Glossary of Terms and Acronyms

This glossary is designed to help users interpret terms used in the ESG Pathway, related sustainability frameworks, and the wider SCS programme.

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Key Acronyms

CDP

Carbon Disclosure Project – A global non-profit that runs a disclosure system for companies, cities, and regions to report environmental impacts.

CSRD

Corporate Sustainability Reporting Directive – The EU regulation requiring large and listed companies to report on sustainability performance.

ESG

Environmental, Social, and Governance – A framework used to assess an organisation's practices in non-financial areas of responsibility and performance.

GHG

Greenhouse Gas – Gases that contribute to global warming, including carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O).

ISO

International Organization for Standardization – An independent body that develops global standards, including ISO 14001 (environmental management) and ISO 14067 (carbon footprinting).

KPI

Key Performance Indicator – A quantifiable measure used to track progress against specific objectives or targets.

LCA

Lifecycle Assessment – A method to evaluate the environmental impacts of a product or service over its entire lifecycle.

SCS

Sustainable Competitive Solutions – The framework developed by ADS to support maturity improvement across ESG, Digital, and other capability pillars.

SC21

Supply Chains for the 21st Century – A continuous improvement programme led by ADS to raise performance and competitiveness in aerospace and defence supply chains.

SECR

Streamlined Energy and Carbon Reporting – A UK regulatory framework requiring qualifying companies to disclose energy use and GHG emissions.

SME

Small and Medium-Sized Enterprise – Businesses with fewer than 250 employees and a turnover of less than €50 million.

TCFD

Task Force on Climate-related Financial Disclosures – A framework for companies to disclose climate-related risks and opportunities.

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Common Terms

Baseline

A starting point for measurement. In ESG, this often refers to the initial measurement of carbon emissions or other environmental metrics.

Carbon Footprint

The total greenhouse gas emissions caused directly and indirectly by an activity, organisation, product, or person.

Circular Economy

An economic system aimed at eliminating waste and continually reusing resources to reduce environmental impact.

Commitment

A public or internal pledge to achieve a sustainability target (e.g. net zero, zero waste to landfill).

Disclosure

The process of reporting ESG-related information to stakeholders, either through voluntary frameworks or mandatory regulations.

Downstream Emissions

Greenhouse gas emissions occurring after a product leaves the manufacturer — e.g. during use, distribution, or end-of-life.

Embedded Emissions

The emissions associated with the production of a material or product before it reaches the end user, including raw material extraction and processing.

Evidence

Documentation or data used to validate claims in the ESG Pillar self-assessment, such as policies, training records, performance metrics, or external reports.

Lifecycle

The full sequence of stages a product goes through, from raw material extraction through manufacturing, use, and disposal or recycling.

Maturity Level

The stage of development an organisation has reached within the ESG Pillar assessment, from 0 (Not Considered) to 3 (Optimised).

Materiality

The concept that some ESG topics may be more relevant or impactful than others, depending on a company’s sector, operations, and stakeholders.

Policy

A formal statement or document that outlines an organisation’s approach or commitments to a specific ESG area.

Risk

The potential for adverse ESG impacts — environmental harm, social issues, governance failures — to disrupt operations or reputation.

Scope 1, 2, and 3

Categories of GHG emissions:

• Scope 1: Direct emissions from owned or controlled sources.

• Scope 2: Indirect emissions from purchased energy.

• Scope 3: All other indirect emissions (e.g. supply chain, product use, business travel).

Stakeholders

Individuals or groups affected by, or who can affect, an organisation’s ESG performance. Includes employees, customers, investors, regulators, and communities.