Essential Glossary: Sustainability, Carbon Accounting & LCA Terms

12–18 minutes

115 Essential Terms

TermDefinitionSource Link
Abiotic Depletion PotentialThe depletion of non-renewable natural resources like minerals and fossil fuels, based on their concentration reserves and extraction rates.https://cml.leiden.edu/
Acidification PotentialThe potential for substances to form acids that can lower the pH of rainwater and cause environmental damage to soils, waters, and ecosystems.https://www.epa.gov/acidrain
AdditionalityPrinciple that emission reductions or removals from a project would not have occurred without carbon credit financing, ensuring offsets represent genuine climate benefits.https://unfccc.int/
AllocationThe procedure used to divide environmental impacts between multiple products from the same process, typically using mass, energy, or economic criteria.https://www.iso.org/standard/37456.html
Attributional LCAAn LCA modeling approach that describes the environmental impacts attributable to a product system using average data and allocation procedures.https://consequential-lca.org
B CorpCertification for companies meeting high standards of social and environmental performance, accountability, and transparency as verified by B Lab.https://www.bcorporation.net
BaselineReference scenario representing what would have happened without a carbon project, used to measure the actual emission reductions achieved.https://unfccc.int/
BECCSBioenergy with Carbon Capture and Storage – process combining biomass energy generation with carbon capture and storage, potentially achieving negative emissions.https://www.iea.org/
Big Data AnalyticsAdvanced computational techniques for processing large, complex environmental datasets to extract insights and support data-driven decision-making in sustainability.Academic literature on sustainability analytics
BiomimicryInnovation inspired by nature’s strategies and designs, applying biological principles to create sustainable technologies and processes.Industrial ecology literature
Biotic Depletion PotentialThe depletion of renewable biological resources like forests and fisheries faster than their natural regeneration rate.Ecological Footprint Methodology
BREEAMBuilding Research Establishment Environmental Assessment Method – science-based sustainability assessment method for buildings providing ratings from Pass to Outstanding.https://www.breeam.com
Carbon AccountingSystematic methodology for measuring, monitoring, and quantifying greenhouse gas emissions across an organization’s operations and value chain.https://ghgprotocol.org/
Carbon CreditsCertificates representing one tonne of CO2 equivalent emissions reduced or removed, traded in carbon markets to meet climate commitments.https://unfccc.int/
Carbon FootprintThe total greenhouse gas emissions caused directly and indirectly by an individual, organization, event, or product, expressed in CO2 equivalents.https://www.epa.gov/carbon-footprint-calculator
Carbon IntensityMeasure of carbon emissions per unit of economic output, energy use, or production, enabling comparison of emission efficiency across activities.https://ghgprotocol.org/
Carbon Management SoftwareDigital platforms that help organizations measure, track, and manage greenhouse gas emissions across all scopes and generate compliance reports.https://www.workiva.com/products/carbon
Carbon MarketsSystems where carbon credits are bought and sold, enabling cost-effective achievement of emission reduction targets through market mechanisms.https://unfccc.int/
Carbon NeutralBalancing carbon emissions with an equivalent amount of carbon removal or offsetting, often achieved through emission reductions and carbon credits.https://unfccc.int/
Carbon ReportingProcess of calculating and disclosing greenhouse gas emissions data to stakeholders, regulators, or voluntary disclosure platforms like CDP.https://www.cdp.net/
CDPGlobal non-profit running the world’s environmental disclosure system where companies report on climate, forests, and water security risks.https://www.cdp.net
Characterization FactorA numerical value that converts inventory data into common units for specific impact categories (e.g., converting methane to CO₂ equivalents).https://www.iso.org/standard/37456.html
Circular EconomyA systems framework that eliminates waste and pollution, circulates products and materials at highest value, and regenerates nature through design.https://ellenmacarthurfoundation.org/
Cleaner ProductionA preventive environmental strategy applying continuous improvement to processes, products, and services to increase efficiency and reduce environmental risks.UNEP Cleaner Production resources
Compliance Carbon MarketRegulated markets created by mandatory emission trading schemes where companies must purchase credits to meet legally binding emission limits.https://unfccc.int/
Consequential LCAAn LCA modeling approach that estimates how environmental impacts change as a consequence of a decision, using marginal data and system expansion.https://consequential-lca.org
Co-product AllocationThe method for distributing environmental impacts when a single process produces multiple valuable products, requiring division of impacts between outputs.https://www.iso.org/standard/37456.html
Cradle-to-CradleA design philosophy treating all materials as nutrients in cycles, where products are designed for complete material recovery and reuse without waste.McDonough & Braungart Framework
Cradle-to-GateA partial LCA approach that assesses environmental impacts from raw material extraction through the factory gate, excluding use and disposal phases.https://www.epa.gov/lca
Cradle-to-GraveA comprehensive LCA approach that assesses environmental impacts from raw material extraction through production, use, and final disposal of a product.https://www.epa.gov/lca
CSRDCorporate Sustainability Reporting Directive – EU regulation requiring nearly 50,000 companies to report comprehensive sustainability information using double materiality.https://finance.ec.europa.eu/
Cumulative Energy DemandThe total amount of primary energy required throughout a product’s life cycle, including renewable and non-renewable sources.Ecoinvent Database
Cut-off CriteriaRules that define which processes or materials can be excluded from LCA based on their low contribution to total impacts (typically 1-5% thresholds).https://www.iso.org/standard/37456.html
Damage AssessmentThe evaluation of environmental impacts at the endpoint level, measuring final damage to areas of protection like human health and ecosystems.UNEP/SETAC Guidelines
DecouplingBreaking the link between economic growth and environmental impact by reducing resource consumption and emissions per unit of economic activity.Ellen MacArthur Foundation
DematerializationThe reduction of material inputs and waste outputs per unit of economic output, achieved through improved efficiency and design optimization.Industrial ecology literature
Design for DisassemblyEngineering products to be easily taken apart at end-of-life, facilitating material recovery, reuse, and recycling while reducing waste disposal costs.https://www.epa.gov/
Design for Environment (DfE)A design methodology that considers environmental impacts throughout a product’s lifecycle, from material selection through end-of-life disposal or recycling.https://www.epa.gov/
Direct Air Capture (DAC)Technology that uses chemical processes to extract CO2 directly from ambient air for permanent storage or utilization, offering scalable carbon removal.https://www.iea.org/
Eco-efficiencyAchieving maximum economic value while minimizing environmental impact through resource optimization and waste reduction strategies.Academic literature on sustainable manufacturing
EcoinventThe world’s leading life cycle inventory database containing over 18,000 datasets covering energy, agriculture, transport, chemicals, and construction materials.https://ecoinvent.org
EcotoxicityThe potential for toxic substances to harm ecosystems and biodiversity in freshwater, marine, or terrestrial environments.https://www.oecd.org/chemicalsafety/testing/
Economic AllocationAn allocation method that divides environmental impacts between co-products based on their relative economic value or market price.https://www.iso.org/standard/37456.html
Embodied CarbonThe total greenhouse gas emissions associated with a product’s upstream production stages, including material extraction, transportation, and manufacturing.https://www.epa.gov/greeningepa/
Endpoint IndicatorsEnvironmental impact measures at the final damage level, showing effects on human health, ecosystem quality, and resource availability.UNEP/SETAC Guidelines
EPDEnvironmental Product Declaration – ISO Type III environmental declaration providing third-party verified data about a product’s environmental performance from lifecycle perspective.https://www.environdec.com
EU TaxonomyEuropean Union’s classification system establishing science-based criteria to determine which economic activities are environmentally sustainable.https://finance.ec.europa.eu/
EutrophicationThe process where water bodies accumulate excessive nutrients, primarily phosphates and nitrates, leading to algae overgrowth and oxygen depletion.https://www.epa.gov/nutrientpollution/
Extended Producer Responsibility (EPR)A policy approach that makes manufacturers responsible for the entire lifecycle of their products, especially end-of-life management and environmental costs.https://www.epa.gov/international-cooperation/
Fossil Fuel DepletionThe depletion of non-renewable fossil fuel resources (oil, gas, coal) based on remaining reserves and current extraction rates.CML-IA Methodology
Fossil Resource ScarcityThe increasing difficulty and cost of extracting remaining fossil fuel resources as easily accessible reserves are depleted.ReCiPe 2016 Methodology
Freshwater ConsumptionThe volume of freshwater consumed and not returned to its original source, affecting local water availability.https://www.iso.org/standard/43263.html
Functional UnitA quantified description of the performance requirements that the product system fulfills, providing a reference basis for comparing different products.https://www.iso.org/standard/37456.html
GaBiEnterprise LCA software platform combining robust modeling capabilities with extensive databases to support carbon footprinting and sustainability assessments.https://sphera.com/
GHG ProtocolThe world’s most widely used greenhouse gas accounting standards, providing frameworks for measuring emissions across Scope 1, 2, and 3 categories.https://ghgprotocol.org
Global Warming Potential (GWP)A measure of how much energy the emission of one ton of a gas absorbs over a given period relative to one ton of CO2.https://www.epa.gov/ghgemissions/
Goal & Scope DefinitionThe first phase of LCA that defines the purpose, intended audience, and boundaries of the assessment, establishing what will be studied and why.https://www.iso.org/standard/37456.html
Green Supply ChainSupply chain management practices that integrate environmental considerations into procurement, production, and distribution decisions to reduce ecological footprint.Academic research on green logistics
GRIGlobal Reporting Initiative – provides the world’s most widely used sustainability reporting standards, used by over 10,000 reporters across 100+ countries.https://www.globalreporting.org
Human ToxicityThe potential for chemical substances to cause cancer and non-cancer health effects in humans through environmental exposure pathways.USEtox Model Documentation
Hybrid LCAA methodology combining process-based LCA data with input-output economic analysis to address truncation errors while achieving more complete impact coverage.Academic literature on hybrid LCA
Impact CategoryA class of environmental effects (like climate change or acidification) to which life cycle inventory results are assigned based on their potential impacts.https://www.iso.org/standard/37456.html
Industrial EcologyThe study of material and energy flows in industrial systems aimed at creating closed-loop industrial processes that mimic natural ecosystems.Industrial ecology literature
Industrial SymbiosisA collaborative network where different industries exchange resources, materials, and energy to create closed-loop relationships that reduce waste and improve efficiency.Kalundborg Symbiosis case studies
Input-Output AnalysisAn economic modeling technique used in LCA that employs sector-level monetary data to trace environmental impacts through entire economic supply chains.Academic literature on IO-LCA
Ionizing RadiationThe emission of radioactive substances that can damage living tissue and DNA, measured in human health impacts.ReCiPe 2016 Methodology
ISO 14040/14044International standards for Life Cycle Assessment – ISO 14040 provides framework and principles, while ISO 14044 provides detailed requirements and guidelines.https://www.iso.org
Land TransformationThe conversion of natural land to human-dominated land uses, causing habitat loss and biodiversity impacts.LC-IMPACT Methodology
Land UseThe area of land occupied and time duration for production processes, measured in square meters per year, indicating biodiversity and habitat impacts.https://www.iso.org/standard/37456.html
LeakagePhenomenon where emission reduction activities in one location cause emissions to increase elsewhere, reducing the net climate benefit of the project.https://unfccc.int/
LEEDLeadership in Energy and Environmental Design – the world’s most widely used green building rating system with over 195,000 certified buildings.https://www.usgbc.org/leed
Life Cycle Impact Assessment (LCIA)The LCA phase that evaluates potential environmental impacts by converting inventory data into impact category indicators using characterization factors.https://www.iso.org/standard/37456.html
Life Cycle InterpretationThe final LCA phase where results are analyzed, conclusions drawn, and recommendations made based on inventory and impact assessment findings.https://www.iso.org/standard/37456.html
Life Cycle Inventory (LCI)The data collection and modeling phase that quantifies all inputs (energy, materials) and outputs (emissions, waste) for the product system.https://www.iso.org/standard/37456.html
Life Cycle Inventory DatabaseA comprehensive collection of quantified environmental data documenting inputs and outputs for thousands of industrial processes used in LCA.https://ecoinvent.org
Machine Learning in LCAApplication of AI algorithms to automate data collection, predict environmental impacts, and discover patterns in sustainability data to improve LCA efficiency.Academic literature on ML-LCA
Marine EutrophicationNutrient enrichment in marine coastal environments leading to algal blooms, dead zones, and marine ecosystem degradation.https://www.noaa.gov/
Mass AllocationAn allocation method that divides environmental impacts between co-products based on their relative mass or physical quantities.https://www.iso.org/standard/37456.html
Material Flow Analysis (MFA)A quantitative method to track flows and stocks of materials within a defined system, helping identify opportunities for waste reduction.Academic literature on MFA
Midpoint IndicatorsEnvironmental impact measures at intermediate points in the cause-effect chain, focusing on specific problems like global warming potential or ozone depletion.UNEP/SETAC Guidelines
Mineral DepletionThe depletion of mineral resources from the Earth’s crust, measured against global reserves and extraction rates.CML-IA Methodology
Nature-Based SolutionsActions that protect, restore, or sustainably manage ecosystems to address climate change while delivering benefits for biodiversity and human well-being.https://www.iucn.org/
Net ZeroAchieving balance between greenhouse gas emissions produced and removed from atmosphere, typically requiring 90-95% emission reductions with remaining emissions offset.https://unfccc.int/
NormalizationAn optional step that relates impact assessment results to reference values to help interpret the relative magnitude of impacts.https://www.iso.org/standard/37456.html
OpenLCAFree, open-source life cycle assessment software providing professional LCA modeling capabilities with access to multiple databases including ecoinvent.https://www.openlca.org
Ozone Depletion Potential (ODP)The relative ability of a substance to destroy stratospheric ozone compared to CFC-11, which has an ODP of 1.0.https://www.epa.gov/ozone-layer-protection
Particulate Matter FormationThe creation of fine particles in the atmosphere that can cause respiratory health problems and visibility reduction.https://www.epa.gov/pm-pollution
PCFProduct Carbon Footprint – calculation of all greenhouse gas emissions generated throughout a product’s entire life cycle, measured in CO2 equivalents.https://ghgprotocol.org/
PermanenceRequirement that carbon storage or emission reductions are maintained over the long term, preventing reversals that would undermine climate benefits.https://unfccc.int/
Photochemical Oxidation (POCP)The formation of ground-level ozone and smog through reactions of volatile organic compounds and nitrogen oxides in sunlight.https://eplca.jrc.ec.europa.eu/
Process-Based LCAThe traditional bottom-up LCA approach that models environmental impacts by connecting specific unit processes representing individual activities in a product’s life cycle.https://ecoinvent.org
Product StewardshipA shared responsibility approach where all stakeholders in a product’s lifecycle work together to reduce environmental impacts.https://www.epa.gov/smm/
Product SystemThe collection of unit processes connected by flows of intermediate products that performs one or more defined functions within the LCA boundary.https://www.iso.org/standard/37456.html
PUEPower Usage Effectiveness – data center efficiency metric calculated by dividing total facility energy by IT equipment energy, with values closer to 1.0 indicating higher efficiency.Data center industry standards
REDD+Reducing Emissions from Deforestation and Forest Degradation – UN mechanism providing financial incentives for developing countries to reduce forest emissions.https://unfccc.int/
Reference FlowThe amount of product needed to fulfill the functional unit, expressed in physical quantities that flows through the system.https://www.iso.org/standard/37456.html
Resource DepletionThe consumption of natural resources faster than they can be replenished, threatening long-term availability for future generations.UNEP Resource Panel Reports
Reverse LogisticsSupply chain processes dedicated to the backward flow of products and materials for maintenance, repair, reuse, refurbishment, remanufacturing, recycling, or disposal.Ellen MacArthur Foundation
SASBSustainability Accounting Standards Board – provides industry-specific standards for companies to disclose financially material sustainability information to investors.https://www.sasb.org
SBTiScience Based Targets initiative – enables companies to set greenhouse gas emissions reduction targets aligned with climate science and Paris Agreement goals.https://sciencebasedtargets.org
Science-Based TargetsEmission reduction targets that align with what climate science deems necessary to meet Paris Agreement goals of limiting warming to 1.5°C.https://sciencebasedtargets.org
Scope 1 EmissionsDirect greenhouse gas emissions from sources owned or controlled by an organization (e.g., fuel combustion in boilers, company vehicles).https://ghgprotocol.org/
Scope 2 EmissionsIndirect emissions from purchased electricity, steam, heat, or cooling consumed by the organization but generated off-site.https://ghgprotocol.org/
Scope 3 EmissionsAll other indirect emissions in the organization’s value chain, including upstream and downstream activities like purchased goods and business travel.https://ghgprotocol.org/
Sensitivity AnalysisThe systematic evaluation of how changes in key assumptions, data, or methods affect LCA results to test the robustness of conclusions.https://www.iso.org/standard/37456.html
SimaProProfessional life cycle assessment software that enables sustainability experts to model environmental impacts and create ISO-compliant LCA studies.https://simapro.com
Software Carbon Intensity (SCI)An international standard (ISO/IEC 21031:2024) measuring the rate of carbon emissions from software applications per functional unit.https://greensoftware.foundation
Spatial BoundaryThe geographical scope of the LCA, determining which locations and regional characteristics are included in the assessment.https://www.iso.org/standard/37456.html
Stratospheric Ozone DepletionThe destruction of the protective ozone layer in the upper atmosphere, increasing harmful UV radiation reaching Earth’s surface.Montreal Protocol Assessment Reports
Supply Chain EmissionsGreenhouse gas emissions generated across a company’s value chain by suppliers and customers, typically representing the largest portion of Scope 3 emissions.https://carbonchain.com/
Sustainability Reporting SoftwareIntegrated software solutions enabling organizations to collect ESG data, calculate environmental impacts, and generate stakeholder reports aligned with frameworks.https://www.workiva.com/
Sustainable ManufacturingProduction processes that minimize negative environmental impacts while conserving energy and natural resources, ensuring economic viability and worker safety.https://www.epa.gov/
System BoundaryThe definition of which processes, inputs, and outputs are included or excluded from the LCA, determining the limits of the system being investigated.https://www.iso.org/standard/37456.html
System ExpansionAn allocation avoidance method that expands the product system to include additional functions, eliminating the need for impact allocation.https://www.iso.org/standard/37456.html
TCFDTask Force on Climate-related Financial Disclosures – framework for climate-related financial risk disclosure covering governance, strategy, risk management, and metrics.https://www.fsb-tcfd.org
Technological BoundaryThe definition of which technologies, processes, and infrastructure are included within the LCA system boundary.https://www.iso.org/standard/37456.html
Temporal BoundaryThe time-related scope of the LCA, defining the time period over which impacts are assessed and when they occur.https://www.iso.org/standard/37456.html
Terrestrial EutrophicationNitrogen deposition on land causing changes in plant species composition and reducing biodiversity in natural terrestrial ecosystems.ReCiPe 2016 Methodology
Uncertainty AnalysisThe assessment of how data quality, variability, and methodological choices influence the reliability and confidence of LCA results.https://www.iso.org/standard/37456.html
Voluntary Carbon MarketMarket where companies, organizations, and individuals purchase carbon credits voluntarily to offset emissions beyond regulatory requirements.https://unfccc.int/
Waste-to-EnergyRecovery processes that convert non-recyclable waste materials into electricity, heat, or fuel through thermal treatments, providing renewable energy while reducing landfill waste.https://www.epa.gov/smm/
Water FootprintThe total volume of freshwater used to produce goods and services consumed by an individual, community, or business throughout the entire production process.https://www.waterfootprint.org/
Water ScarcityThe consumption of water in regions where water resources are limited, affecting local communities and ecosystems.AWARE Method, UNEP-SETAC
WeightingAn optional step that assigns relative importance values to different impact categories to create a single aggregated environmental score.https://www.iso.org/standard/37456.html

Business Implementation Notes:

  • This glossary covers 115 essential terms across six key areas: LCA methodology, environmental impacts, carbon accounting, supply chain sustainability, standards & certifications, and data & tools
  • All definitions are sourced from authoritative organizations including ISO, EPA, GHG Protocol, and leading academic institutions
  • Terms are optimized for business professionals working on decarbonization initiatives and sustainability reporting
  • Source links provide direct access to authoritative references for deeper technical guidance and SEO backlinking value

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