What the jargon means
Some sustainability terms are used a lot but rarely explained. Here are some that you might come across.
A
Anti-bribery and corruption
Efforts to prevent giving or receiving bribes, gifts, hospitality or favours that influence business decisions.
Australasian Recycling Label (ARL)
A label on product packaging that helps people understand how to correctly dispose of each part of a package based on local recycling systems.
B
Biodegradable
A vague term that simply means the material can break down eventually, but that may just mean in smaller pieces like microplastics or after centuries. Only trust this term if it’s backed by a certified standard.
Biodiversity
The variety of living things in an area, including plants, animals, fungi and microorganisms, and the ecosystems they form.
C
Carbon footprint
The total amount of GHG emissions caused by your business, both directly (like fuel use or refrigeration leaks) and indirectly (like electricity use, product purchases and freight).
Carbon neutral
When a business buys an equivalent amount of carbon offsets, such as tree planting or renewable energy projects, as its carbon footprint. It doesn’t necessarily mean the business has reduced its emissions.
Certified product
A product that has been independently verified to meet specific environmental, social or ethical standards. Examples include Fairtrade, Forest Stewardship Council (FSC), Organic and B Corp certified products.
Circular product
A product designed to stay in use for as long as possible by being durable, reusable, repairable and recyclable.
Circular or circular economy
A way of designing and running systems so that materials remain in use rather than being disposed of. It’s the opposite of the 'take-make-waste' model.
Climate resilience
The ability of your business to continue operating and recover quickly when affected by climate-related disruptions like floods, heatwaves or supply chain interruptions.
Compostable
Material that breaks down into organic matter under specific composting conditions. 'Home compostable' can break down in a backyard compost bin, while 'commercial compostable' requires an industrial composting facility.
Closed-loop system
A setup where water is reused in a continuous cycle, such as cooling systems that recirculate the same water rather than drawing in new water each time.
Code of conduct
A short guide or policy that sets out the behaviour expected from everyone in the workplace.
Community impact
The effect your business has on the people and places around you. This includes both negative impacts (like traffic or noise) and positive contributions (like jobs and volunteering).
Compostable
Material that breaks down into organic matter under specific composting conditions. 'Home compostable' can break down in a backyard compost bin, while 'commercial compostable' requires an industrial composting facility.
Conflict of interest
When someone’s personal interests (such as family or money) could sway their decisions at work, such as in procurement or approvals.
Corporate governance
The set of rules, practices, processes and responsibilities used to direct and control an organisation's operations and decisions.
Cultural heritage
Sites, practices or objects that hold historical, cultural or spiritual value to a community or Indigenous group. Even those that are not formally recognised may be equally important to locals.
D
Decarbonisation
The process of reducing GHG emissions across your operations and value chain.
DEI (Diversity, Equity and Inclusion)
A workplace approach focused on creating a diverse team, ensuring fair access and treatment for all, and building an environment where everyone feels valued and included.
Due diligence
The checks you do to understand risks in suppliers, partners or investments. This is a fundamental requirement in many responsible business frameworks to take reasonable steps to prevent harm.
E
Eco-friendly, planet-friendly, or natural
These terms are often used to describe chemicals and products but there is no agreed definition. Make sure you view and use them with caution. It’s always better to specify what your products do and do not contain than make vague claims.
Ecosystem
A system of living things (like animals, plants and microbes) and non-living things (like soil, water and climate) that function together in a particular place.
EEO (Equal Employment Opportunity)
The principle that everyone should have the same chance to apply for and succeed in a job, regardless of characteristics like gender, race, age, disability, religion or sexuality.
Electrification
Switching equipment or systems that currently use fossil fuels like gas, petrol or diesel over to ones that run on electricity.
End-of-life
The point when a product or material is no longer used. At this point it can be either disposed of as waste or diverted to a circular use such as resale or recycling.
F
Forever chemicals, or PFAS (perfluoroalkyl and polyfluoroalkyl substances)
A group of synthetic chemicals that don't break down in the environment or the human body. This persistence leads to their accumulation in soil, water and living organisms, including humans.
FSC-certified
Paper or cardboard that comes from responsibly managed forests, certified by the Forest Stewardship Council.
G
Greenhouse gas (GHG) emissions
Release of gases that absorb and trap heat in the atmosphere. They include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O) and a few others. They come from burning fossil fuels, farming, industrial processes, waste, and more.
Greenwashing
Making false or misleading claims about how sustainable your product or business is. It’s often unintentional but can damage your reputation.
Greywater
Wastewater from sinks, showers, washing machines and other sources that can sometimes be reused for irrigation or cleaning, depending on treatment and regulations. This is different from ‘blackwater’, which has hazardous contaminants such as human or animal waste and cannot be reused without specialised treatment.
H
Hazardous substances
Materials that pose a direct and immediate threat to health, safety, or the environment, often due to their physical or chemical properties (like flammability or corrosivity). These require careful storage and use.
Hazardous waste
Waste that could pose risks to people or the environment, such as chemicals, solvents, batteries, clinical waste, or fluorescent lights. It usually requires special handling and disposal.
Human rights
The basic rights and freedoms that belong to everyone, such as the right to fair pay, safe working conditions, freedom from discrimination and the right to collective bargaining.
I
Invasive species
Plants or animals introduced by humans (intentionally or not) that spread rapidly and cause harm to or crowd out native species or ecosystems.
L
Living wage
The income a worker needs to cover basic living costs such as food, housing, healthcare, transport and education, based on local conditions. This is not the same as the minimum wage, which can be much lower depending on the country.
M
Management systems (such as EMS, QMS)
Structured processes and frameworks for managing environmental or quality issues (like ISO 14001 and 9001). They are usually more relevant to medium-sized or high-impact businesses.
Modern slavery
Covers serious exploitation including forced labour, child labour, debt bondage, human trafficking and other situations where people cannot refuse or leave work due to coercion, threats or deception.
N
Natural, eco-friendly, or planet-friendly,
These terms are often used to describe chemicals and products but there is no agreed definition. Make sure you view and use them with caution. It’s always better to specify what your products do and do not contain than make vague claims.
Nature-positive
A general term for actions that aim to halt and reverse nature loss, going beyond reducing harm to actively improve ecosystems.
Net zero
This means reducing your emissions as close to zero as possible, then only using GHG removal offsets for the small amount that’s left. It’s more ambitious than carbon neutral and focuses on cutting emissions first.
Non-toxic or low-toxicity
Substances that either cause zero harm or minimal harm, requiring a high dose or prolonged exposure to produce a toxic effect. This often means they break down easily, don’t contain harsh ingredients, and produce fewer fumes or residues.
Nuisance
Any activity that interferes with the comfort or convenience of others in the community, such as excessive noise, odours, dust, vibration, or blocked access. Nuisance issues can lead to complaints and legal action if not addressed.
P
Planet-friendly natural, or eco-friendly,
These terms are often used to describe chemicals and products but there is no agreed definition. Make sure you view and use them with caution. It’s always better to specify what your products do and do not contain than make vague claims.
Post-consumer recycled (PCR)
Material that has been used and discarded by consumers, then recovered and reused in new material. It’s different from pre-consumer recycled material, which comes from factory offcuts.
Potentially harmful substances
Materials that may not be immediately dangerous but could cause harm to people, animals or the environment if used or disposed of the wrong way or through prolonged exposure.
Product footprint
The total environmental impact of a product across its life cycle, including carbon emissions, water use, pollution, resource extraction, and waste.
Product life cycle
All the phases in the life of a product from extraction of raw material inputs, through production, distribution, use and finally disposal or recycling.
Psychosocial safety
The prevention and management of factors (also known as psychosocial hazards) that can negatively impact an employee's mental health and well-being, such as unrealistic job demands and bullying and harassment.
R
Rainwater harvesting
Collecting and storing rainwater, usually from rooftops, to use for non-drinking purposes like watering gardens or flushing toilets.
Regenerative agriculture
A way of farming that restores soil health, increases biodiversity and improves water cycles, often through low-impact techniques like cover cropping and rotation.
Renewable energy
Energy generated from sources that are constantly replenished, like the sun, wind and water.
Responsible sourcing
Choosing suppliers and products that meet social and environmental criteria, such as fair labour, safe working conditions, and environmental protection.
Runoff
Water, often from rain or washing, that flows over a surface and can carry pollutants like fertiliser, soil, oil or chemicals into drains or natural waterways.
S
Safety data sheet (SDS)
A document that lists important information about a chemical, including how to use it safely, what to do in an emergency, and how to store or dispose of it properly.
Scope 1, 2 and 3 emissions
Categories used to classify a business's GHG emissions. Scope 1 covers direct emissions from sources you own or control (like fuel burned on site or in company vehicles). Scope 2 covers indirect emissions from the electricity you purchase and use. Scope 3 covers all other indirect emissions in your value chain, from suppliers to customer use and disposal of your products.
Scope 3 emissions
Indirect emissions that occur in your value chain, such as from the production of goods you buy, how customers use your products, or how products are transported or disposed of. Your suppliers make up a large part of your scope 3, while you are part of your customers' scope 3.
Secondary containment
A barrier such as a bund, low wall or tray designed to catch leaks or spills from a container or tank, so the substance doesn’t flow into stormwater drains or surface water or spread onto soil.
Service life cycle
The stages a service goes through from planning and delivery to completion and follow-up, including product and material inputs and what happens to them afterwards.
Social licence to operate
The informal approval from the community and stakeholders around your business. It is earned through trust and good behaviour and helps avoid objections to permits, expansions or events.
Stakeholder engagement
Stakeholders are the people affected by or interested in your business activities, like neighbours, councils and community groups, as well as employees, suppliers and customers. Engaging them means actively consulting and involving them in important decisions.
Supply chain
The sequence of activities or suppliers that provide goods or services to your business, including growers, manufacturers, transporters and service providers.
V
Value chain
The full range of an organisation’s upstream (supply chain) and downstream (retail, customer use, end of life) activities, which encompass the full life cycle of a product or service, from its conception to its end use.
Virgin material
Raw material that is extracted directly from the environment rather than previously used, such as newly made plastic or paper.
VOC (volatile organic compounds)
A group of chemicals found in many paints, sprays, adhesives and cleaners. They evaporate into the air and can affect indoor air quality and human health.
W
Water audit
A review of how and where water is used in your business, which helps identify leaks, inefficient systems or areas where savings are possible.
Wellbeing
A broad term for a person's overall physical, mental and emotional health, being 'well' not just 'okay'. In the workplace, it means feeling safe, healthy, supported and satisfied with work
Z
Zero waste
A goal or claim meaning that a business sends no waste to landfill or the environment (including air or water). This usually requires a combination of recycling, composting, and reuse.
What about ‘eco-friendly’, ‘planet-friendly’, or ‘natural’?
These terms are often used to describe chemicals and products but there is no agreed definition. Make sure you view and use them with caution. It’s always better to specify what your products do and do not contain than make vague claims.