (i.e., carbon dioxide equivalent). Allowances are sold in auctions and may be traded. As the cap decreases, so does the supply of allowances to the EU carbon market.

While allowances are predominantly sold in auctions, companies receive some allowances for free. Companies may also trade allowances among themselves as needed. If an installation or operator reduces emissions, the company can either sell the spare allowances and/or keep them to use in the future. All these operations are recorded in the Union Registry.
Under the system, companies must monitor and report their emissions on a yearly basis and surrender enough allowances to fully account for their annual emissions. If these requirements are not met, heavy fines are imposed.

EU ETS in a nutshell:
-requires polluters to pay for their greenhouse gas (GHG) emissions;
-launched in 2005, it is the world’s first carbon market and among the largest ones globally;
-helps bring overall EU emissions down while generating revenues to finance the green transition;
-covers emissions from the electricity and heat generation, industrial manufacturing and aviation sectors - which account for roughly 40% of total GHG emissions in the EU;
-started covering emissions from maritime transport in 2024;
-operates in all EU countries plus Iceland, Liechtenstein and Norway, and is linked to the Swiss ETS (since 2020).

Source: EU

The EU Taxonomy is a classification system that defines criteria for economic activities that are aligned with a net zero trajectory by 2050 and the broader environmental goals other than climate.

In short, an activity is considered environmentally sustainable:

- If it makes a substantial contribution to at least one of the following environmental objectives:
- Climate change mitigation
- Climate change adaptation
- The sustainable use and protection of water and marine resources
- The transition to a circular economy
- Pollution prevention and control
- The protection and restoration of biodiversity and ecosystems
- While doing no significant harm (DNSH) to any of them.

The EU taxonomy allows financial and non-financial companies to share a common definition of economic activities that can be considered environmentally sustainable. In this way, it plays an important role in helping th EU scale up sustainable investment, by creating security for investors, protecting private investors from greenwashing, helping companies become more climate-friendly and mitigating market fragmentation.  

The Taxonomy Regulation entered into force on 12 July 2020. It includes six climate and environmental objectives, namely: (i) climate change mitigation, (ii) climate change adaptation, (iii) sustainable use and protection of water and marine resources, (iv) transition to a circular economy, (v) pollution prevention and control, (vi) protection and restoration of biodiversity and ecosystems. It also sets out four overarching conditions that an economic activity has to meet in order to qualify as environmentally sustainable. According to these, an economic activity should contribute substantially to one or more of the climate and environmental objectives, it should not significantly harm any of the other objectives, and it has to be carried out in compliance with minimum social safeguards, which are defined in the regulation. Finally, it has to comply with technical screening criteria established through delegated acts by the Commission, who is empowered to draft the actual list of environmentally sustainable activities.  

Source: European Commission

Fossil fuel is a generic term for non-renewable energy sources such as coal, coal products, natural gas, derived gas, crude oil, petroleum products and non-renewable wastes. These fuels originate from plants and animals that existed in the geological past (for example, millions of years ago). Fossil fuels can be also made by industrial processes from other fossil fuels (for example in the oil refinery, crude oil is transformed into motor gasoline).

For decades fossil fuels satisfy most of the human energy requirements. Fossil fuels are carbon-based and their combustion results in the release of carbon into the Earth's atmosphere (carbon that was stored hundreds of millions years ago). It is estimated that roughly 80% of all manmade CO2 and green-house gas emissions originate from fossil fuels combustion.

Source: Eurostat

This category includes emissions related to the production of fuels and energy purchased and consumed by the reporting company in the reporting year that are not included in scope 1 or scope 2.
Category 3 excludes emissions from the combustion of fuels or electricity consumed by the reporting company, since they are already included in scope 1 or scope 2. Scope 1 includes emissions from the combustion of fuels by sources owned or controlled by the reporting company. Scope 2 includes the emissions from the combustion of fuels to generate electricity, steam, heating, and cooling purchased and consumed by the reporting company.

This category includes emissions from four distinct activities:

a. Upstream emissions of purchased fuels: Extraction, production, and transportation of fuels consumed by the reporting company. Examples include mining of coal, refining of gasoline, transmission and distribution of natural gas, production of biofuels, etc.

b. Upstream emissions of purchased electricity: Extraction, production, and transportation of fuels consumed in the generation of electricity, steam, heating, and cooling that is consumed by the reporting company. Examples include mining of coal, refining of fuels, extraction of natural gas, etc.

c. T&D losses: Generation of electricity, steam, heating, and cooling that is consumed (i.e., lost) in a T&D system – reported by end user

d. Generation of purchased electricity that is sold to end users: Generation of electricity, steam, heating, and cooling that is purchased by the reporting company and sold to end users – reported by utility company or energy retailer.

Note: This activity is particularly relevant for utility companies that purchase wholesale electricity supplied by independent power producers for resale to their customers.

Source: GHG Protocol

The Global Logistics Emissions Council (GLEC) developed the GLEC Framework, to harmonize the calculation and reporting of logistics GHG emissions across multi-modal supply chains. This guidelinesupports implementation of ISO 14083, and can be implemented by shippers, carriers and logistics service providers. This methodology framework allows GLEC shippers, carriers and service providers to accelerate their action to reduce greenhouse gas emissions and to collectively meet the Paris Climate Agreement.

Designed to inform business decisions that reduce emissions and track progress towards climate goals, reduce emissions. It works with:

- Greenhouse Gas Protocol
- UN-led Global Green Freight Action Plan
- CDP Reporting

Source: Smart Freight Center

Granular Data refers to the detailed and specific data that forms the core of a data warehouse, organized in a relational model without any summarized or aggregated information.

Also known as primary data.

A green bond is a fixed-income debt instrument earmarked to raise money for climate and environmental projects. It’s typically asset-linked and backed by the issuing entity’s balance sheet, so it usually carries the same credit rating as its issuers’ other debt obligations.​
Like traditional bonds, green bonds offer investors a stated return and a promise to use the proceeds to finance or refinance sustainable projects, either in part or whole.

These bonds are issued by public, private, or multilateral entities to raise capital for initiatives that contribute to a more sustainable economy and generate identifiable climate, environmental, or other benefits. Projects funded by green bonds include renewable energy, energy efficiency, clean public transportation, pollution prevention and control, conservation, sustainable water and wastewater management, and green buildings that meet internationally recognized standards and certifications

Source: Investopedia

The Greenhouse Effect is a naturally occurring process that regulates Earth’s climate by trapping heat from escaping our atmosphere. Without carbon dioxide, Earth’s natural greenhouse effect would be too weak to keep the average global surface temperature above freezing. However, as atmospheric concentrations of GHGs increase, more infrared radiation is absorbed and less escapes directly to space, resulting in amplified warming. This amplified warming is called the Enhanced Greenhouse Effect. 

Source: National Oceanic & Atmospheric Administration

Greenhouse gases constitute a group of gases contributing to global warming and climate change.
The Kyoto Protocol, an environmental agreement adopted by many of the parties to the United Nations Framework Convention on Climate Change (UNFCCC) in 1997 to curb global warming, nowadays covers seven greenhouse gases:

The non-fluorinated gases:

•  carbon dioxide (CO2)
•  methane (CH4)
•  nitrous oxide (N2O)

The fluorinated gases:

•  hydrofluorocarbons (HFCs)
•  perfluorocarbons (PFCs)
•  sulphur hexafluoride (SF6)
•  nitrogen trifluoride (NF3)

Converting them to carbon dioxide (or CO2) equivalents makes it possible to compare them and to determine their individual and total contributions to global warming. 

Source: Eurostat

Greenhouse gas emissions intensity measures the amount of greenhouse gas emissions per economic activity, providing insights into the environmental efficiency of economic production. The data are presented by economic activities, as classified by Statistical classification of economic activities in the European Community, NACE Rev. 2. The economic parameters used to calculate the intensity-ratio of greenhouse gas emissions include gross value added, production output and employment.

Source: Eurostat

The GHG Protocol represents a comprehensive global standardised framework for measuring and managing greenhouse gas (GHG) emissions. It addresses private and public sector activities, value chains and mitigation actions.

The GHC Protocol works with governments, industry associations, NGOs, businesses and other organisations and builds on a 20-year partnership between the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD).

GHG is the most used standard for greenhouse emission accounting and management.

Source: European Union

Greenhushing occurs when firms under-report or strategically withhold information about their environmental goals and achievements. They don’t advertise their green credentials, or deliberately remain silent about their future commitments to environmental sustainability.

A behaviour or activity that makes people believe that a company is doing more to protect the environment than it really is.

Greenwashing manifests itself in several ways – some more obvious than others. Tactics include:

• Claiming to be on track to reduce a company’s polluting emissions to net zero when no credible plan is actually in place.
• Being purposely vague or non-specific about a company’s operations or materials used.
• Applying intentionally misleading labels such as “green” or “eco-friendly,” which do not have standard definitions and can be easily misinterpreted.
• Implying that a minor improvement has a major impact or promoting a product that meets the minimum regulatory requirements as if it is significantly better than the standard.
• Emphasizing a single environmental attribute while ignoring other impacts.
• Claiming to avoid illegal or non-standard practices that are irrelevant to a product.
• Communicating the sustainability attributes of a product in isolation of brand activities (and vice versa) – e.g. a garment made from recycled materials that is produced in a high-emitting factory that pollutes the air and nearby waterways.

Source: Cambridge Dictionary & UN

International Financial Reporting Standards, commonly called IFRS, are accounting standards issued by the IFRS Foundation and the International Accounting Standards Board (IASB). They constitute a standardised way of describing the company's financial performance and position so that company financial statements are understandable and comparable across international boundaries. They are particularly relevant for companies with shares or securities publicly listed.

IFRS specify in detail how companies must maintain their records and report their expenses and income. They were established to create a common accounting language that could be understood globally by investors, auditors, government regulators, and other interested parties.
The standards are designed to bring consistency to accounting language, practices, and statements, and to help businesses and investors make educated financial analyses and decisions.

Indirect (greenhouse gas) emissions are emissions that are a consequence of the activities of the reporting company, but occur at sources owned or controlled by another company. Indirect emissions are included in Scope 2 and Scope 3 of GHG Protocol.

Source: GHG Protocol

Internal carbon pricing is a tool an organization uses internally to guide its decision-making process in relation to climate change impacts, risks and opportunities.
ICP is a monetary value assigned to greenhouse gas emissions as a means of accounting for the future costs of climate change regulation or a company’s climate action ambitions.

Some companies apply them at a regional level to evaluate investment decisions, new product development, and growth strategies. Others have targeted their internal carbon prices at a level that will drive energy efficiency and investment, or to raise internal funds for investment in climate change initiatives. An internal carbon price can help businesses mitigate risk, hedge against future energy price increases, and better align with business opportunities in the transition to a low-carbon economy.

Source: World Bank

Life-cycle assessment (LCA) is a process of evaluating the effects that a product has on the environment over the entire period of its life thereby increasing resource-use efficiency and decreasing liabilities. It can be used to study the environmental impact of either a product or the function the product is designed to perform. LCA is commonly referred to as a "cradle-to-grave" analysis. LCA's key elements are: (1) identify and quantify the environmental loads involved; e.g. the energy and raw materials consumed, the emissions and wastes generated; (2) evaluate the potential environmental impacts of these loads; and (3) assess the options available for reducing these environmental impacts.

Source: European Enviroment Agency (EEA)

Load capacity is in the road freight transport the maximum weight of goods declared permissible by the competent authority of the country of registration of the vehicle.

Source: Eurostat

In a transportation & logistics context, load factor (also referred to as utilization) measures how well the vehicle’s capacity is utilized. This metric applies to all vehicles: ships, airplanes and trucks. It refers to the percentage of a vehicle's cargo space that is being used, expressed as a percentage of the total available capacity. A higher load factor indicates better utilization and can lead to increased efficiency and cost savings.

Cargo Load Factor can be calculated by dividing the cargo the vehicle carries by its maximum capacity.

A Multi-Echelon Supply Chain System is a networked structure of interconnected nodes, such as suppliers, production facilities, distribution centers, and retailers, organized across multiple levels, or echelons, each representing a stage in the flow of goods. Unlike a single-echelon system, which manages inventory at only one stage, a multi-echelon system coordinates inventory and supply strategies across several tiers to optimize the entire supply chain.

This system allows businesses to better manage complexity, reduce costs, and improve service levels by synchronizing inventory policies across different nodes, internal or external, based on their role (e.g., supply echelon or demand echelon). By considering the inter-dependencies between stages, multi-echelon systems support more accurate planning and decision-making throughout the supply chain.

Net zero means cutting carbon emissions to a small amount of residual emissions that can be absorbed and durably stored by nature and other carbon dioxide removal measures, leaving zero in the atmosphere.

The science shows clearly that in order to avert the worst impacts of climate change and preserve a livable planet, global temperature increase needs to be limited to 1.5°C above pre-industrial levels. Currently, the Earth is already about 1.2°C warmer than it was in the late 1800s, and emissions continue to rise. To keep global warming to no more than 1.5°C  – as called for in the Paris Agreement – emissions need to be reduced by 45% by 2030 and reach net zero by 2050.

Transitioning to a net-zero world is one of the greatest challenges humankind has faced. It calls for nothing less than a complete transformation of how we produce, consume, and move about. The energy sector is the source of around three-quarters of greenhouse gas emissions today and holds the key to averting the worst effects of climate change. Replacing polluting coal, gas and oil-fired power with energy from renewable sources, such as wind or solar, would dramatically reduce carbon emissions.

Source: UN

Nitrogen oxides (NOX) are emitted through fuel combustion. They lead to acidification, which harms soil and water quality.

Source: Eurostat

Nitrous oxide (N2O), one of several oxides of nitrogen, a colourless gas with pleasant, sweetish odour and taste, which when inhaled produces insensibility to pain preceded by mild hysteria, sometimes laughter (Known also as laughing gas).

Nitrous oxide (N2O) contributes to climate change due to its positive radiative forcing effect, and the gas has a relatively high impact, with a global warming potential (GWP) of 265 compared with a figure of 1 for carbon dioxide.

The agriculture sector dominates emissions of N2O: emissions from agricultural soils in 2022 account for 56% of total UK emissions, and other agricultural sources add another 14%. Other important sources in recent years include road transport, other fuel combustion sources and waste processes. 

Source: Britannica & National Atmospheric Emissions Inventory

Primary data includes data provided by suppliers or other value chain partners related to specific activities in the reporting company’s value chain. Such data may take the form of primary activity data, or emissions data calculated by suppliers that are specific to suppliers’ activities.

ADVANTAGES:

• Provide better representation of the company’s specific value chain activities
• Enables performance tracking and benchmarking of individual value chain partners by allowing companies to track operational changes from actions taken to reduce emissions at individual facilities/companies and to distinguish between suppliers in the same sector based on GHG performance
• Expands GHG awareness, transparency, and management throughout the supply chain to the companies that have direct control over emissions
• Allows companies to better track progress toward GHG reduction targets

DISADVANTAGES

• May be costly
• May be difficult to determine or verify the source and quality of data supplied by value chain partners

In GHG Protocol it is also referred as Supplier-specific method ( it collects product-level cradle-to-gate GHG inventory data from goods or services suppliers).

Source : GHG Protocol

The Product Environmental Footprint (PEF) is a method, based on life cycle assessment (LCA), that provides rules to quantify and communicate environmental impacts of products, including goods and services. Building upon global standards (e.g. ISO 14040/44) and other relevant approaches, PEF focuses on reducing impacts throughout the supply chain of products — from raw material extraction to waste management. It provides specific requirements for modelling material flows, emissions, and waste streams, enabling a thorough understanding and management of environmental impacts.

Based on PEF, Product Environmental Footprint Category Rules (PEFCR) can be further developed to improve the reproducibility, comparability, and verifiability of results for specific product groups or sectors. Drafted, managed and updated by the Technical Secretariat, the PEFCRs establish consistent and specific rules for calculating and comparing the environmental information within a product group with the aim to support, simplify and reduce costs in PEF studies.

• PEFCRs have to be updated to reflect market developments, new data and methodological developments.
• PEFCRs in revision include Feed for Food-Producing Animals, Batteris & Accumulators, Beer, Pasta, Pet Food and Dairy Products.
• NEW PEFCRs include Cut Flowers & Potted Plants, Synthetic Turf, Tourism and Aviation, Drones & eVTOLs.
• NEW PEFCRs in development include Apparel & Footwear, Marine Fish and Space.

Source: European Commission - Green Forum

In GHG Protocol this category includes all upstream (i.e., cradle-to-gate) emissions from the production of products purchased or acquired by the reporting company in the reporting year. Products include both goods (tangible products) and services (intangible products).

Cradle-to-gate emissions include all emissions that occur in the life cycle of purchased products, up to the point of receipt by the reporting company (excluding emissions from sources that are owned or controlled by the reporting company). Cradle-to-gate emissions may include:

• Extraction of raw materials
• Agricultural activities
• Manufacturing, production, and processing
• Generation of electricity consumed by upstream activities
• Disposal/treatment of waste generated by upstream activities
• Land use and land-use change5
• Transportation of materials and products between suppliers
• Any other activities prior to acquisition by the reporting company

Source: GHG Protocol

National road freight transport is defined as road transport between two places (a place of loading and a place of unloading) located in the same country by a vehicle registered in that country.

International road freight transport is defined as the transport by road between two places (a place of loading and a place of unloading) in two different countries irrespective of the country in which the vehicle is registered.

It is composed of 4 categories:

1. International loaded: Place of loading of goods in reporting country (i.e. country in which the vehicle performing the transport is registered) and place of unloading in a different country.
2. International unloaded: Place of unloading of goods in reporting country (i.e. country in which the vehicle performing the transport is registered) and place of loading in a different country.
3. Cross-trade
4. Cabotage

Total international transport – loaded, unloaded, cross-trade and cabotage - includes transport reported by hauliers registered in reporting countries performed, completely or partially, outside these countries. Transport undertaken by hauliers registered in other countries is not included.

Source: Eurostat

The Science Based Targets initiative develops standards, tools and guidance which allow companies to set greenhouse gas (GHG) emissions reductions targets in line with what is needed to keep global heating below catastrophic levels and reach net-zero by 2050 at latest.
Science-based targets show companies and financial institutions how much and how quickly they need to reduce their greenhouse gas (GHG) emissions to prevent the worst effects of climate change.

The Science-Based Targets initiative (SBTi):

-Defines and promotes best practice in emissions reductions and net-zero targets in line with climate science.
-Develops standards, tools and guidance to enable companies and financial institutions to set science-based targets in line with the latest climate science.
-Through its wholly-owned subsidiary, SBTi Services, assesses and validates companies’ and financial institutions’ targets

Source: SBTi

Emissions from operations that are owned or controlled by the reporting company.
For example: Emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions from chemical production in owned or controlled process equipment.

Source: GHG Protocol

Emissions from the generation of purchased or acquired electricity, steam, heating, or cooling consumed by the reporting company.
For example: Use of purchased electricity, steam, heating, or cooling.

Source: GHG Protocol

Also known as value chain emissions, are all indirect emissions (not included in scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions. 

For example: Production of purchased products, transportation of purchased products, or use of sold products.
By definition, scope 3 emissions occur from sources owned or controlled by other entities in the value chain (e.g., materials suppliers, third-party logistics providers, waste management suppliers, travel suppliers, lessees and lessors, franchisees, retailers, employees, and customers). Scope 3 emissions for the reporting company are by definition the direct emissions of another entity.

The quality of the scope 3 inventory depends on the quality of the data used to calculate emissions. Companies should collect data of sufficient quality to ensure that the inventory appropriately reflects the GHG emissions of the company, supports the company’s goals, and serves the decision-making needs of users, both internal and external to the company.
In general, companies should collect high quality, primary data for high priority activities. To most effectively track performance, companies should use primary data collected from suppliers and other value chain partners for scope 3 activities targeted for achieving GHG reductions.

Source: GHG Protocol

Scope 4 is commonly described as covering " avoided emissions". It is a voluntary metric devised by the World Resources Institute in 2013. It is a neutral framework for estimating and disclosing the greenhouse gas (GHG) emissions impact of a product (good or service), relative to the situation where that product does not exist. These positive impacts are commonly referred to as “avoided emissions,” as well as “environmental load reduction potential,” “enabling effects,” and “contribution to societal reductions.” Positive impacts also frequently form part of companies’ “net positive” targets, which extend beyond GHG emissions to include numerous social and environmental impact categories. 

Source: GHG Protocol

Data that is not from specific activities within a company’s value chain  (i.e., proxy data).
Secondary data includes industry-average data (e.g., from published databases, government statistics, literature studies, and industry associations), financial data, proxy data, and other generic data. In certain cases, companies may use specific data from one activity in the value chain to estimate emissions for another activity in the value chain. 

ADVANTAGES

• Allows companies to calculate emissions when primary data is unavailable or of insufficient quality
• Can be useful for accounting for emissions from minor activities
• Can be more cost-effective and easier to collect
• Allows companies to more readily understand the relative magnitude of various scope 3 activities, identify hot spots, and prioritize efforts in primary data collection, supplier engagement, and GHG reduction efforts

DISADVANTAGES

• Data may not be representative of the company’s specific activities
• Does not reflect operational changes undertaken by value chain partners to reduce emissions
• It could be difficult to quantify GHG reductions from actions taken by specific facilities or value chain partners
• May limit the ability to track progress toward GHG reduction targets

Source: GHG Protocol

Spend-based method – estimates emissions for goods and services by collecting data on the economic value of goods and services purchased and multiplying it by relevant secondary (e.g., industry average) emission factors (e.g., average emissions per monetary value of goods).

Source: GHG Protocol

A supply chain is a complex logistics system that consists of facilities that convert raw materials into finished products and distribute them to end consumers or end customers.

Source: GHG Wikipedia

A Supply Chain Control Tower is a concept that results in combining people, process, data, organization and technology. Control towers capture and use (close to) real-time operational data from across the business ecosystem to provide enhanced visibility and improve decision making.

Supply chain control tower is not a stand-alone SCM application, but an integrated capability embedded in a broader SCM suite or tool. It could be an intelligent data platform providing use-case specific insights, predictions and suggestions.

6 key technology capabilities for a supply chain control tower:

1. Continuous intelligence: Capture data continuously and in real time (event stream processing or business activity monitoring).
2. Advanced analytics: Leverage predictive and prescriptive analytics to move from being reactive to proactive.
3. Impact analysis: Understand the impact of signals from the digital ecosystem to the company’s supply chain.
4. Scenario modeling: Simulate different scenarios for providing a suitable smart response.
5. Collaborative response: Connect and collaborate in the ecosystem (aka collaboration room).
6. Artificial intelligence: Drive a higher degree of automation by artificial intelligence/machine learning.

Source: Gartner, Inc., What Is a Supply Chain Control Tower, Ashutosh Gupta, March 25, 2022.

Supply chain management (SCM) is the monitoring and optimization of the production and distribution of a company’s products and services. It seeks to improve and make more efficient all processes involved in turning raw materials and components into final products and getting them to the ultimate customer. Effective SCM can help streamline a company's activities to eliminate waste, maximize customer value, and gain a competitive advantage in the marketplace.

Source: Investopedia

The United Nations Brundtland Commission, in 1987,  defined sustainability as “meeting the needs of the present without compromising the ability of future generations to meet their own needs."Sustainability has three dimensions: environment, society, and economy, thus emphasizing the close connection between economic, social, and environmental processes."

According to My Climate, "sustainability means conserving the use of resources such as habitats, raw materials, energy, or human labour. Humanity should use these resources in such a way that they can be maintained over a long period of time, rather than being depleted. The key idea here is being mindful of future generations, which is why sustainability is sometimes also referred to as “future viability” and “intergenerational equity”. Climate protection is thus an intrinsic part of sustainability. It’s about actively considering the environment, economy, and society and making the effort to bring them into balance."

Source: United Nations / My Climate  

The Sustainable Development Goals (SDGs) - also known as the Global Goals - were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.
The 17 SDGs are integrated—they recognize that action in one area will affect outcomes in others, and that development must balance social, economic and environmental sustainability.

Countries have committed to prioritize progress for those who're furthest behind. The SDGs are designed to end poverty, hunger, AIDS, and discrimination against women and girls.

The creativity, knowhow, technology and financial resources from all of society is necessary to achieve the SDGs in every context.
The 17 SGDs are:

1. No poverty
2. Zero hunger
3. Good health and well-being
4. Quality education
5. Gender equality
6. Clean water and sanitisation
7. Affordable and clean energy
8. Decent work and economic growth
9. Industry innovation and infrastructure
10. Reduced inequalities
11. Sustainable cities and communities
12. Responsible consumption and production
13. Climate action
14. Life below water
15. Life on land
16. Peace, justice and strong institutions
17. Partnerships for the goals

Source: UNDP  

The Sustainable Finance Disclosures Regulation (SFDR) empowers the European Commission to adopt delegated and implementing acts to specify how competent authorities and market participants shall comply with the obligations laid down in the directive.

It is a key piece of European legislation aimed at increasing transparency in sustainable investing. It requires financial market participants to disclose how they integrate sustainability risks and impacts into their decision-making processes.

SFDR is designed to prevent greenwashing, ensure standardized sustainability disclosures, and help investors make informed decisions. It encourages the reallocation of capital towards more sustainable economic activities by clarifying which products truly consider environmental, social, and governance (ESG) factors.

Twenty-foot equivalent unit, abbreviated as TEU, is a unit of volume used in maritime and rail transport statistics, equivalent to a 20-foot ISO container.

Source: Eurostat

Transport greenhouse gases (GHGs) are the greenhouse gases in the context of transport:

-  carbon dioxide (CO2),
-  methane (CH4) and
-  nitrous oxide (N2O) 

Source: Eurostat

A Transportation Management System (TMS) is a digital logistics platform designed to optimize the planning, execution, and tracking of the physical movement of goods—across land, air, sea, or rail. As a key component of supply chain management, a TMS helps businesses streamline their transportation operations by automating tasks such as carrier selection, route optimization, freight billing, and compliance documentation.

Modern TMS solutions, often delivered as software-as-a-service (SaaS), integrate seamlessly with Enterprise Resource Planning (ERP) and Supply Chain Management (SCM) systems. This integration enables end-to-end visibility and control over the transportation process, from order placement to final delivery.

Core functionalities of a TMS include:

• Transportation Planning and Execution: Automates shipment booking and carrier selection, supports multimodal and intermodal logistics, and optimizes routes and load configurations for cost and time efficiency.
• Freight Management: Manages rate quoting, contract negotiation, order handling, and freight settlement processes to reduce manual workload and improve accuracy.
• Dashboards, Reporting, and Analytics: Offers real-time tracking, demand forecasting, and performance analytics to support agile, data-driven decision-making.

By adopting a TMS, organizations gain improved operational efficiency, cost savings, enhanced shipment visibility, and better alignment with strategic KPIs. It also fosters collaboration across the supply chain, enabling companies to respond quickly to market changes and ensure timely delivery in a complex global logistics environment.

Upstream emissions are indirect GHG emissions related to purchased or acquired goods and services. Under the GHG Protocol, there are 8 categories of upstream emissions in Scope 3:

1. Purchased goods and services
2. Capital goods
3. Fuel- and energy-related activities (not included in scope 1 or scope 2)
4. Upstream transportation and distribution
5. Waste generated in operations
6. Business travel
7. Employee commuting
8. Upstream leased assets

Source: GHG Protocol

In GHG Protocol this category includes emissions from the operation of assets that are leased by the reporting company in the reporting year and not already included in the reporting company’s scope 1 or scope 2 inventories. This category is applicable only to companies that operate leased assets (i.e., lessees). For companies that own and lease assets to others (i.e., lessors), see category 13 (Downstream leased assets).

Leased assets may be included in a company’s scope 1 or scope 2 inventory depending on the type of lease and the consolidation approach the company uses to define its organizational boundaries (see section 5.2 of the Scope 3 Standard).

If the reporting company leases an asset for only part of the reporting year, it should account for emissions for the portion of the year that the asset was leased. A reporting company’s scope 3 emissions from upstream leased assets include the scope 1 and scope 2 emissions of lessors (depending on the lessor’s consolidation approach.

Source: GHG Protocol

In GHG Protocol this category includes emissions from the transportation and distribution of products (excluding fuel and energy products) purchased or acquired by the reporting company in the reporting year in vehicles and facilities not owned or operated by the reporting company, as well as other transportation and distribution services purchased by the reporting company in the reporting year (including both inbound and outbound logistics).

Specifically, this category includes:

• Transportation and distribution of products purchased by the reporting company in the reporting year, between a company’s tier 1 suppliers and its own operations (including multi-modal shipping where multiple carriers are involved in the delivery of a product)
• Third-party transportation and distribution services purchased by the reporting company in the reporting year (either directly or through an intermediary), including inbound logistics, outbound logistics (e.g., of sold products), and third-party transportation and distribution between a company’s own facilities.

Emissions may arise from the following transportation and distribution activities throughout the value chain:

• Air transport
• Rail transport
• Road transport
• Marine transport
• Storage of purchased products in warehouses, distribution centers, and retail facilities

Source: GHG Protocol

In GHG Protocol this category includes emissions from the use of goods and services sold by the reporting company in the reporting year. A reporting company’s scope 3 emissions from use of sold products include the scope 1 and scope 2 emissions of end users. End users include both consumers and business customers that use final products.

Source: GHG Protocol

Also known as Scope 3 emissions are all indirect emissions (not included in scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions. 

For example: Production of purchased products, transportation of purchased products, or use of sold products.

By definition, scope 3 emissions occur from sources owned or controlled by other entities in the value chain (e.g., materials suppliers, third-party logistics providers, waste management suppliers, travel suppliers, lessees and lessors, franchisees, retailers, employees, and customers). Scope 3 emissions for the reporting company are by definition the direct emissions of another entity.

The quality of the scope 3 inventory depends on the quality of the data used to calculate emissions. Companies should collect data of sufficient quality to ensure that the inventory appropriately reflects the GHG emissions of the company, supports the company’s goals, and serves the decision-making needs of users, both internal and external to the company.

In general, companies should collect high quality, primary data for high priority activities. To most effectively track performance, companies should use primary data collected from suppliers and other value chain partners for scope 3 activities targeted for achieving GHG reductions.

Source: GHG Protocol

Vessel Utilization is the ratio of loaded containers to the total container slots available on a vessel.
Utilization (i.e., load factor) is likely one of the most important factors to influencing CO2 emission intensity. As it affects vessel and voyage efficiency, vessel capacity should be maximized to increase the total TEU transferred by each vessel. Increasing the total TEU per vessel results in more efficient voyages with less environmental impact.

In GHG Protocol this category includes emissions from third-party disposal and treatment of waste that is generated in the reporting company’s owned or controlled operations in the reporting year. This category includes emissions from disposal of both solid waste and wastewater. Only waste treatment in facilities owned or operated by third parties is included in scope 3.

Waste treatment at facilities owned or controlled by the reporting company is accounted for in scope 1 and scope 2. Treatment of waste generated in operations is categorized as an upstream scope 3 category because waste management services are purchased by the reporting company. This category includes all future emissions that result from waste generated in the reporting year.

Source: GHG Protocol

Well-to-Wheel (WTW) is a comprehensive concept used to assess the total environmental impact of a specific transportation fuel or technology throughout its entire lifecycle, from the initial extraction or production of the energy source to its end use in a vehicle's wheels. WTW analysis provides a holistic view of the energy and emissions associated with a particular mode of transportation, taking into account all the stages involved.

Well-to-wheel emissions can be divided into well-to-tank (WTT) emissions and tank-to-wheel (TTW) emissions.

Well-to-Tank (WTT) Emissions:

• Refer to the total greenhouse gas emissions associated with the production, processing, and distribution of a specific fuel type from the point of extraction or production (the "well") to the point where it is stored in the vehicle's fuel tank.
• Include all the emissions generated during the entire supply chain of the fuel. This includes activities like extracting crude oil (for gasoline or diesel), refining the crude oil into fuel, transporting the fuel to distribution points, and storing it at gas stations.
• Provide a comprehensive assessment of the environmental impact of a specific fuel type, taking into account the energy and emissions associated with its production and distribution.

Tank-to-Wheel (TTW) Emissions:

• Focus specifically on the emissions produced by a vehicle's engine while it is in operation and being driven on the road. These emissions are often measured in grams of CO2 equivalent per mile or kilometer.
• Include all the pollutants released during the combustion of the fuel in the engine, such as carbon dioxide (CO2), nitrogen oxides (NOx), particulate matter (PM), and other harmful substances.
• Provide insight into the immediate impact of a vehicle on the environment when it is in use and can vary depending on factors like vehicle efficiency, driving conditions, and maintenance