Frequently Asked Questions

Historically, the term has gone through several stages: Carl von Carlowitz first mentioned it in 1732, calling for sustainable forest use. His idea of sustainability also included the overuse of renewable resources, resource conservation, substitutes, and a minimum standard of justice at the state level. The United Nations’ Brundtland Report of 1987 defined sustainable development as development that meets the needs of the present without compromising future generations’ ability to meet their needs. The 1992 United Nations Conference on Environment and Development in Rio de Janeiro led to Agenda 21, a guidance document for sustainable development encompassing the three-pillar model of ecology, economy, and social aspects. The model states that sustainable development can only be achieved through simultaneous and equal implementation of environmental, social, and economic goals.

Source: t3n. Achieving Climate Goals – Strategy Workbook for Companies (2024)

In business, sustainability is now defined by the de facto standard of three factors: Environmental, Social, and Governance (ESG).

E for Environmental refers to the natural environment and includes climate change, biodiversity protection, and responsible resource management.

S for Social refers to social responsibility and includes the social impacts a company or organization has on the community. This includes human rights, working conditions, workplace health and safety, and promoting diversity and equal opportunities.

G for Governance refers to how a company or organization is managed and controlled. Good governance ensures transparency, accountability, and effectiveness while minimizing the risk of misconduct and corruption. These three components cannot be viewed in isolation as they are interdependent and influence each other.

The greenhouse effect is a natural process in Earth’s atmosphere. Greenhouse gases like water vapor, carbon dioxide, and methane allow sunlight to reach Earth’s surface but absorb some of the heat radiated back and reflect it. This increases the average temperature of the lower atmosphere and Earth’s surface. Since industrialization, human activities like burning fossil fuels have drastically increased greenhouse gas concentrations in the atmosphere. This anthropogenic enhancement of the natural greenhouse effect leads to accelerated global warming and is the main cause of current climate change.

What describes the Global Warming Potential (GWP)?
GWP describes a greenhouse gas molecule’s influence on global warming. The GWP for carbon dioxide (CO₂) is defined as 1 (see “What are CO₂ equivalents?”). For example, SF6 has a 23,500 times higher impact on global warming than CO₂.

GWP measures how much heat a greenhouse gas molecule traps in the atmosphere. Carbon dioxide (CO₂) is used as the baseline with a GWP of 1 (see “What are CO₂ equivalents?”). For instance, SF6 traps 23,500 times more heat than CO₂.

Carbon dioxide (CO₂) is the most well-known greenhouse gas. In Germany, 87.1 percent of greenhouse gas emissions are CO₂. Every company emits greenhouse gases (directly or indirectly). These emissions result from business activities like production processes or business travel. The consolidated greenhouse gas emissions, stated in CO₂ equivalents (CO2-eq), describe company-wide or product-specific emissions. CO₂ is used as the baseline for calculating human impacts on climate change.

Besides carbon dioxide (CO₂), methane (CH4), nitrous oxide (N₂O), and hydrofluorocarbons (HFCs) are classified as greenhouse gases. They have a higher Global Warming Potential (GWP) than CO₂ and therefore contribute more strongly to global warming.

CO₂ equivalents (CO2-eq) are a standardized unit for evaluating and comparing different greenhouse gases’ climate impact. They enable uniform calculation of emissions and compensation measures. Carbon dioxide (CO₂) serves as the reference value, with other gases’ greenhouse potential expressed relative to CO₂ over a set period. This considers the gases’ heat absorption capacity and atmospheric residence time. The ratio of one unit CO₂ is 1:1 to one unit CO2-eq. The ratio to methane is 1:28 and to SF6, a hydrofluorocarbon (HFC), even 1:23,500.

The terms “climate neutrality” and “greenhouse gas neutrality” or “net-zero emissions” are often used synonymously. However, there are differences. The Intergovernmental Panel on Climate Change (IPCC) and the Federal Environment Agency define the terms as follows:

Climate neutrality:
“Concept of a state in which human activities have no net effect on the climate system. […]”

Net-zero emissions/greenhouse gas neutrality:
“Net-zero emissions are achieved when anthropogenic greenhouse gas emissions (e.g., CO₂) are balanced globally by anthropogenic removals over a specified period.”

Therefore, greenhouse gas neutrality is a prerequisite for climate neutrality.

Source: t3n. Achieving Climate Goals – Strategy Workbook for Companies (2024)