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We have now come to the end of our "Sustainability Glossary" series. In previous articles, we discussed general concepts of sustainability and terminology related to sustainable agriculture. Today, we will look at terminology related to certification and reporting to better understand how sustainability can actually be documented.
This business certification is issued by the nonprofit organization B Lab. It evaluates a company's social and environmental performance based on factors such as its business model, ethics, environmental impact, and customers.
A tool used to evaluate and enhance the environmental sustainability of business operations. It is a report that companies or organizations prepare annually and voluntarily, taking into account the economic, social, and environmental impacts of their processes.
Carbon compensation involves investing in projects that reduce or absorb CO₂, such as reforestation or renewable energy initiatives, to balance out one's emissions. If a company cannot eliminate or reduce its emissions, it can purchase "carbon credits" to offset them, contributing to sustainability initiatives.
This is a unit of measurement that allows different greenhouse gases to be compared by converting them into CO2 equivalents based on their global warming potential. This parameter is used to calculate the overall impact of an activity or product's greenhouse gas emissions.
It is a European Union directive that requires companies to report detailed information on their environmental, social, and governance (ESG) performance. The directive aims to make corporate sustainability practices more transparent and consistent and facilitate more responsible investment decisions.
Decarbonization refers to the reduction of carbon emissions from economic activities and production sectors. It is often associated with transitioning from fossil fuels to renewable energy sources and improving energy efficiency in sectors such as transportation, industry, and housing.
ESG criteria are used to evaluate a company's sustainability performance. These criteria include environmental impact management (E), social responsibility (S), and corporate governance (G). ESG criteria have become essential for investors seeking to integrate ethical and sustainable considerations into their investment decisions.
Approved in 2023, this European Union regulation aims to prevent the import of products linked to deforestation or forest degradation. It requires companies that trade wood, soy, palm oil, beef, coffee, cocoa, or rubber to verify that their products are not sourced from recently deforested land.
The SAI Platform developed this standard to provide a set of verifiable requirements for sustainable agriculture, which the agro-industry has adopted, with the aim to promote more sustainable agricultural production. The FSA takes a business-to-business approach and may require third-party verification based on a list of Good Agricultural Practices (GAP) grounded in three pillars: people, planet, and profit.
An international organization that certifies sustainable forest management. Products with FSC certification guarantee that they have been obtained responsibly, in accordance with environmental, social, and economic standards.
GAP (Good Agricultural Practices) is a certification for agricultural systems that use sustainable practices. It provides specific procedures that must be implemented to ensure agri-food production is safe from environmental and health perspectives. This certification requires verification by third-party bodies, which may request documentation supporting the adopted methods.
Greenhouse Gas (GHG) accounting is a comprehensive tool that quantifies a company's greenhouse gas emissions. It enables companies to develop climate strategies that align with their objectives. GHG accounting also enables the monitoring of climate change mitigation project benefits in terms of greenhouse gas emission reductions.
A set of rules, practices, and processes that direct and control a company. This includes decisions about how the company manages its resources, complies with regulations, and incorporates sustainability practices into its strategic objectives.
An international organization that sets standards for sustainability reporting. It helps companies communicate their environmental, social, and governance practices in a transparent manner. GRI reports provide investors and other stakeholders with useful information.
This certification guarantees that a product contains recycled materials and that the entire production chain complies with ethical, environmental, and social practices. It promotes the use of recycled materials in the fashion and consumer goods industries.
This is a strategy used by companies to reduce their environmental footprint. Specifically, it refers to the practices companies implement within their supply chains to reduce carbon emissions and improve sustainability. This approach focuses on optimizing business operations, promoting sustainable agricultural practices, and managing resources.
This international organization develops voluntary standards covering many sectors, including environmental management and sustainability. ISO standards, such as ISO 14001, offer companies guidelines to help them improve their environmental efficiency and reduce their impact on the planet.
A methodology for assessing the life cycle of a product, process, or activity that examines the environmental impacts associated with each stage, from production to disposal. Life cycle assessment (LCA) is used to identify areas where environmental impacts can be reduced and sustainability can be improved.
In the agricultural and environmental sectors, MRV (Monitoring, Reporting, and Verification) is a set of tools used to monitor, verify, and report on the effective implementation of a practice or the occurrence of specific events. MRV uses manual and satellite verification methods and can be useful for verifying the adoption of practices that are subject to public or private funding.
Net zero refers to balancing the amount of greenhouse gas emissions produced with an equivalent amount of emissions removed from the atmosphere. This can be done through emission reductions and the adoption of carbon capture technologies or practices such as reforestation.
Strategy used to reduce a company's environmental footprint. Specifically, offsetting uses reduction solutions outside of one's supply chain, generating carbon credits through projects that reduce or sequester emissions elsewhere. This approach is often employed by companies and individuals who wish to offset their unavoidable emissions by investing in green projectses reforestation or renewable energy). The effectiveness of offsetting is sometimes criticized for a lack of transparency and commitment by companies to reduce their environmental footprint even within the organizations themselves.
Certifying body that certified xFarm Technologies' calculation tool related to environmental impact during cultivation. The calculation follows the LCA methodology and makes use of the most common databases for agribusiness: Agribalyse, Agri-footprint, Ecoinvent, World Food LCA Database.
In the context of a transition to a low-carbon economy, by transition risks of mean changes in regulations, technological innovations, and changes in consumer preferences, which may affect traditional businesses and economic sectors.
Organization created by agribusiness to promote the development, adoption and implementation of sustainable agricultural practices through the collaboration of all parties involved in the production chain. SAI Platform makes use of various tools and techniques including FSA.
Initiative that supports companies in setting science-based greenhouse gas emission reduction targets in line with global efforts to keep global temperature rise below 1.5°C above pre-industrial levels. The value of SBTs lies in their scientific validity.
Concept that divides a company's greenhouse gas emissions into three categories:
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