The ABC of ESG

The total amount of greenhouse gases, primarily carbon dioxide (CO2), emitted directly or indirectly by an individual, organization, event, or product over its lifecycle. Measuring and reducing carbon footprints is essential for mitigating climate change.

Achieving a net-zero carbon footprint by balancing carbon emissions with carbon removal or offsetting. To become carbon-neutral we are not a big fan of offsetting. We focus on energy reduction and GHG-reduction. Only the residual part to become carbon-neutral is offsetted. That is what we did with our former investments in wind energy to make our Montea Operations Carbon-neutral.

An economic model that aims to minimize waste and maximize resource efficiency. It promotes the continuous use of resources through practices like recycling, reusing, and remanufacturing, rather than the traditional linear "take-make-dispose" model. 

ESG factors are used to evaluate the sustainability and ethical impact of investments. 
Environmental factors consider a company's impact on the environment, social factors assess its relationships with employees, communities, and customers, and governance factors evaluate its leadership and management practices.

The practice of making misleading or unsubstantiated claims about the environmental benefits of a product, service, or company.
Greenwashing aims to create a false impression of sustainability or eco-friendliness.

Refers to companies purposely keeping quiet about their sustainability goals and actions, even if they are factual, for fear of being labeled greenwashers.

A systematic analysis of the environmental impacts of a product, process, or service throughout its entire life cycle. It considers resource extraction, production, use, and disposal to identify areas for improvement and inform sustainable decision-making.

Achieving a balance between the greenhouse gases emitted into the atmosphere and those removed or offset, resulting in no net addition to the overall amount of greenhouse gases. This goal is crucial in combating climate change. Net zero is similar in principle to carbon neutrality, but is expanded in scale. To achieve net zero means to go beyond the removal of just carbon emissions. Net zero refers to all greenhouse gases being emitted into the atmosphere, such as methane (CH4), nitrous oxide (N20) and other hydrofluorocarbons.
As with carbon neutrality, to reach net zero the greenhouse gases emitted into the atmosphere must be equivalent to the greenhouse gases being removed from the atmosphere.

Energy derived from naturally replenishing sources, such as sunlight, wind, water, and geothermal heat. Unlike fossil fuels, renewable energy sources have a reduced environmental impact and contribute to reducing greenhouse gas emissions.

The practice of selecting suppliers and materials based on their social and environmental performance. Responsible sourcing in the fashion industry aims to ensure that raw materials, components, and finished products are obtained in an ethical and sustainable manner.

Refers to direct greenhouse gas (GHG) emissions that occur from sources owned or controlled by an organization.
These emissions include those generated from on-site combustion of fossil fuels, such as emissions from company-owned vehicles or equipment, as well as emissions from industrial processes.

Refers to indirect greenhouse gas emissions that result from the consumption of purchased electricity, heat, or steam by an organization. These emissions occur outside the organization's boundaries but are associated with its activities. These are typically generated by external sources, such as power plants that supply electricity to the organization.

Greenhouse gas emissions that occur indirectly from the activities of an organization but are a consequence of its operations. Scope 3 emissions include all emissions from sources not owned or directly controlled by the organization, such as those from purchased goods and services, transportation, and waste disposal.

The ethical duty of individuals, organizations, and businesses to act in ways that benefit society at large. This involves considering the social impacts of decisions, supporting communities, and promoting positive change.

A set of guidelines or principles that outline the expectations and requirements for suppliers social, environmental, and ethical practices. It helps ensure that suppliers align with a company's sustainability goals and values.

The network of organizations, activities, resources, and technologies involved in the creation and distribution of a product or service. It encompasses all stages from raw material extraction to end-user consumption.

Development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs. It balances social, economic, and environmental considerations to ensure long-term well-being.