Glossary

Frequently used terminology

TERM	ACRONYM	DEFINITION
adaptation and resilience	A&R	Measures or assessments related to protecting communities or ecosystems from the effects of climate change. Adaptation refers to protection, while resilience is the ability to adapt and recover from the impacts of climate change.
agrifood entity		An entity with at least 50% of its revenues generated from agrifood supply chains, which includes, but is not limited to, traders, processors, manufacturers, distributors, and retailers.
agrifood DCF Certified entity		An agrifood entity that has been Certified under Section E of the Climate Bonds Standard.
carbon dioxide equivalent	CO2e	A unit to measure the effect of all greenhouse gases according to their global warming potential that expresses the warming effect of each greenhouse gas over a set period of time (usually 100 years) in comparison to CO2.
Climate Bonds Initiative (Climate Bonds)		Climate Bonds is an independent not-for-profit organisation dedicated to mobilising global capital to deliver climate action.
Climate Bonds Standard (the Standard)	CBS	A robust framework based on international best practice in green finance which defines the processes to be followed and Sector Criteria that must be met to achieve Certification under the Climate Bonds Standard, the current version of which is published on the Climate Bonds website.
concessional finance		Finance including grants, free technical assistance, debt, equity, or guarantees at below-market rates and/or with a grace period for repayments.
decarbonisation pathways		Transformation processes, strategies, or indications to be implemented in the energy sector aiming to reduce emissions and the use of fossil fuels. They involve measures such as shifting the energy mix, increasing energy efficiency, utilising the circular economy, or managing demand for energy.
deforestation- or conversion-free sourcing	DCF sourcing	The requirement that the supply chain of an agrifood entity only includes commodities produced on land that has not been subject to deforestation or the conversion of other natural ecosystems after 31 December 2020.
development finance institution	DFI	A specialised financial institution established to support economic development, majority-owned by government, which can include national development banks (NDBs) and multilateral development banks (MDBs).
do no significant harm	DNSH	The principle of ensuring mitigation efforts and/or other social and environmental objectives do not have negative impacts elsewhere.
Intergovernmental Panel on Climate Change	IPCC	The United Nations body for assessing the science related to climate change.
minimum social safeguards	MSS	Ensure that activities meet basic social standards, particularly with respect to human and labour rights, so that the pursuit of environmental objectives does not preclude social justice.
multilateral development bank	MDB	A supranational financial institution established by a group of countries to finance socioeconomic development in developing countries e.g.,the World Bank, European Bank for Reconstruction and Development (EBRD), and the Inter-American Development Bank (IDB).
net-zero targets		Short-, medium- and long-term targets set by an entity that aims to reduce its scope 1, 2 and 3 net greenhouse gas emissions to zero by 2050.
Paris Agreement		A legally binding international treaty on climate change adopted by 196 parties. Its overarching goal is to hold the increase in the global average temperature to well below 2°C above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels.
resilience		The capacity of social, economic, and environmental systems to cope with climate related hazardous events, trends or disturbances, responding or reorganising in ways that maintain their essential function, identity, and structure, while also maintaining the capacity for adaptation, learning, and transformation.
scope (of emissions)		Scope 1, 2, and 3 are terms devised by the GHG Protocol to categorise the different sources of carbon emissions an organisation creates in its own operations, and in its wider value chain.
Sector Criteria		Sector-specific criteria for the eligibility of specific projects, assets, activities and/or entities under the Climate Bonds Standard.
second-party opinion	SPO	Provides an independent assessment of the sustainability quality of a bond, loan or framework.
sustainability-linked debt	SLD	Any debt instrument for which the financial and structural characteristics depend on the issuer achieving predefined sustainability/ESG objectives, measured through predefined KPIs and assessed against predefined performance targets.
transition finance		Any form of financial support to high-carbon companies intended to finance the implementation of their short-, medium- and long-term plans to achieve net zero.
technical working group	TWG	A group of experts from academia, international agencies, industry, and NGOs convened by Climate Bonds that develops Sector Criteria.
use-of-proceeds debt instruments	UoP instruments	The proceeds of UoP instruments are allocated to environmentally beneficial projects, assets, activities, or expenditures.