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Impact Glossary – Causeartist
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Glossary
Impact Glossary | Causeartist
Plain language definitions for impact investing, ESG, and sustainable business terms.
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A
Adaptive Reuse
Adaptive reuse refers to the process of repurposing old or underutilized buildings for new, often different functions than originally intended — while retaining much of the structure’s original integ…
Agroecology
Agroecology is a system of agricultural practices that takes its inspiration from natural ecosystems. It is a science, a set of practices, and a social movement that seeks to integrate ecological pri…
Agroforestry
In recent years, the world has witnessed a growing concern for sustainable agricultural practices that not only promote food production but also prioritize environmental conservation. Agroforestry, a…
Aquaculture
Aquaculture is the controlled cultivation of aquatic organisms including fish, shellfish, seaweed, and other aquatic plants and animals for food, conservation, and commercial purposes. Often called a…
B
B Corp Certification
B Corp certification is a third-party credential issued by B Lab , a nonprofit, that verifies a company meets defined standards of social and environmental performance, accountability, and transparen…
Benefit Corporations vs B-Corps
If you’re interested in social and environmental responsibility, sustainable business practices, and supporting a community of like-minded businesses, then you may be wondering about the difference b…
Biochar
Biochar is a carbon-rich, porous material produced from the thermal decomposition of organic matter in an oxygen-limited environment, a process known as pyrolysis. Its roots date back to ancient Amaz…
C
Carbon Border Adjustment Mechanism
The EU’s Carbon Border Adjustment Mechanism (CBAM) is a new policy that will put a price on carbon emissions embedded in imported goods. It is designed to address the risk of carbon leakage, which oc…
Carbon Credit
One carbon credit is equivalent to one metric ton of CO2 (or its equivalent in other greenhouse gases) that has been either removed from the atmosphere or prevented from entering it. Essentially, a c…
Carbon Emissions
In today’s world, carbon emissions have become a pressing global issue that demands our immediate attention. The release of greenhouse gases, particularly carbon dioxide (CO2), into the atmosphere is…
D
Decarbonization
Decarbonization is the process of reducing carbon intensity , particularly in energy systems and industrial processes. This involves shifting away from fossil fuels (like coal, oil, and natural gas)…
Deforestation
Forests are among the most vital ecosystems on Earth. They store carbon, regulate the climate, provide fresh water, and shelter an incredible diversity of species. Yet, despite their value, forests a…
Direct Air Capture
Direct Air Capture (DAC) is an innovative climate technology designed to remove carbon dioxide (CO₂) directly from the atmosphere. Unlike traditional carbon capture methods that capture emissions at…
E
Eco-Friendly
In today’s world, where the consequences of climate change and environmental degradation are widely recognized, the term “eco-friendly” has gained immense popularity. However, it is often used as a b…
Ecological Footprint
Our ecological footprint is a measure of the resources we consume and the waste we generate, is a vital indicator of our sustainability. As we face unprecedented challenges to our climate and resourc…
Ecological Restoration
Ecological restoration encompasses a range of practices focused on reviving ecosystems, including forests, wetlands, grasslands, and marine habitats. It aims to address the negative impacts of human…
F
Fair Trade Coffee
Fair Trade coffee is a type of coffee that is certified to have been produced using fair trade standards. Fair trade coffee is made with beans that are grown and harvested in a way that meets certain…
Fast Fashion
Fast fashion refers to the business model of mass producing inexpensive, low quality, on-trend garments at a rapid pace. It prioritizes speed and affordability over quality and sustainability. “Fast…
G
Green Bond
Green bonds have gained significant traction as a means to mobilize capital for environmental projects and foster sustainable investments. Green bonds are fixed-income securities, similar to traditio…
Green Hydrogen
Green hydrogen is hydrogen gas that is produced through a process called electrolysis. This process uses electricity to split water into hydrogen and oxygen. When the electricity used in this process…
Greenwashing
Greenwashing refers to the practice where companies falsely advertise or exaggerate their environmental efforts to make their products appear more eco-friendly than they actually are. The term combin…
H
Hydropower
Hydropower, also known as hydroelectric power, is energy generated by using the flow of water. Unlike fossil fuels, which emit greenhouse gases and pollutants, hydropower is a renewable energy source…
I
Impact Investing
A recent report released by Domini Impact Investments presents an amazing inside look into the current state of global impact investing and how asset managers and investors across the world are looki…
In-Kind Donations
In-kind donations are non-cash gifts made to nonprofits. They can include goods, services, or expertise. In the realm of philanthropy, monetary contributions often take the spotlight, but there is an…
L
Life Cycle Assessment
In today’s world, where sustainability and environmental consciousness are at the forefront, Life Cycle Assessment (LCA) has emerged as a valuable tool. LCA allows us to evaluate the environmental im…
Long-Duration Energy Storage
When the sun goes down or the wind falls silent, renewables like solar and wind still need to keep the lights on. Enter long-duration energy storage, an emerging class of technologies that can store…
M
Microfinance
Microfinance is a financial service aimed at providing small loans, savings options, insurance, and other basic financial products to individuals or small businesses, particularly those who may not h…
Microplastics
Microplastics are solid plastic particles, typically composed of synthetic polymers, measuring less than 5 millimeters in diameter. They are persistent environmental contaminants that do not biodegra…
Monitoring Reporting and Verification
Monitoring, Reporting, and Verification(MRV) refers to a systematic approach that organizations and governments use to track, document, and authenticate data related to emissions and other environmen…
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Natural Capital
Natural capital is the world’s stock of natural resources, which includes geology, soils, air, water and all living organisms. Some natural capital assets provide people with free goods and services,…
Nature-Based Solutions
In an era dominated by environmental challenges and the need for sustainable solutions, the concept of Nature-Based Solutions (NBS) has gained significant attention. NBS refers to utilizing the inher…
P
Plant-Based Materials
Derived from renewable resources, plant-based materials offer a sustainable and environmentally friendly alternative to traditional materials. Every year, millions of tons of plastic end up in our oc…
R
Recycled Plastic (rPET)
Plastic waste has become one of the most pressing environmental challenges of our time. Every year, more than 400 million tons of plastic are produced worldwide, and less than 10% is recycled accordi…
Regenerative Agriculture
Regenerative agriculture is a farming practice that aims to restore and improve the health of soil, water, and ecosystems, while also producing food and fiber. This approach is gaining popularity as…
Renewable Materials
promoted Causeartist BackOffice Your Mission-Aligned Operations Team From investor-ready financials to growth strategy, HR, compliance, and custom software—Causeartist BackOffice is your all-in-one o…
S
Scope 1 Carbon Emissions
In the pursuit of global sustainability goals, it is crucial for us to have a comprehensive understanding of carbon emissions and their associated scopes. In particular, Scope 1 carbon emissions play…
Scope 2 Carbon Emissions
In today’s rapidly changing world, where environmental concerns take center stage, the topic of carbon emissions and their impact on the climate has become increasingly important. One aspect of carbo…
Scope 3 Carbon Emissions
What are Scope 3 Emissions? Understanding the Scope 3 Categories Why Scope 3 Emissions Matter Addressing Scope 3 Emissions When it comes to combating climate instability and reducing carbon footprint…
T
The Non-Financial Reporting Directive
The Non-Financial Reporting Directive (NFRD) is a directive established by the European Union , which mandates large companies and select organizations to disclose their environmental, social, and go…
Triple Bottom Line
The Triple Bottom Line (TBL) business model is a framework that encourages companies to measure their success in three key areas: economic, social, and environmental. By focusing on all three areas,…
U
Upcycled
At its core, upcycled products are a creative and eco-friendly means of reusing materials or items to grant them a fresh lease of life, elevating their value. Unlike recycling, where materials are br…
V
Vegan Leather
Leather is a material that has been used for thousands of years for its durability, strength, and flexibility. However, in recent years, there has been a growing demand for more ethical and sustainab…
Venture Philanthropy
promoted Causeartist BackOffice Your Mission-Aligned Operations Team From investor-ready financials to growth strategy, HR, compliance, and custom software—Causeartist BackOffice is your all-in-one o…
Vertical Farming
Vertical farming has emerged as a revolutionary approach to agriculture, addressing the growing need for sustainable and efficient food production in the face of urbanization, climate change, and res…
W
Waste-to-Energy
Waste-to-Energy (WtE) is the process of converting non-recyclable municipal solid waste (MSW) into usable forms of energy, most commonly electricity, heat, or transportation fuel. Rather than sending…
Water Conservation
As the global population continues to rise and climate instability threatens water availability, the need for water conservation has never been more urgent. Let’s dive into the significance of water…
Z
Zero Waste
Zero Waste is a sustainable lifestyle and philosophy that seeks to minimize waste by encouraging the reuse, recycling, and redesigning of products. It promotes a circular economy , which reduces the…
Biodiversity
Biodiversity is the foundation of life on Earth. From the tiniest microbes to towering forests, and from pollinating insects to migratory whales, the diversity of life forms sustains the health of ec…
Bioplastics
Bioplastics are a type of plastic made from renewable biomass sources, such as corn starch, sugarcane, or vegetable oils, as opposed to fossil fuel-based feedstocks used in conventional plastics. Acc…
Blended Finance
Blended finance is the strategic use of concessional or public capital to attract private investment into projects that deliver measurable social or environmental outcomes. In simple terms, it uses l…
Blue Economy
The Blue Economy refers to the sustainable use of ocean resources for economic growth, improved livelihoods, and ocean ecosystem health. It recognizes the ocean as a source of value beyond extraction…
Blue Economy
The Blue Economy is a concept that has gained significant attention in recent years as nations and industries recognize the immense potential of the ocean while striving for sustainability. It refers…
Buy-One-Give-One Model(BOGO)
The Buy-One-Give-One Model(BOGO) model operates on a simple yet impactful premise: for every product sold, a company donates an equivalent product or service to those in need. Brands like TOMS and Wa…
Carbon Footprint
Living in an era where the consequences of climate instability are becoming increasingly evident, it is crucial for individuals, communities, and nations to take responsibility for their environmenta…
Carbon Insetting
Carbon insetting is a strategy where businesses and organizations focus on reducing their carbon footprints by integrating climate-friendly measures within their operations and supply chains. Unlike…
Carbon Neutrality
Carbon neutrality, often referred to as climate neutrality or net-zero emissions, is a state in which an entity, be it an individual, organization, or even a country, balances its greenhouse gas (GHG…
Carbon Offset
A carbon offset is a reduction in greenhouse gas emissions—such as carbon dioxide (CO₂)—that compensates for emissions made elsewhere. The goal is to “offset” or “neutralize” the amount of carbon dio…
Carbon Sequestration
As the impacts of climate change become increasingly apparent, there is growing interest in ways to remove carbon dioxide (CO2) from the atmosphere. One method for doing this is called carbon sequest…
Catalytic Capital
Catalytic capital refers to investment capital that accepts higher risk, lower returns, or longer time horizons in order to support projects that create social or environmental benefit. It is usually…
CDFIs
Think it’s a myth that you can make a societal impact while generating a financial return? Impact investing doesn’t have to be about trading a financial loss for a social gain. In fact, it can be an…
Circular Economy
The circular economy is an innovative approach that aims to shift our traditional linear model of production and consumption towards a regenerative and sustainable system. Below, we will delve deep i…
Climate Intelligence
Climate Intelligence (CI) refers to the collection, analysis, and application of data and insights related to climate patterns, environmental changes, and their impact on ecosystems, economies, and s…
Coastal Erosion
Coastal erosion is the gradual wearing away of land along coastlines due to natural forces like waves, tides, and human activities. This phenomenon threatens homes, infrastructure, and ecosystems, ma…
Conscious Consumerism
Conscious consumerism is an emerging trend in which consumers make informed decisions about their purchases to bring about positive change in society, the economy, and the environment. It involves mi…
Corporate Sustainability Reporting Directive
The Corporate Sustainability Reporting Directive (CSRD) is a new directive that aims to improve the quality and comparability of corporate sustainability reporting in the European Union. The CSRD was…
Cradle-to-Cradle Design: Definition and Examples
Cradle-to-Cradle Design is a framework for creating products with the end of their life in mind — but in a positive, regenerative way . The idea is simple: 🌱 Everything should either return to natur…
Direct Ocean Capture
Direct Ocean Capture (DOC) is gaining attention as an innovative solution in the fight against climate change. By removing carbon dioxide (CO₂) directly from ocean waters, DOC technology offers a new…
Distributed Energy Systems
In the face of pressing environmental challenges and the urgent need for a transition to renewable energy , distributed energy systems have emerged as a promising solution. By decentralizing energy g…
Donor Advised Fund
Philanthropy plays a vital role in addressing societal challenges, and one powerful tool that has gained significant popularity in recent years is the Donor Advised Fund (DAF). This innovative vehicl…
Ecosystem Services
Ecosystem services are the benefits that nature provides to humans. They include provisioning services, such as food and water; regulating services, such as climate regulation and flood control; cult…
Emissions Trading
Emissions trading is an environmental policy tool designed to control pollution by setting a cap on the total allowable emissions and creating a market for emission permits. Companies are allocated o…
ESG
ESG stands for environmental, social, and governance. It is a framework for evaluating how companies manage their environmental, social, and governance risks and opportunities. ESG investing is the p…
EWG Verified
EWG Verified is a certification awarded by the Environmental Working Group to products that meet the highest safety and transparency standards. The EWG is a non-profit organization dedicated to resea…
Slow Fashion
Slow fashion is a movement that encourages a more mindful and sustainable approach to fashion consumption. It is an alternative to the fast fashion model, which produces a high volume of cheap clothi…
Social Entrepreneurship
Social entrepreneurship is a term used when referring to a business model that has a social or environmental focus. A social entrepreneur is an individual who pursues opportunities to create social a…
Socially Responsible Investing
Socially responsible investing (SRI) is an investing strategy that aims to generate both social change and financial returns for an investor. SRI investors consider environmental, social, and governa…
Soil Conservation
Soil conservation encompasses various practices and strategies that aim to prevent soil erosion, degradation, and depletion. It involves the preservation and restoration of soil fertility, structure,…
Supply Chain Transparency
In today’s complex global economy, supply chain traceability is not just a buzzword but a critical business imperative. As consumers become more conscious about the products they purchase and regulat…
Sustainable Economy
The world is grappling with pressing environmental challenges, such as climate change, pollution, and resource depletion. These issues have far-reaching impacts on the economy and will only worsen wi…
Sustainable Fashion
Fashion has always been a reflection of the times, showcasing our culture, values, and aspirations. In recent years, however, the industry has undergone a significant transformation. Sustainable fash…
Sustainable Forestry
To ensure that our forests continue to thrive for generations to come, sustainable forestry practices have become imperative. In this post, we will explore what sustainable forestry is, its key princ…
Sustainable Lifestyle
In recent years, the concept of sustainability has gained significant traction worldwide. As climate change and environmental instability become increasingly urgent issues, more people are embracing…
Synthetic Materials
Synthetic materials are man-made materials that are created from chemical compounds. They are often used in place of natural materials, such as wood, cotton, and leather. These materials have a wide…