Key Terms

Definition: A framework that measures organizational success based on three dimensions: economic, social, and environmental. It emphasizes the need for businesses to consider not only their financial outcomes, but also outcomes related to society and the environment.

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 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.

The effect of an organization's activities on society. Social impact encompasses both positive and negative outcomes and involves considerations such as community development, poverty alleviation, human rights, and social justice.

An assessment conducted by companies or third-party organizations to evaluate suppliers' compliance with social and labor standards. It helps identify any violations, ensure fair and safe working conditions, and promote responsible business practices.

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.

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. Scope 2 emissions are typically generated by external sources, such as power plants that supply electricity to the organization.

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.

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.

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.

The deceptive 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.

The integration of environmentally responsible practices into supply chain activities. It involves considering the environmental impacts of sourcing, production, transportation, and distribution, and implementing measures to reduce resource consumption and emissions.

A movement that advocates for better prices, fair labor conditions, and social sustainability for producers and workers in developing countries. Fair trade certification ensures that products meet specific social, economic, and environmental standards.

A policy approach that holds producers accountable for the environmental impacts of their products throughout their life cycle, including their end-of-life disposal. EPR encourages producers to take responsibility for the collection, recycling, or safe disposal of their products.

A supply chain system in which products and materials are recycled, reused, or remanufactured to minimize waste and maximize resource efficiency. It aims to create a circular flow of materials, reducing the need for raw material extraction.

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.

Achieving a net-zero carbon footprint by balancing carbon emissions with carbon removal or offsetting. Carbon-neutral fashion brands or products strive to minimize their greenhouse gas emissions and offset the remaining emissions through projects such as reforestation or renewable energy initiatives.

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.

Environmental, Social, and Governance. 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.

A certification provided by the nonprofit organization B Lab to businesses that meet rigorous social and environmental standards. B Corps are required to consider the impact of their decisions on various stakeholders, including workers, communities, and the environment.

A certification program that ensures environmentally friendly and safe production processes in the textile and apparel industry. Bluesign certification covers aspects such as resource efficiency, consumer safety, air emissions, and water pollution.