> For the complete documentation index, see [llms.txt](https://knowledge.adsgroup.org.uk/8RnoQ2Y1ZgHQnhYYpqoO/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://knowledge.adsgroup.org.uk/8RnoQ2Y1ZgHQnhYYpqoO/esg-pillar/additional-resources/glossary-of-terms-and-acronyms.md). # 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. *** ## 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. *** ## 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. 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