27/8/2025

Sustainability Glossary - Part 3

Maura Avallone
Sustainability Specialist

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.

Certifications & Reporting

B Corp

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.   

Sustainability Report

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.   

Compensation

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.

CO2 eq

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. 

CSRD (Corporate Sustainability Reporting Directive).

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

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 (Environmental, Social, Governance)

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.

EUDR (EU Deforestation Regulation).

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. 

FSA - Farm Sustainability Assessment

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. 

FSC (Forest Stewardship Council)

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

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. 

GHG Accounting

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. 

Corporate Governance

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.

GRI (Global Reporting Initiative)

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.

GRS (Global Recycled Standard)

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. 

Insetting

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. 

ISO (International Organization for Standardization)

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. 

LCA (Life Cycle Assessment)  

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. 

MRV System - Monitoring Reporting Verification System

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

Net zero refers to balancing the amount of greenhouse gases emitted with an equivalent amount removed from the atmosphere. This balance can be achieved by reducing emissions and adopting carbon capture technologies or practices, such as reforestation. 

Offsetting

This strategy is used to reduce a company's environmental footprint. Offsetting involves using reduction solutions outside of a company's production chain to generate carbon credits through projects that reduce or sequester emissions elsewhere. Companies and individuals often use this approach to offset their unavoidable emissions by investing in green projects, such as reforestation or renewable energy. However, offsetting is sometimes criticized for a lack of transparency and commitment by companies to reducing their environmental footprint within their own organizations. 

RINA

RINA has certified the environmental impact calculation tool developed by xFarm Technologies for agricultural cultivation. The calculation follows the life cycle assessment (LCA) methodology and uses the most common databases for the agri-food sector: Agribalyse, ​ ​Agri-footprint, Ecoinvent, and the World Food LCA Database. 

Transition risks

In the context of transitioning to a low-carbon economy, transition risks refer to potential changes in regulations, technological innovations, and consumer preferences that could impact traditional businesses and economic sectors.

SAI Platform

The SAI Platform is an organization created by the agro-industry to promote the development, adoption, and implementation of sustainable agricultural practices through collaboration among all parties involved in the production chain. The SAI Platform employs various tools and techniques, including the FSA. 

SBTi (Science Based Targets initiative)

The SBTi is an initiative that supports companies in setting science-based greenhouse gas emission reduction targets in line with global efforts to keep the rise in global temperatures below 1.5°C compared to pre-industrial levels. The SBTi's value lies in its scientific validity. 

Scope 1-2-3

This concept divides a company's greenhouse gas emissions into three categories:

  • Scope 1: Direct emissions generated by the company's controlled activities (e.g., fuel combustion in its own facilities). 
  • Scope 2: Indirect emissions resulting from the consumption of purchased energy (e.g., electricity). 
  • Scope 3: Indirect emissions that occur throughout the value chain, including those of suppliers and end consumers. 
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