Making Sense of Net Zero Terminology: A Helpful Guide

Sustainability is no longer just for big corporations or government agencies. More and more small businesses and community organisations are taking steps to become greener — whether that’s by reducing their carbon footprint, making the most of digital tools to save money or improve productivity, or simply adopting more environmentally friendly practices.

However, as soon as you begin exploring ways to make your business more sustainable, you’re often confronted with all sorts of jargon: Net zero, Scope 1 emissions, carbon offsetting, ESG reporting… You’d be forgiven for feeling baffled by what it all means. The language can seem confusing, technical, and sometimes even off-putting.

The good news is, it doesn’t have to be. In this article, we break down the most common sustainability terms you’re likely to encounter on your net zero journey. Our mission is to give you a clear, simple guide so you can feel confident as you take your first (or next) steps towards a greener business or organisation.

Why sustainability matters for small businesses & community organisations

Before we get into the glossary, it’s worth reminding ourselves why all of this is important:

• Customers increasingly care about sustainability. They want to support businesses that are doing their part. More than 80% of consumers now say they are willing to pay more sustainably produced or sourced goods*.
• Energy costs can be lowered through the use of smarter, greener equipment and digital tools.
• Regulations are changing — and being ahead of the curve will save you time, money and stress.
• Your organisation can make a real difference to your local community and the environment.

Even small changes — such as improving insulation, reducing waste, or using more efficient equipment — can help lower your carbon emissions and save money.

But to make these changes effectively, it helps to understand the language.

Net Zero and Sustainability: A Glossary of Terms

Here’s our easy-to-understand guide to the most common terms you might come across.

Carbon Credits
A permit or certificate that represents the right to emit one tonne of carbon dioxide or equivalent greenhouse gas. A business can reduce its emissions by purchasing carbon credits (see Carbon Offsetting below). Carbon credits are a tradable unit, while offsetting is the process of using those credits. Businesses can buy carbon credits to offset some of their emissions, but it’s better to focus on reducing those emissions in the first place.

Carbon Footprint
The total amount of greenhouse gases your business or organisation produces, usually measured in tonnes of CO₂ equivalent. This includes energy use, travel, production, waste, and more.

Carbon Neutral
A state where your organisation’s carbon emissions are balanced out by removing or offsetting an equal amount of carbon from the atmosphere. For example, planting trees to absorb CO₂.

Carbon Offsetting
Investing in projects that remove or reduce greenhouse gases, or support environmentally-friendly projects such as tree planting or renewable energy projects, to compensate for your own emissions.

Circular Economy
A system where resources are reused, repaired, and recycled rather than being thrown away. This reduces waste and helps conserve natural resources.

Climate Change
The long-term changes in global or regional climate patterns, largely driven by human activity — particularly the burning of fossil fuels which increases greenhouse gas levels.

Decarbonisation
The process of reducing carbon emissions by switching to greener energy sources, improving efficiency, or adopting more sustainable business practices.

Energy Efficiency
Using less energy to achieve the same result. This might include better insulation, LED lighting, energy-efficient appliances, or smart heating controls.

ESG (Environmental, Social, and Governance)
A way of measuring how a business or organisation performs in areas such as environmental responsibility, social impact, and ethical management. ESG is becoming increasingly important to investors and customers.

Greenwashing
When a business or organisation gives a false or misleading impression of its environmental efforts. For example, promoting a product as eco-friendly without meaningful action behind it.

Greenhouse Gases (GHGs)
Gases such as carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O) that trap heat in the Earth’s atmosphere and contribute to climate change.

Net Zero
You’ve reached net zero when the amount of greenhouse gases your organisation emits is equal to the amount it removes from the atmosphere. This is often achieved through a combination of reducing emissions and using carbon offsetting or carbon capture technologies.

Renewable Energy
Energy that comes from sources that naturally replenish, such as solar, wind, hydro (water), and biomass. Using renewable energy helps reduce carbon emissions.

Scope 1, Scope 2, Scope 3 Emissions
A way of categorising where your carbon emissions come from:

• Scope 1: Direct emissions from your own activities (e.g., company vehicles, on-site fuel use).
• Scope 2: Indirect emissions from energy you purchase (e.g., electricity, heating).
• Scope 3: All other indirect emissions, including supply chain, business travel, employee commuting, and even the use of your products.

Sustainability
The practice of running your business or organisation in a way that meets present needs without compromising the ability of future generations to meet their own needs. This includes environmental, social, and economic factors.

Supply Chain Emissions
Emissions that come from your suppliers and the process of getting goods and services to you. These are often part of Scope 3 emissions.

Zero Waste
A goal to eliminate all waste so that nothing goes to landfill or incineration. This includes reducing, reusing, recycling, and composting.

You don’t have to navigate this alone

We know that for many small businesses and community organisations, tackling sustainability can feel like a mountain to climb — especially with so many new terms and technical processes to get your head around. That’s exactly why we’re here.

We've been helping small businesses in the south west for over 30 years. Whatever challenge you're facing - whether it's sustainability, strategic planning, finances, marketing, pricing, HR or something else - we can help. Take a look at our Business Support page to see the current fully-funded programmes we have on offer. Together, we can make your organisation more resilient and ready for the future.