Glossary

Climate Change Climate change describes the long-term differences in the statistics of weather patterns measured over multi-decadal periods.

Carbon Emission Carbon emissions are Greenhouse gas with the highest levels of emissions in the atmosphere. These are the emissions stemming from the burning of fossil fuels; they include carbon dioxide produced during consumption of solid, liquid, and gas fuels as well as gas flaring.

Carbon Footprint Carbon footprint is the total greenhouse gas emissions caused by an individual, event, organization, service, place or product, expressed as carbon dioxide equivalent. It is a measure of the total volume of greenhouse gases (GG) resulting from everyday economic activities.

Carbon Intensity Carbon intensity is the amount of carbon by weight emitted per unit of economic activity- most commonly gross domestic product (GDP) (CO2 emissions/GDP).

Carbon Neutrality Carbon neutrality is the balancing activity of any CO2 released into the atmosphere from a company’s activities by an equivalent amount being removed.

Carbon Offsets Carbon offset refers to a reduction in GHG emissions- or an increase in carbon storage (e.g. through land restoration or the planting of trees) – that is used to compensate for emissions that occur.

Carbon Pricing Carbon Pricing which is also known as emission trading scheme is the method for nations to reduce global warming. It is the instrument that captures the external costs of emissions that the public pays for, such as damage to crops, health care costs from heat waves and droughts, and loss of property from flooding and sea level rise- and ties them to their sources through a price, usually in the form of a price on the carbon dioxide emitted.

Climate Resilient Business Climate resilient business is about building business which can best withstand the coming stress of climate change.

Climate Risk Climate Risk refers to the potential negative impacts of Climate Change. It includes the potential for adverse effects on lives, livelihoods, health status, economic, social and cultural assets, services (including environmental), and infrastructure due to climate change.

Climate Risk Assessment Climate risk assessments identify the likelihood of future climate hazards and their potential impacts for business.

Climate Risk Measurement Climate Risk measurement refers to the process of measuring the potential exposure to the Climate change related risk.

Climate Risk Sensitive Climate Risk sensitivity refers to the situation where business gets impacted due to the risk of climate change.

Climate Scenario Climate scenarios are projections of future greenhouse gas emissions used by analysts to assess future vulnerability to climate change.

ESG Risk ESG-related risks are the environmental, social and governance-related risks and/or opportunities that may impact an entity.

Fossil Fuel Fossil fuel is a hydrocarbon-containing material formed underground from the remains of dead plants and animals. These fuels are found in the Earth’s crust and contain carbon and hydrogen, which can be burned for energy.

Green Agenda Green agenda is a participatory method for developing and implementing local sustainable development strategies and plans with active involvement of different sectors in the local community where the process is conducted.

Green Bond Green bonds are debt securities issued by an organization for the purpose of financing or refinancing projects that contribute positively to the environment and/or climate.

Green Building Green building refers to both a structure and the application of processes that are environmentally responsible and resource-efficient throughout a building’s life-cycle.

Green Finance Green financing is the process to increase the level of financial flows from the public, private and not-for-profit sectors to sustainable development priorities.

Green Loans Green loan is the form of financing that enables borrowers to finance projects that have environmental impacts.

Greenhouse Gas Greenhouse Gas is a gas that absorbs and emits radiant energy within the thermal infrared radiation (net heat energy) emitted from Earth’s surface and radiating it back to Earth’s surface, thus contributing to the greenhouse effect.

Physical Impacts The physical impacts of climate change on the world are sea level rise, ocean, warming, changes in weather patterns like drought and flooding etc.

Physical Risks Physical risks are the risks which arise from the changes in weather and climate that impact the economy.

Physical Risk Drivers Physical risk drivers are the changes in weather and climate that lead to physical risks and impacts on economies and banks.

Sustainable Finance Sustainable finance is the process of taking due account of environmental, social and governance (ESG) considerations in taking financial decisions.

Sustainable Growth Sustainable growth refers to the realistic attainable growth that a company could maintain without running into problems.