Net-Zero Jargon: A Practical Guide to Climate Terms

As momentum toward net-zero grows, so does the complexity of the language surrounding it! Terms like abatement, scope 3 emissions, and 1.5°C pathways are increasingly common, but not always easy to understand. To support businesses navigating this space, we have developed a practical guide to demystify key climate terms through clear and simple definitions. 

1.5°C: The Intergovernmental Panel on Climate Change (IPCC) advises that global warming should be limited to 1.5°C above pre-industrial levels to avoid irreversible and potentially catastrophic impacts on ecosystems, economies, and communities. As of 2024, the world is already 1.3°C warmer and current policies put us on track for approximately 2.7°C of warming by the end of the century (Climate Action Tracker, 2024). 

Science-based target: An emissions reduction goal aligned with climate science and the objectives of the Paris Agreement. Set through initiatives like the Science Based Targets initiative (SBTi), these targets ensure companies take credible and measurable action to limit global warming to 1.5°C. 

Net-zero pathway: A trajectory aligned with limiting global warming to 1.5°C. According to the SBTi, most companies are expected to reduce their emissions by at least 90% and neutralise any remaining emissions to achieve net zero by 2050. 

Greenhouse gases (GHGs): Gases that contribute to the greenhouse effect and global warming. The seven major GHGs recognised by the Kyoto Protocol are carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF₆), and nitrogen trifluoride (NF₃). 

GHG inventory: A comprehensive account of all GHG emissions associated with an organisation’s activities. The GHG inventory is the foundation for setting climate targets, tracking progress, and building a transition plan.  

Scope 1 emissions: Direct GHG emissions from sources owned or controlled by a company. Examples include company vehicles, refrigerant emissions, and industrial processes at owned facilities. 

Scope 2 emissions: Indirect emissions associated with the purchase of electricity, steam, heating or cooling. These emissions occur at the site of production (e.g., power plants), but are accounted for by the purchaser. 

Scope 3 emissions: All other indirect emissions that occur across a company’s value chain—upstream and downstream. This includes emissions, for example, from suppliers, transport, product use, and disposal. For most companies, scope 3 makes up the majority of their total emissions footprint. 

Value chain: When a company creates a product or service, there is a whole journey involved—from gathering materials and making the product to delivering it to customers and even what happens after it's used. This entire journey is known as the value chain. It includes everything that contributes to the product’s life, not just the suppliers (which would be the supply chain), but also how the product is used and eventually disposed of. Because of this broader scope, the value chain includes all emissions sources and is often used interchangeably with scope 3.  

Abatement or mitigation: Refers to the actions taken by companies to directly reduce GHG emissions across their value chains. This may include phasing out high-emissions activities, improving energy or resource efficiency, or switching to cleaner technologies or materials.  

Carbon neutral: Describes a state where an entity balances out its carbon emissions, typically by purchasing carbon offsets that remove or avoid emissions elsewhere. Unlike net-zero, being carbon neutral does not always involve reducing emissions at the source. 

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