Glossary

Anthropogenic

Caused or produced by humans.

AP6

In July 2005, the U.S joined five Asia-Pacific nations - Australia, China, India, Japan and Korea - in launching the Asia-Pacific Partnership on Clean Development and Climate - known as AP6.

ASX100

100 of Australia's largest companies based on market capitalisation.

CO2e (carbon dioxide equivalent).

Under the GHG Protocol, this is the universal unit of measurement used to indicate the global warming potential of each of the six greenhouse gases (see below), expressed in terms of the global warming potential of one unit of carbon dioxide.

Carbon Intensity

This is a measure of how much fossil fuel it takes to produce a certain amount of economic output. Thus carbon intensity is not the amount of carbon emitted, but a number pro-rated by the Gross Domestic Product (GDP) or purchasing power parity (PPP). For example, if GDP and emissions both climbed 3% in a given year, the carbon intensity would remain unchanged even though the actual emissions had risen. Globally carbon intensity dropped by 13% from 1990 to 2000, even as total emissions grew. In China, carbon intensity dropped by 47% at the same time that C02 emissions climbed by 39%. Carbon intensity measures the dependence of current business operations on carbon emissions. On average, FTSE 100 companies generate 1,126 tonnes of direct and indirect CO2-e per £million of turnover

Direct Emission

A "direct" emission is an emission from a source owned and controlled by the reporter. CO2 emitted by a power station, which burns coal to produce electricity, is classed as a direct emission. Likewise, if you drive a car, the emissions from the tailpipe of your car are direct emissions (for you).

FT500

The 500 largest publicly traded companies in the world by market capitalisation, according to the Financial Times.

FTSE100

100 of the largest UK companies based on market capitalisation.

FTSE350

350 of the largest UK companies based on market capitalisation. They have their primary listing on the London Stock Exchange. It is a combination of the FTSE 100 Index of the largest 100 companies and the FTSE 250 Index of the next largest 250.

GHG Protocol

Is the international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions. This is the tool that is used by the companies that respond to the CDP questionnaire to measure their carbon emissions.

Greenhouse gases (GHGs)

GHGs are those that contribute to the 'greenhouse effect', trapping heat from the sun in the earth's atmosphere. The main greenhouse gases are:
  • Carbon dioxide (CO2)
    • This accounts for about 380 of every million molecules (380 parts per million (ppm)).
  • Methane (CH4)
    • This accounts for 1.8 ppm. Despite this small proportion of the atmosphere, methane's total impact on the current greenhouse effect is fully a third as big as carbon dioxide's.
  • Nitrous Oxide (N20)
    • This accounts for only about 300 parts per billion (ppb) of the atmosphere, but has about 300 times the effect of C02, molecule for molecule, over its century-long lifespan in the atmosphere.
  • Hydrofluorocarbons (HFCs) and chlorofluorcarbons (CFCs)
    • These account for approximately 1 ppm
  • Perfluorocarbons (PFCs) and Sulphur hexafluoride (SF6) are present in trace amounts.

    • Indirect Emission

    "Indirect" emissions are emissions that the reporter in some sense "caused" to occur, although the reporter did not own or control the facility producing the emission, for example electricity used to light an office block would be classed in this way.

    Intergovernmental Panel on Climate Change (IPCC)

    The IPCC has been established by World Metrological Organisation (WMO) and the United Nations Environment Programme to assess scientific, technological and socio-economic information relevant for the understanding of climate change, its potential impacts and options for adaptation and mitigation. www.ipcc.ch

    Kyoto Protocol

    The Kyoto Protocol is the first ever international treaty to set legally binding emissions reduction targets on developed countries that have ratified it. Developed (called Annex 1) countries agreed to targets that will reduce their overall emissions of six greenhouse gases by 5.2 per cent below 1990 levels over the 5 year period 2008-2012. The targets vary from country to country but the Protocol has an overall goal of 5% reduction. Different countries have different reduction targets:

    Bulgaria, Czech Republic, Estonia, Latvia, Liechtenstein, Lithuania, Monaco, Romania, Slovakia, Slovenia and Switzerland

    8% reduction

    US (hasn't ratified the Protocol)

    7% reduction

    Canada, Hungary, Japan, Poland

    6% reduction

    Croatia

    5% reduction

    New Zealand, Russia, Ukraine

    No change

    Norway

    1% increase

    Australia (not ratified the Protocol)

    8% increase

    Iceland

    10% increase

    All other countries

    No mandated targets

    For further information see Kyoto Related Terminology

    NZ50

    The largest 50 companies in New Zealand based on market capitalisation.

    S&P500

    Standard & Poor's 500 Index. 500 of the largest companies in the US based on market capitalisation.

    SBF120

    Société des Bourses Françaises 120 Index is a French stock market index. The index is based on the 120 most actively traded stocks listed in France.

    SMI

    Swiss Market Index. This is the blue-chip Index in Switzerland and lists 30 of the largest companies. The CDP sample is extended to include an extra twenty companies.

    The Stern Review

    The Stern Review on the Economics of Climate Change was released in October 2006 by economist Sir Nicholas Stern for the British government. It discusses the effect of climate change and global warming on the world economy The report's basic message is that the world has to act now on climate change or face devastating economic consequences. Some of the main points it makes are:
  • If no action is taken on emissions, there is more than a 75% chance of global temperatures rising between two and three degrees Celsius over the next 50 years
  • A two to three degrees Celsius rise in temperatures could reduce global economic output by 3%
  • To stabilise at manageable levels, emissions would need to stabilise in the next 20 years and fall between 1% and 3% after that. This would cost 1% of GDP.
  • Create a global market for carbon pricing
  • Extend the European Emissions Trading Scheme (EETS) globally, bringing in countries such as the US, India and China
  • Set new target for ETS to reduce carbon emissions by 30% by 2020 and 60% by 2050
    • The full report can be found at: http://www.hm-treasury.gov.uk/independent_reviews/stern_review_economics_climate_change/stern_review_report.cfm

    UNFCCC

    The

    United Nations Framework Convention on Climate Change (UNFCCC)

    is an international environmental treaty produced at the United Nations Conference on Environment and Development (UNCED), informally known as the Earth Summit, held in Rio de Janeiro in 1992. The treaty aimed at reducing emissions of greenhouse gas in order to combat global warming.