Sustainability & ESG Terms Glossary

Environmental and sustainability terms you keep seeing in the news, explained simply.

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ESG

Description

Short for Environmental, Social, and Governance β€” a standard for evaluating companies not just on financial performance, but on how well they protect the environment and act responsibly toward society.

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Carbon Neutrality (Net Zero)

Description

Offsetting greenhouse gas emissions with an equal amount of removal or absorption so that net emissions reach "zero." Many countries and companies have set a target of reaching net zero by 2050.

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RE100

Description

Short for "Renewable Energy 100%" β€” a global voluntary campaign in which companies commit to sourcing 100% of the electricity they use from renewable sources like solar and wind.

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Circular Economy

Description

A sustainable economic model that keeps resources in use for as long as possible through reuse, recycling, and remanufacturing, instead of the traditional "extract, make, dispose" approach.

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Greenwashing

Description

A combination of "green" and "washing" β€” marketing that presents a company or product as environmentally friendly when it isn't really, in order to look good without making real changes.

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Carbon Credit / Emissions Trading

Description

A permit representing the amount of greenhouse gas a company or country is allowed to emit. Entities that emit less than their allowance can sell their unused credits β€” a market-based system for reducing emissions.

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Sustainable Development Goals (SDGs)

Description

17 global goals adopted by the United Nations in 2015, covering issues like ending poverty, fighting climate change, and quality education, meant to be achieved worldwide by 2030.

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Green New Deal

Description

A policy approach that invests heavily in green industries to boost the economy while tackling climate change β€” named after the original "New Deal" that helped recovery from the 1930s Great Depression.

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Biodegradable

Description

Describes materials that can be broken down by microorganisms into natural substances like water and carbon dioxide. Biodegradable materials are being actively developed as an alternative to plastic pollution.

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Upcycling

Description

Going beyond simple recycling β€” adding design or creative ideas to discarded items to turn them into new products that are more valuable than the original.

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Carbon Capture (CCUS)

Description

Technology that captures CO2 emitted by factories or power plants before it reaches the atmosphere, then stores it or reuses it in other industries β€” considered a key technology for reaching net zero.

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ESG Investing

Description

An investment approach that evaluates a company's environmental impact, social responsibility, and governance alongside its revenue and profit β€” aiming for long-term risk management and sustainable returns.

Why do these terms matter now?

As climate action becomes a shared global priority, sustainability is increasingly shaping everything from corporate strategy to personal spending habits. Knowing these terms makes it much easier to follow the news and understand company ESG reports.

Check your own carbon footprint too

Curious how much CO2 your daily habits produce? Try our Carbon Footprint Calculator.

Frequently Asked Questions

Are "carbon neutrality" and "net zero" the same thing?

Yes, the two terms are used almost interchangeably β€” both describe offsetting emitted greenhouse gases with an equal amount of removal so net emissions reach zero.

How can I spot greenwashing?

Be skeptical when a company emphasizes vague words like "eco-friendly" or "green" without concrete data or third-party certification β€” that's often a sign of greenwashing, so it's worth checking for real supporting evidence.