Activity / Business activity
Any action or process that generates emissions, such as manufacturing, transportation, or energy consumption.
AI
Artificial Intelligence, used within Sage Carbon Accounting to automate categorisation and improve the accuracy of emissions calculations.
API
Application Programming Interface, allowing Sage Carbon Accounting to integrate with other software solutions (e.g. Sage Accounting) for seamless data exchange.
Baseline year
A reference year against which future emissions reductions are tracked.
B Corp
A certification for businesses that meet high standards of social and environmental performance, accountability, and transparency.
Carbon
A key element in greenhouse gases, primarily carbon dioxide (CO₂), which significantly contributes to global warming.
Carbon accounting
The process of measuring and reporting the amount of greenhouse gas emissions produced by a business.
Carbon dioxide (CO₂)
A greenhouse gas, mainly generated from burning fuels. The biggest contributor to global warming, alongside other GHGs like methane.
Carbon dioxide equivalent (CO₂e)
A standard unit for measuring carbon footprints, representing the impact of different greenhouse gases in terms of the amount of CO₂ that would have the same global warming potential (GWP).
Carbon footprint
The total amount of greenhouse gases caused directly or indirectly by a business, measured in units of CO₂e.
Carbon offsetting
The practice of compensating for emissions by funding projects that reduce or remove carbon from the atmosphere. Offsetting is considered a last resort after all other emission reduction measures have been implemented.
Carbon reduction plan
A comprehensive strategy aimed at systematically reducing a business's carbon emissions over a set period.
Category
A classification used in Sage Carbon Accounting to organise emissions data by the type of emission source (e.g. fuel types, goods or services, transport modes).
CDP (formerly the Carbon Disclosure Project)
CDP is a leading global non-profit organisation that runs the world’s most widely used environmental disclosure system. Each year, over 11,000 companies report through CDP on a range of climate-related data, including greenhouse gas emissions, climate risks, and environmental strategies. Sage Earth Carbon Accounting uses CDP data to analyse typical emissions and climate impacts across different industrial sectors, helping businesses benchmark and improve their sustainability performance.
Corporate Sustainability Reporting Directive (CSRD)
A piece of European Union regulation that mandates certain businesses to report on their sustainability practices. It aims to enhance transparency and accountability in environmental, social, and governance (ESG) issues.
Downstream emissions
Emissions that occur after a product leaves the control of the business, such as during transportation or use by customers.
Emissions (specifically GHG emissions)
The release of greenhouse gases into the atmosphere from various sources, including (but not limited to) industrial activities, transportation, and energy production.
Emissions intensity factor
A metric which allows either a spend, or an activity (e.g. litres of fuel used, or kilometres travelled) to be converted into an emissions value, measured in carbon dioxide equivalent (CO2e).
Emissions hotspots
Areas or processes within a business that generate the most emissions relative to other areas or processes.
Emissions scopes
Categories of emissions defined by the Greenhouse Gas Protocol, including Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy), and Scope 3 (all other indirect emissions outside of the operational control of a business).
Environmental, Social and Governance (ESG)
The criteria used to assess a business's performance in terms of environmental sustainability, social responsibility, and ethical governance practices.
Fugitive emissions
Emissions from leaks or other unintended releases of highly potent greenhouse gases (F-gases), sometimes significantly more so than carbon dioxide. Examples of fugitive emissions include chlorofluorocarbons (CFCs) and hydrofluorocarbons (HFCs).
Greenhouse gases
Gases emitted into the atmosphere which have a global warming effect caused by their ability to trap heat. The types of greenhouse gases that are of major concern and focus for reduction are Carbon Dioxide (CO₂), Methane (CH₄), Nitrous Oxide (N₂O) and Fluorinated Gases (HFCs, PFCs, SF₆, NF₃), but there are many hundreds of others.
Greenhouse Gas (GHG) Protocol
The Greenhouse Gas Protocol is a globally recognised body which establishes comprehensive global frameworks to measure and manage greenhouse gas (GHG) emissions from private and public sector operations and value chains. It provides guidance to organisations on how to measure and report their emissions, aiming to drive transparency and consistency in climate action.
GHG Protocol Corporate Accounting and Reporting Standard
The GHG Protocol Corporate Accounting and Reporting Standard provides requirements and guidance for companies and other organisations to credibly measure and report GHG emissions.
Global warming potential (GWP)
Different greenhouse gases have varying impacts on global warming, quantified by their global warming potential (GWP) relative to carbon dioxide (CO2). CO2 has a GWP of 1, while some refrigerant gases have GWPs in the thousands, meaning even small leaks can significantly contribute to greenhouse gas emissions.
Industry average footprint
The average carbon footprint for businesses within a specific industry. This calculation helps organisations benchmark their greenhouse gas emissions.
Manual input
The process of manually entering data into modules within Sage Earth Carbon Accounting.
Methodology
The approach used in Sage to calculate and build a business’s carbon footprint. The methodology involves comprehensive calculations, guidelines and standards to ensure precise and transparent emissions measurement and reporting.
Net zero
The SBTi defines net zero as achieving deep decarbonisation of at least 90–95% of emissions across all scopes by 2050, aligned with limiting warming to 1.5°C. Any remaining emissions must be neutralised through high-quality, permanent carbon removals, not generic offsets. Near-term targets, such as halving emissions by 2030, are required to stay on track.
PPN 06/21
A UK procurement policy note requiring that public sector organisations report on their carbon emissions, ensuring transparency and accountability in environmental impact measurement. PPN 06/21 is particularly relevant for SMBs as they often engage in contracts with the public sector.
Process emissions
Greenhouse gas emissions that result directly from industrial activities. Examples of process emissions include carbon dioxide (CO₂) emissions from cement manufacturing, methane (CH₄) emissions from chemical production, and nitrous oxide (NOx) emissions from agricultural fertilisation.
Science Based Targets Initiative (SBTi)
An organisation driving climate action in the private sector. The SBTi provides companies with a clearly defined path to reduce emissions in line with the Paris Agreement goals, which aim to limit global warming to well below 2°C above pre-industrial levels, preferably to 1.5°C.
Scope
The means of classifying greenhouse gas emissions into distinct categories for accounting and reporting purposes under the Greenhouse Gas Protocol. The Protocol organises emissions into three scopes:
Scope 1: Direct emissions from owned or controlled sources.
Scope 2: Indirect emissions from the generation of purchased electricity, steam, heating, and cooling.
Scope 3: All other indirect emissions that occur in the value chain of the reporting company, including both upstream and downstream emissions.
Science Based Target
Corporate targets to mitigate GHG emissions that are in line with what the latest climate science says is necessary to meet the goals of the Paris Agreement – to pursue efforts to limit warming to 1.5°C. Science-based targets show companies how fast and how much they need to reduce GHGs emissions to be in line with the latest climate science.
SME
A small or medium-sized enterprise in terms of number of employees and revenue.
Two factor authentication (2FA)
A security process that requires users to provide two different forms of identification to gain access to an account or system. This typically includes something the user knows (such as a password) and something the user possesses (such as a mobile device or security token).
Upstream emissions
The greenhouse gases produced before a product or service reaches the reporting business, including emissions generated during raw material extraction, transportation, and other preliminary stages.
Value chain
The full range of activities involved in producing and delivering a product or service, from raw material extraction to final delivery and/or waste disposal.