Absolute target. A target defined by a reduction in absolute emissions over time, for example, reduce CO2 emissions by 25 percent below 2000 levels by 2010.

Activity data. Data that quantify an emission-generating activity, such as the use of electricity, in units that allow for emissions to be calculated (e.g., kilowatt hours, kilometers traveled, gallons of heating oil).

Base year. A historic datum (a specific year or an average over multiple years) against which a company’s emissions are tracked over time.

Base-year emissions. GHG emissions in the base year.

Base-year emissions recalculation. Recalculation of emissions in the base year to refl ect a change in the company’s structure or a change in the accounting methodology it used. This ensures data consistency over time, that is, comparisons of like with like over time.

Boundaries. GHG accounting and reporting boundaries, for example, organizational and operational boundaries. The inventory boundary determines which emissions are accounted for and reported by the company.

Capital lease. A lease transferring most of the risks and rewards of ownership to the lessee and accounted for as an asset on the lessee’s balance sheet. Also known as a financial or finance lease. Leases other than capital/financial/finance leases are operating leases. Consult an accountant for further detail, as definitions of lease types differ among various accepted financial standards.

Carbon dioxide-equivalent (CO2e). The universal unit of measurement to indicate the global warming potential (GWP) of greenhouse gases, expressed in terms of the GWP of one unit of carbon dioxide. It is used to evaluate releasing (or avoiding releasing) different greenhouse gases against a common basis.

Control. A company’s ability to direct the policies of another operation. More specifi cally, it is defined as either operational control (the organization or one of its subsidiaries has the full authority to introduce and implement its operating policies at the operation) or financial control (the organization has the ability to direct the financial and operating policies of the operation with a view to gaining economic benefi ts from its activities).

De minimus emissions. Emissions generated from small sources. Collectively, de minimus emissions may be large.

Direct emissions. GHG emissions from sources that are owned or controlled by the reporting company.

Emission allowance. A commodity giving its holder the right to emit a certain quantity of GHGs.

Emission factor. A factor that converts activity data to emission values.

Emissions. The release of GHGs into the atmosphere.

Equity share. A company’s extent of rights to the risks and rewards flowing from an operation. Typically, the share of economic risks and rewards in an operation is aligned with the company’s percentage ownership of that operation, and equity share normally is the same as the ownership percentage.

Finance or capital lease. See definition for “capital lease.”

GHG credit. GHG offsets converted to GHG credits when used to meet an externally imposed target. A GHG credit is a convertible and transferable instrument usually offered by a GHG program.

GHG inventory. A list of greenhouse gas emission sources and their quantities.

GHG program. A generic term referring to any voluntary or mandatory international, national, sub-national, government, or non-governmental entity that registers, certifies, or regulates GHG emissions or removals outside the company.

GHG Protocol. A set of common standards and calculation tools for measuring and reporting corporate GHG emissions. Developed by a multiple-stakeholder group coconvened by the World Resources Institute and the World Business Council for Sustainable Development.

GHG registry. A public database of organizational GHG emissions and/or project reductions, for example, the California Climate Action Registry and the World Economic Forum’s Global GHG Register. Each registry has its own rules regarding what and how information is reported.

GHG source. Any physical unit or process that releases GHG into the atmosphere.

Global warming potential. A factor describing the radiative forcing impact (degree of harm to the atmosphere) of one unit of a given GHG relative to one unit of CO2.

Greenhouse gases (GHGs). Naturally occurring and manmade gases that trap infrared radiation as it is reflected from the earth’s surface, trapping heat and keeping the earth warm.

Green power. A generic term for renewable energy sources and specific clean energy technologies that emit fewer GHG emissions compared with those of other sources of energy. Includes solar photovoltaic panels, solar thermal energy, geothermal energy, biomass, landfill gas, certified low-impact hydropower, and wind turbines.

Indirect emissions. GHG emissions that are a consequence of the reporting company’s operations but occur at sources owned or controlled by another company.

Intensity target. A target defined by a reduction in emissions relative to a measurement of business activity, for example, reduce CO2 per square foot of retail space by 12 percent between 2000 and 2008.

Life cycle analysis. Assessment of the sum of a product’s effects (e.g., GHG emissions) at each step in its life cycle, including resource extraction, production, use, and waste disposal.

Offset. A specific activity or set of activities that reduce, remove, or sequester GHG emissions from the atmosphere.

Operating lease. A lease that does not transfer the risks and rewards of ownership to the lessee and is not recorded as an asset in the lessee’s balance sheet. Leases other than operating leases are capital/financial/finance leases. Consult an accountant for further detail, as definitions of lease types differ among various accepted financial standards.

Operational boundary. The boundaries that determine the direct and indirect emissions associated with operations owned or controlled by the reporting company. This assessment allows a company to establish which operations and sources cause direct and indirect emissions, and to decide which indirect emissions to include that are a consequence of its operations.

Organizational boundary. The boundaries that determine the operations owned or controlled by the reporting company, depending on the approach taken (equity share or control approach).

Purchased electricity. Electricity, heat or steam used by the reporting company but generated by another company. Renewable energy. Energy taken from sources that are inexhaustible, for example, wind, water, solar, geothermal energy, and biomass.

Reporting. Presenting data to internal management and external users such as regulators, shareholders, the general public, and specific stakeholder groups.

Scope. Defines the operational boundaries in relation to direct and indirect GHG emissions.

Scope 1 emissions. The reporting company’s direct emissions.

Scope 2 emissions. The reporting company’s indirect emissions from purchased electricity, heat, and steam.

Scope 3 emissions. The reporting company’s indirect emissions other than those covered in scope 2.

Target base year. The base year used for defining a GHG reduction target.

Target level. The level of emissions that a company intends to reduce by a specific date as part of its commitment.