The world of sustainability is filled with countless acronyms that can feel overwhelming, especially for those new to the field.
For businesses that are just beginning their journey toward sustainability, these acronyms can feel daunting. Whether in Australia, New Zealand, or anywhere else, understanding these terms is crucial to navigating the complex landscape of climate action and carbon disclosure.
At BraveGen Academy, we aim to help demystify sustainability jargon, where we simplify sustainability concepts—starting with decoding the "alphabet soup" of sustainability glossary.
In this blog post, we’ll decode some of the most common acronyms in sustainability—breaking them down into easy-to-understand terms with examples relevant to businesses.
Global Climate Agreements.
Before diving into the more technical acronyms, it's important to highlight the backbone of global climate action: international agreements that set the stage for national policies and corporate responsibility.
UNFCCC (United Framework Convention on Climate Change).
The UNFCCC is a landmark international environmental treaty established in 1992. Its goal is to stabilise greenhouse gas (GHG) concentrations at levels that would prevent dangerous interference with the climate system.
This framework has led to several key agreements, including the Kyoto Protocol and the Paris Agreement, that guide global climate actions today.
Kyoto Protocol.
Signed in 1997, the Kyoto Protocol was the first legally binding international treaty to commit countries to reduce their greenhouse gas emissions. It set specific targets for industrialised nations to curb emissions, and it applied to seven GHGs: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and others.
The Kyoto Protocol laid the groundwork for future global climate initiatives and ensured that countries must take responsibility for their emissions.
Paris Agreement.
Adopted in 2015, the Paris Agreement is another crucial international treaty that builds on the UNFCCC. Its primary aim is to limit global temperature increases to below 2°C, with a more ambitious target of 1.5°C, by mid-century.
Unlike the Kyoto Protocol, which focused on binding targets for industrialised nations, the Paris Agreement encourages all countries—both developed and developing—to contribute to global climate goals.
It is a turning point in global climate policy, as nations worldwide committed to achieving net zero emissions by 2050.
The key acronyms in sustainability.
GHG (Greenhouse Gas).
One of the most common terms in sustainability, GHG refers to gases that trap heat in the Earth's atmosphere, contributing to global warming. GHGs include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and fluorinated gases. These emissions are often expressed as CO2e (carbon dioxide equivalent), which helps to standardise the measurement of different GHGs.
ESG (Environmental, Social, and Governance).
ESG refers to the three central pillars of sustainability used to evaluate a company’s ethical impact and investment potential.
Environmental factors consider how a company manages resources and reduces its environmental footprint. Social factors look at labour practices, diversity, and community engagement. Governance involves issues like corporate governance, transparency, and accountability.
In Australia and New Zealand, ESG reporting is gaining momentum with a strong focus on climate change and emissions reduction.
These regulations aim to provide greater transparency regarding businesses' climate-related risks, strategies, and opportunities.
In a survey of Australian and New Zealand companies, 97% of respondents agreed that businesses should focus on tackling ESG issues, with 52% identifying short- and medium-term emissions reduction targets as critical for upcoming disclosures.
However, the survey also revealed gaps in ESG understanding, as 29% of companies in Australasia have yet to publicly commit to achieving net zero by 2050.
Both countries are moving quickly to integrate ESG into business strategies as investor expectations grow, making it a key priority for companies operating in the region.
CDP (Carbon Disclosure Project).
The CDP is a non-profit organisation that helps companies, cities, and governments report environmental impacts. Companies submit data to the CDP on climate change, water security, and deforestation, which is then assessed and scored. Many organisations worldwide use CDP’s framework to track and improve their environmental performance.
TCFD (Task Force on Climate-Related Financial Disclosures).
The TCFD provides recommendations for companies to disclose climate-related financial risks. This framework is widely adopted across industries, especially in Australia and New Zealand, where businesses are increasingly under pressure from investors and regulators to report on their climate impacts. The TCFD's recommendations cover governance, strategy, risk management, and metrics.
TNFD (Task Force on Nature-Related Financial Disclosures)
Don't be confused—the TNFD is another key framework. It guides companies in disclosing their impacts on nature and natural habitats.
GRI (Global Reporting Initiative).
The GRI sets global standards for sustainability reporting, helping companies communicate their economic, environmental, and social impacts. It is one of the most widely used reporting frameworks and has been instrumental in guiding companies in Australia and New Zealand to improve their sustainability transparency.
GHGP (Greenhouse Gas Protocol).
The Greenhouse Gas Protocol is the most widely used international carbon accounting standard for quantifying and managing GHG emissions. It divides emissions into three scopes:
- Scope 1: Direct emissions from company-owned operations (e.g., fuel combustion).
- Scope 2: Indirect emissions from purchased electricity, heat, or steam.
- Scope 3: Indirect emissions from the entire value chain, including suppliers and customers.
Life Cycle Assessment (LCA).
LCA is a comprehensive method for assessing the environmental impacts associated with all stages of a product's life—from raw material extraction to manufacturing, usage, and disposal. By examining each phase, LCA helps businesses understand and reduce the overall environmental footprint of their products.
International Sustainability Standards Board (ISSB)
The International Sustainability Standards Board (ISSB) is an international standard-setting body that develops voluntary sustainability reporting frameworks. While the ISSB creates these guidelines, it has no authority to enforce them; companies may adopt the ISSB standards voluntarily, or local regulatory bodies can choose to make them mandatory within their jurisdictions.
Sustainability in Australia and New Zealand: Regional examples.
Australia and New Zealand have seen a surge in demand for transparent climate data reporting, with several region-specific frameworks and programs gaining popularity.
In Australia, the government is set to introduce mandatory climate reporting for large businesses starting in the 2024/2025 financial year. This will require companies to disclose Scope 1, 2, and material Scope 3 emissions, aligning with global standards such as the TCFD (Task Force on Climate-related Financial Disclosures) and the ISSB (International Sustainability Standards Board).
New Zealand has already mandated climate risk reporting for some sectors, which came into effect in 2023.
Let's take a look at some of the most common acronyms you'll often come across in companies in New Zealand and Australia.
National Australian Built Environment Rating System (NABERS).
NABERS, the National Australian Built Environment Rating System, is Australia’s standard for assessing building performance. This framework was later adapted specifically for New Zealand as NABERSNZ.
NABERSNZ is a rating system that measures the energy efficiency, water usage, waste management, and indoor environmental quality of buildings in New Zealand. Widely adopted in the commercial property sector, it serves as a critical tool for advancing sustainability and performance standards in real estate across the country.
The Australian Sustainability Reporting Standards (ASRS).
The Australian Sustainability Reporting Standards (ASRS) is a new framework that complements Australia's push for more robust ESG reporting. It will soon play a pivotal role as a mandatory climate reporting requirement set to begin in the 2024/2025 financial year.
This framework focuses on providing a consistent, standardised approach to ESG disclosures for large companies, covering areas such as climate-related risks, opportunities, emissions, and sustainability strategies.
The standards align with global frameworks like the TCFD (Task Force on Climate-related Financial Disclosures) and the ISSB (International Sustainability Standards Board), ensuring Australian companies are in step with international expectations.
The Australian Accounting Standards Board (AASB).
The Australian Accounting Standards Board (AASB) oversees financial and climate reporting standards. It draws on established international frameworks like the Task Force on Climate-related Financial Disclosures (TCFD) and the International Sustainability Standards Board (ISSB) to inform the development of its climate-related standards.
Currently, the Australian Sustainability Reporting Standards (ASRS) legislation empowers the Australian Accounting Standards Board (AASB) as the national standards-setting body and regulator. The AASB can take ISSB guidelines, tailor them for Australian use, and require compliance.
The AASB is developing sustainability-focused financial reporting standards to enhance transparency and accountability.
For the latest updates on these initiatives, visit the AASB’s official website.
Climate-Related Disclosures - New Zealand (CRD).
CRD is the New Zealand equivalent to ASRS. CRD is New Zealand's framework for climate-related financial disclosures, aimed at providing transparency around how organisations assess and manage climate-related risks and opportunities. Similar to other international standards, CRD encourages companies to incorporate sustainability into their financial decision-making and reporting.
Environmental Product Declarations (EPDs).
EPDs are standardised documents that disclose the environmental impact of a product based on data collected through an LCA. They provide transparency for consumers and stakeholders about the sustainability performance of products, helping to support informed, environmentally responsible choices.
This approach shifts the focus toward tools and frameworks that aid in sustainability assessment and reporting, rather than specific regulations while offering insights into how companies can enhance their sustainability practices and transparency.
Wrapping up the alphabet soup.
There are plenty more sustainability acronyms you'll encounter as you dive deeper into the field, but we've covered the basics to get you started. Whether you're navigating global agreements like the Paris Agreement or regional standards such as NABERSNZ, understanding these key terms is essential for organisations striving to meet their environmental goals.
These acronyms aren't just buzzwords—they represent frameworks, regulations, and initiatives critical to building a more sustainable future for your business.
With the fast pace of regulatory changes and growing pressure from investors and stakeholders, businesses need to keep up with the evolving sustainability landscape.
At BraveGen, we’re committed to providing the tools and knowledge you need to stay ahead in this crucial aspect of your business strategy.
