This glossary contains the definitions of terminology used throughout the Corporate Emissions Reduction Transparency (CERT) report 2023. Please note, the bolded terms in the definition column are also defined terms within this glossary.
| Term | Definition |
|---|---|
| Australian carbon credit unit (ACCU) | The units in which transactions between the Buyer and Seller take place. Transactions of ACCUs occur through the Australian National Registry of Emissions Units (ANREU). ACCUs are credits that represent one tonne of verified carbon emissions or equivalent abatement achieved by eligible offsets projects. ACCUs are created and issued by the Clean Energy Regulator (CER) in accordance with Section 147 of the Carbon Farming Initiative (CFI) Act. |
| Australian National Registry of Emissions Units (ANREU) | The registry in which all transactions of Australian carbon credit units (ACCUs) take place. A Seller must have an Australian National Registry of Emissions Units (ANREU) account to participate in the Emissions Reduction Fund (ERF). |
| Base period | The nominated year or years for which a company's base period emissions and electricity use is measured. In the Corporate Emissions Reduction Transparency (CERT) report, a base period may be used to measure a participating company’s progress on its commitment/s. See section 8 of the CERT report guidelines to find out how the CERT report calculates progress from a base period. |
| Calendar year reporting | Calendar year reporting requires a company to either provide multipliers to estimate unreported calendar year emissions by scaling financial year data reported under the National Greenhouse and Energy Reporting (NGER) scheme, or provide independently assured calendar year data. Calendar year base period information is calculated using averages of the relevant consecutive financial years or is provided by the company with independent assurance. See section 7.2 of the Corporate Emission Reduction Transparency (CERT) report guidelines for how a company reports calendar year emissions and electricity use based on independently assured data. See section 7.4 of the CERT report guidelines for how the CERT report derives calendar year emissions and electricity use from NGER data. |
| Carbon dioxide equivalent (CO2-e) emissions | A measure of greenhouse gas emissions. Carbon dioxide equivalence is estimated by multiplying the amount of gas by the global warming potential of the gas. |
| Carbon Disclosure Project (CDP) | A not-for-profit charity that runs a global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. |
| Certified Emission Reductions (CERs) | A unit issued for emissions reduction activities undertaken outside of Australia, pursuant to Article 12 of the Kyoto Protocol and subsequent agreements under the United Nations Framework Convention on Climate Change. |
| Clean Energy Regulator (CER) data verified commitment | A commitment where the participating company’s emissions, energy and progress data has been calculated and verified by the CER for activities occurring in Australia. See section 3.3 of the Corporate Emission Reduction Transparency (CERT) report guidelines for further information on how data verified commitments are defined. |
| Climate Active Carbon Neutral Standard for Organisations | A voluntary standard to manage greenhouse gas emissions, achieve carbon neutrality and seek Climate Active certification. It provides best-practice guidance on how to measure, reduce, offset, validate and report emissions that occur as a result of an organisation's operations. |
| Combined net and gross commitment | A commitment where progress is calculated based on the participating company’s gross emissions and net emissions (includes eligible units and certificates) compared to their nominated base period. See section 8.2 of the Corporate Emissions Reduction Transparency (CERT) report guidelines for how progress is calculated in the CERT report. |
| Commitment | A published statement by a participating company which identifies the steps it is taking to reduce emissions and/or consume renewable electricity. Commitment as a term may include but is not limited to: aim, ambition, aspiration, commitment, goal, projection, intention, target, trajectory. |
| Company assured commitment | A commitment where the participating company’s emissions and energy data has not been calculated and verified by the Clean Energy Regulator (CER). Company assured commitments may apply to a participating company’s Australian, regional or global operations. See section 3.5 of the Corporate Emissions Reduction Transparency (CERT) report guidelines for further information on how company assured commitments are defined. |
| Controlling corporation | An entity that must register and report under the National Greenhouse and Energy Reporting Act 2007, as defined in section 7 of the Act. A controlling corporation is a constitutional corporation that does not have a holding company in Australia (section 7 National Greenhouse and Energy Reporting Act 2007). It is generally the corporation at the top of the corporate hierarchy in Australia. It can be a 'non-operational' holding company. It may also be a foreign incorporated entity that operates directly in Australia (that is, does not operate through an Australian incorporated subsidiary). Controlling corporations have reporting responsibilities under the National Greenhouse Energy Reporting (NGER) legislation. |
| Corporate Emissions Reduction Transparency (CERT) report | An annual report prepared and published by the Clean Energy Regulator (CER) using its data holdings and the data submitted voluntarily by participating companies. The CERT report uses a reporting framework to allow eligible National Greenhouse and Energy Reporting (NGER) scheme reporters to opt in and publish information about their commitments, progress, eligible unit surrenders, net emissions and renewable electricity consumption. |
| Corporate Emissions Reduction Transparency (CERT) report guidelines | The rules that govern participation in the CERT report. |
| Eligible units and certificates | Units and certificates eligible for inclusion in the CERT report against a participating company’s gross emissions. See section 4.1 of the CERT report guidelines for further information. |
| Eligible renewable electricity | Renewable electricity eligible for recognition in the Corporate Emissions Reduction Transparency (CERT) report. This includes voluntary Large-scale generation certificates (LGCs) surrendered, on-site renewable electricity consumption where the generation is not credited with LGCs, GreenPower purchases, the share of imported electricity considered renewable under the Large-scale Renewable Energy Target (LRET) and jurisdictional surrenders. See section 6.1 of the CERT report guidelines for further information. |
| Emissions intensity | A measure of the quantity of emissions generated per unit of product, activity, or some other commodity relevant to a company’s business activity. |
| Emissions intensity reduction commitment | A commitment where the participating company has committed to reduce their scope 1 and/or scope 2 emissions intensity. Progress on these types of commitments can be framed on a 'gross only' basis (excludes eligible units and certificates) or a 'combined net and gross' basis (includes eligible units and certificates). |
| Emissions-intensive trade-exposed (EITE) entity | An entity that conducts EITE activities and has been issued exemption certificates under the Renewable Energy (Electricity) Act 2000. EITE activities are prescribed in the Renewable Energy (Electricity) Regulations 2001. |
| Emissions reduction commitment | A commitment where the participating company has committed to reduce their scope 1 and/or scope 2 and/or scope 3 emissions. Progress on these types of commitments can be framed on a 'gross only' basis (excludes eligible units and certificates) or a 'combined net and gross' basis (includes eligible units and certificates). |
| Emissions Reduction Fund (ERF) | The Emissions Reduction Fund is a scheme where the Government purchases the lowest cost abatement (in the form of Australian carbon credit units) from a wide range of sources, providing an incentive to businesses, households and landowners to proactively reduce their emissions |
| Equity share reporting | An accounting approach for emissions and energy that reflects a company’s shared ownership in facilities that may or may not be under its operational control. See section 7 of the Corporate Emissions Reduction Transparency (CERT) report guidelines for more information on equity share reporting. |
| Facility | For the purposes of the Corporate Emissions Reduction Transparency (CERT) report, a facility is defined as an activity, or a series of activities, that:
Note: this use of facility in the CERT report is different to other uses on the Clean Energy Regulator website. |
| Financial year reporting | Financial year reporting uses emissions and energy data for the July to June financial year to calculate progress. Calendar year-specific values, such as the Renewable Power Percentage (RPP), are calculated using averages of the relevant consecutive calendar year values. Financial year reporting is used under the National Greenhouse and Energy Reporting (NGER) scheme. See section 7.1 of the Corporate Emissions Reduction Transparency (CERT) report guidelines for more information. |
| Global | Refers to a company’s emissions and/or electricity use resulting from activities occurring both in Australia and internationally. |
| Global Reporting Initiative (GRI) standards | A set of universal and sector-specific standards for organisations to understand and report on their impacts on the economy, environment and people. |
| Greenhouse Gas (GHG) Protocol corporate standard | An accounting and reporting standard developed by the World Resources Institute for the accounting and reporting of seven greenhouse gases covered by the Kyoto Protocol – carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PCFs), sulphur hexafluoride (SF6) and nitrogen trifluoride (NF3). |
| GreenPower | A government accredited renewable energy product offered by most electricity retailers to households and businesses in Australia. It requires GreenPower providers to voluntarily surrender Large-scale generation certificates (LGCs) equivalent to GreenPower purchases made by customers. |
| Gross emissions | Also referred to as ‘absolute’ emissions, gross emissions are a participating company’s total reported scope 1 emissions or scope 2 emissions before any eligible units and certificates have been accounted for. |
| Gross only emissions reduction commitment | A commitment where progress is calculated based on the participating company’s reporting year gross emissions compared to their nominated base period. See section 8.2 of the Corporate Emissions Reduction Transparency (CERT) report guidelines for how progress is calculated in the CERT report. |
| Independently assured commitment | A commitment where the participating company has received independent assurance of the emissions and/or energy data underpinning their progress. See section 3.4 of the Corporate Emissions Reduction Transparency (CERT) report guidelines for further information on how independently assured commitments are defined. |
| Jurisdictional surrenders | Large-scale generation certificate (LGC) surrenders made by a jurisdiction with a renewable electricity target (for example, the ACT Government’s Renewable Energy Target). |
| Large-scale generation certificates (LGCs) | LGCs may be created by power stations who generate electricity from renewable sources. Each certificate represents one megawatt hour of renewable energy generation. |
| Large-Scale renewable energy target (LRET) | Under the Large-scale Renewable Energy Target, liable entities (generally electricity retailers), are required to surrender Large-scale generation certificates (LGCs) equivalent to a percentage of wholesale electricity (relevant acquisitions) they acquire (minus exemptions) as determined by the Renewable power percentage (RPP). |
| Limited assurance engagement | An assurance engagement in which the assurance practitioner reduces engagement risk to an acceptable level. Based on the circumstances of the engagement but where the nature, timing and extent of procedures performed is limited compared with that necessary in a reasonable assurance engagement, and where the risk is greater than for a reasonable assurance engagement. In a limited assurance engagement, the assurance practitioner’s conclusion conveys whether, based on the procedures performed and evidence obtained, a matter(s) has come to their attention to cause them to believe the subject matter information is materially misstated. Refer to Standard on Assurance Engagements ASAE 3000 for further information. |
| Location-based accounting | An emissions accounting approach that calculates electricity emissions, based on the average emissions intensity, of the electricity grid in the state or territory that the electricity consumption occurs. Location-based accounting therefore does not recognise the surrender of Large-scale generation certificates (LGCs) as evidence of renewable electricity use. This is the approach used in the National Greenhouse and Energy Reporting (NGER) scheme. |
| Market-based accounting | An emissions accounting approach that allows total electricity consumption to be reduced by the megawatt hours of eligible renewable electricity consumed by the company, before applying a residual mix factor (RMF) to the residual electricity. Market-based accounting therefore recognises the surrender of Large-scale generation certificates (LGCs) as evidence of renewable electricity use. |
| Megawatt hour (MWh) | A megawatt hour is a measure of electrical energy equivalent to a power consumption of 1,000 kilowatts for one hour. |
| Multipliers (for calendar year adjustments) | Multipliers are scaling values provided by participating companies to estimate calendar year emissions and electricity consumption information for calendar year reporting. Multipliers are applied to relevant National Greenhouse and Energy Reporting (NGER)-reported data. |
| National Greenhouse and Energy Reporting (NGER) scheme | The NGER scheme is a single, national framework for corporations to report on greenhouse gas emissions, energy use and energy production. |
| National Greenhouse and Energy Reporting (NGER) scheme reporter | A corporation required to report under the National Greenhouse and Energy Reporting Act 2007. |
| NGER Reporting year | One of the years for which a person must provide a report under Part 3, 3E, 3F or 3G of the National Greenhouse and Energy Reporting Act 2007. |
| Net emissions | The emissions of a company (scope 1 emissions or scope 2 emissions) after all eligible units and certificates have been deducted from their gross emissions. |
| On-site renewable electricity consumption | Renewable electricity that is produced and consumed on-site by the participating company. This includes renewable electricity below the 1997 eligible renewable power baseline (as defined in the Renewable Energy (Electricity) Act 2000) consumed on-site (if reported). |
| Operational control reporting | An accounting approach for emissions and energy, based on who has operational control of a facility, as defined by section 11 of the National Greenhouse and Energy Reporting Act 2007. |
| Participating company | An eligible National Greenhouse and Energy Reporting (NGER) scheme reporter that opts-in to the Corporate Emissions Reduction Transparency (CERT) report. |
| RE100 | An internationally recognised reporting framework to recognise companies committed to sourcing 100% of their electricity needs from renewable energy sources. |
| Reasonable assurance engagement | An assurance engagement in which the assurance practitioner reduces engagement risk to an acceptably low level in the circumstance that the engagement forms the basis for the assurance practitioner’s conclusion. The assurance practitioner’s conclusion is expressed in a form that conveys their opinion on the outcome of the measurement or evaluation of the underlying subject matter against criteria. For further information, refer to Standard on Assurance Engagements ASAE 3000. |
| Renewable electricity commitment | A commitment where the participating company has committed to sourcing a certain percentage of their electricity consumption from renewable sources. This is demonstrated through the matching and surrender of Large-scale generation certificates (LGCs), reporting of metered consumption of eligible on-site renewable electricity, and other eligible renewable electricity consumption. |
| Renewable Energy Target (RET) | The RET is designed to encourage investment in new large-scale renewable power stations through the Large-scale Renewable Energy Target (LRET), and the installation of new small-scale systems through the Small-scale Renewable Energy Scheme (SRES). |
| Renewable Power Percentage (RPP) | The percentage used to determine the number of Large-scale generation certificates (LGCs) required to be surrendered by liable entities to meet their obligations under the Renewable Energy Target (RET). |
| Reporting boundary | A participating company’s nominated company boundary for which its emissions and electricity use is calculated. Corporate Emissions Reduction Transparency (CERT) report companies may choose to use either operational control reporting or equity-based accounting. |
| Reporting period | The nominated period over which a participating company’s emissions and electricity use are calculated. Corporate Emissions Reduction Transparency (CERT) report participating companies may choose to use either financial year reporting or calendar year reporting. |
| Reporting year | A year for which participating companies must provide a reporting form for the publication of their Corporate Emissions Reduction Transparency (CERT) report. For example, the reporting years for the CERT report 2023 are either the 2021-2022 financial year or the 2022 calendar year, depending on the reporting period chosen by the participating company. |
| Residual emissions | The emissions from electricity use calculated according to market-based accounting, after the surrender of Large-scale generation certificates (LGCs) or the reporting of other eligible renewable electricity is taken into account. |
| Residual mix factor (RMF) | The residual mix factor is used under market-based accounting. It removes the emissions benefit of renewable electricity generation from the emissions factor used in location-based accounting (which includes this benefit). This results in an increase to the relative emissions intensity of a unit of electricity usage compared to the location-based electricity emissions factor. |
| Science-based Targets initiative (SBTi) | An internationally recognised reporting framework to define and promote best-practice emissions reductions and net-zero targets aimed at limiting global warming to 1.5⁰C above pre-industrial levels. |
| Scope 1 emissions | Emissions released into the atmosphere as a direct result of the activity or activities that make up the facility, such as fuel combustion for electricity generation or cement production. |
| Scope 2 emissions | Emissions released into the atmosphere as a direct result of one or more activities that generate electricity, heating, cooling or steam that is consumed by the facility but do not form part of the facility. National Greenhouse and Energy Reporting (NGER) scheme reporting covers both scope 1 and scope 2 emissions. |
| Scope 3 emissions | Emissions, excluding scope 2 emissions, that occur as a consequence of an organisation's activities, but from sources not owned or controlled by the organisation. For example, emissions from the transportation of purchased materials or from the use of sold products and services. |
| Surrender | For the purposes of the Corporate Emissions Reduction Transparency (CERT) report guidelines, surrender is taken to mean any of the following actions in the Australian National Registry of Emissions Units (ANREU) or another unit or certificate registry: the surrender, retirement, cancellation or transfer of units to a permanent holding account. Note: this use of surrender in the CERT report is different to other uses on the Clean Energy Regulator website. |
| Sustainability Accounting Standards Board (SASB) standards | A set of standards for industry-specific sustainability accounting practices. SASB standards are a resource of the International Financial Reporting Standards Foundation. |
| Task Force on Climate-related Financial Disclosure (TCFD) | An internationally recognised reporting framework for corporations to disclose climate-related financial information. |
| Verified Carbon Unit (VCU) | An emissions unit verified by Verra and equivalent to one tonne of carbon dioxide equivalent emissions. |
| Verified Emission Reductions (VERs) | An emissions unit verified by the Gold Standard and equivalent to one tonne of carbon dioxide equivalent emissions. |