Glossary

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Agenda 21

“An action programme intended to put into practice the principles and aims of sustainable development defined in Rio (92) at the Second Earth Summit organised under the aegis of the United Nations. It encourages cities and other local authorities to take ownership of and implement policies aimed at satisfying the needs of current generations without compromising to any extent the ability of future generations to meet theirs. "{23}

Annexe B – Kyoto Protocol

“Annex to the Kyoto Protocol that sets quantified commitments for reducing or curbing greenhouse gas emissions for a list of countries very similar to that in Annex I. For each country, this annex contains its average emission quota for the 2008-2012 period stated as a percentage of its 1990 emissions.” {6} Comment: The Annex I (Convention) and Annex B (Kyoto Protocol) lists were slightly different but have evolved during the various ratification processes (see the Convention Secretariat’s web site for an updated list of signatories): • Countries present in Annex I the Convention signed in Rio in 1992, but not in the Kyoto Protocol of 1997: Belarus, Czechoslovakia, Turkey. • Countries absent from Annex I of the Convention, but added to the Kyoto Protocol: Croatia, Liechtenstein, Monaco, Slovakia, Slovenia.

Annexe 1 – Kyoto Protocol

“Protocol to the Framework Convention on Climate Change listing the countries (or Parties) due initially to cut their emissions of greenhouse gases in the year 2000 to their 1990 level. This list includes most of the OECD member countries, and a series of European transition economy countries.” {6}

Biological diversity

According to the Convention on Biological Diversity: “the variability among living organisms from all sources including, inter alia, terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are part; this includes diversity within species and of ecosystems.” {22} “Variety of species, genetic variability among each species, and variety of ecosystems that form species” (Canadian council of ministers responsible for fauna). {3}

Biomass

“Dry weight of all organic material, dead or living, above or below the Earth’s surface.” {24}

Brundtland report entitled “Our common future”

The Norwegian Environment Minister, then Prime Minister, Gro Harlem Brundtland chaired the World Commission on the Environment and Development of the United Nations that published the report entitled “Our common future” in 1987. This report served as the basis for the Rio Conference and defined the term of sustainable development, which was previously used by UICN. {10}

Biotechnologie [biotechnology]

Selon la Convention pour la Diversité Biologique : "toute application technologique qui utilise des systèmes biologiques, des organismes vivants, ou des dérivés de ceux-ci, pour réaliser ou modifier des produits ou des procédés à usage spécifique."{36} "Mise au point de produits par un processus biologique. La production peut se faire à l'aide d'organismes intacts (p. ex levures et bactéries) ou de substances naturelles (p. ex. enzymes) tirées d'organismes." {38}

Certification (forest)

“Market instrument designed to promote sustainable forestry development as a function of environmental, economic and social factors. It provides for the independent assessment of forestry development in line with internationally (or nationally) recognised standards, as well as the supervision of the sale of forestry products. If the forest is developed in accordance with a set of precise standards and its wood products are overseen and accounted for at every stage of the production line, it may be awarded certification recognised on the market.” {24}

Certification

“What is certification?” Certification consists in confirming that a product complies with a benchmark, which may be a standard, an approval or a particular regulation. Certification is provided by an agency”. “Accreditation that the quality assurance system of a business complies with the ISO 9001 standard.”

Civil society

“Individuals and groups, both organised or not, acting in concerted fashion in social, political and economic areas and to which formal and informal laws and rules are applied. Civil society offers a profusion of prospects and values, which attempt to gain public expression. {6}

Climate change

“Warming in the Earth’s atmosphere owing to the increased concentration of certain gases absorbing the Earth’s radiation and thereby delaying the loss of energy to space.”{3} “Climate change means any changes in climate attributed directly or indirectly to human activity altering the composition of the Earth’s atmosphere and compounding the natural variability of the climate observed during comparable periods.” Article 1 {8}

Cogeneration

“Cogeneration refers to a set of techniques simultaneously generating thermal energy, which is recovered in the form of hot gases or steam and used for heating, mechanical energy, the latter generally being used to generate electricity by coupling it to an alternator. The simultaneous use of heat and mechanical energy may make for very high energy yields of around 80% and even as high as 90%, which are well in excess of those obtained through separate generation of electricity and heat. Cogeneration permits appreciable savings in primary energy.” {9}

Domini 400

“Index of socially responsible stocks, i.e. the 400 major firms selected on account of their ethical behaviour. Constructed by Any Domini in 1990, it focuses on stocks listed in the United States." {23}

Dow Jones Sustainability Group Index

“Group of global indices set up in September 1999 that selects companies from among the 2000 largest-cap stocks companies with the best performances in terms of sustainable development by calling on the expertise of Zurich-based asset management company SAM. One year after its creation, it incorporated 263 businesses, representing 61 industrial sectors in 27 different countries, with total market capitalisation of over $5,000 billion. {23}

Ecological footprint, appropriated carrying capacity

“The land and water necessary to support indefinitely the material living standards of a given human population using existing technology.” {2} “The method for calculating the ecological footprint is based on two facts: it is possible to keep a record of most of the resources used and waste (national and imported) produced, most of the resource and waste management flows may be translated into the biologically productive surface required to produce them. A hundred products and resources are used in the calculation of each country’s ecological footprint.” {11}

Ecosystem

“A basic functional unit in ecology, representing the dynamic combination of two constantly interacting components: a physical and chemical, geological and climatic (biotope) environment and a set of characteristic living organisms (biocenosis).”{12} According to the Convention on Biological Diversity: “a dynamic complex of plant, animal and micro-organism communities and their non-living environment interacting as a functional unit.”{22} “A dynamic system of plants, animals and micro-organisms and their non-living environment interacting as a functional unit”. {24}

Emission quota

“The proportion or share of acceptable global emissions set for a country or a group of countries in connection with a cap on total emissions and obligatory resource allocations or an evaluation.” {28}

Emissions trading

“This mechanism (established in Article 17 of the Kyoto Protocol) enables an Annex B country, which has reduced its greenhouse gas emissions beyond its target level to sell to another Annex B country the emission permits that it has not used, instead of carrying them forward to a subsequent commitment period. The buyer can use this mechanism only on a complementary basis to domestic measures.” {6} “The principle of markets for emission permits consists in allocating polluters (states at international level, and businesses at national level) free of charge, at a fixed price or through auctions CO2 emission quotas, which may then be traded. Each CO2 issuer must then make sure that it has sufficient permits to cover its emissions. Otherwise, it is obliged either to reduce its emissions or to purchase permits. Conversely, if its efforts to control its emissions leave it with surplus permits, it may put them up for sale.”

Employee investment fund

Mutual reserved for employee savings. Comprising units purchased using employee savings (profit-sharing, incentive plans, discretionary payments), these collective investment vehicles are co-owned by employees that own shares. These are negotiable securities: equities, bonds, SICAV units, corporate securities, etc.” {23}

Employee savings

“Term covering three different items: profit-sharing, incentive plans and corporate savings plans (PEE). The latter enable employees to build up at their discretion a portfolio of securities exempt from income tax and capital gains tax on these investments, provided that the predetermined lock-up period for the funds is observed. The new French law on employee savings states that collective investment vehicles into which the funds collected by corporate and inter-Group savings plans, and the voluntary employee savings partnership plans are channelled are obliged to report annually insofar as they take social, environmental and ethical factors into account in the selection, holding and liquidation of securities.” {23}.

Environmental auditing

“Systematic, documented verification process of objectively obtaining and evaluating verifiable information, records or statements of fact to determine whether specified environmental activities, events, conditions, management systems, or information about these matters conform with policies, practices or requirements, and communicating the results of this process to the client.” {4}

Environmental impact assessment (EIA), environmental assessment and review process

“An environmental impact assessment is a systematic process of identifying, forecasting, evaluating and mitigating the physical, aesthetic, social and cultural effects of a major project that may significantly affect the environment. It is carried out prior to any major decision or commitment." {15} “Systematic procedure for evaluating the impacts of projects, initiatives and their possible alternative options that may significantly affect the natural, social or constructed environment and possible means of mitigating the corresponding negative consequences." {16}

Environmental management system (EMS)

“Part of the overall management system that includes organisational structure, planning, activities, responsibilities, practices, procedures, processes and resources for developing, implementing, achieving, reviewing, and maintaining the environmental policy.” (ISO 14001:1996)

Global Reporting Initiative (GRI)

“The Ceres initiative launched in autumn 1997 to establish through universal, voluntary and multilateral action the foundations for standardised (or uniform) reports via the sustainability of businesses around the world and through implementation of three instruments: (1) A set of core metrics intended to be applicable to all business enterprises; (2) Sets of sector-specific metrics for specific types of enterprises; (3) A uniform format for reporting these metrics and information integral to a company's sustainability performance.” {7}

Governance

“Governance may be regarded as the exercise of economic, political and administrative authority with a view to managing a country’s affairs at all levels. It encompasses the mechanisms, processes and institutions through which citizens and groups state their interests, exercise their legal rights, assume their obligations and to which they turn with a view to settling their differences. Good governance is notably characterised by participation, transparency and responsibility. Efficiency and equity are two additional features. It ensures the primacy of law. Good governance ensures that political, social and economic priorities are based on a broad consensus across society and that the voices of the most underprivileged and most vulnerable can be heard in relation to decisions made concerning the allocation of the requisite resources for development.” {5}

Green building, ecohouse, environmentally sound and affordable construction (“Haute qualité environnementale (HQE)”)

The environmental quality of a building reflects its characteristics, its infrastructure (products and services) and the rest of the land it occupies, the construction or adaptation of the building that confers on it the aptitude to satisfy the need to control impacts on the external environment and to create a comfortable and healthy internal environment.” {17} “The environmental quality of a building is its ability to conserve natural resources and to satisfy occupants’ needs for comfort, health and quality of life. An aptitude it acquires by factoring in environmental quality at each stage of its existence: planning, design, construction, use, etc. then possibly rehabilitation, refurbishment and demolition. Environmental quality consists in: • saving natural resources: energy, water, soil, raw materials, etc. • reducing external air, water and soil pollution. • cutting production of waste, particularly end waste. • lowering noise pollution. • promoting the integration of buildings within their location. • ensuring healthy and comfortable living conditions inside the buildings. These objectives reflect the current concerns of decision-makers and users.” {18}

Green tax (environmental tax)

“Ecotaxes are taxes on a product that is targeted owing to the ecological damage that it is deemed to generate. According to this definition, ecotax is a fiscal policy increasing the cost of products for which economically acceptable alternatives deemed more environmentally friendly exist on the market. Their objective is to encourage consumers to opt for recyclable and reusable products that cause less pollution. " {13}

Greenhouse effect

“Warming of the atmosphere (and the Earth’s surface) caused by the fact that certain gases absorb the infrared radiation given off by the Earth and send it back in part towards its surface. This effect is a natural phenomenon compounded by the anthropogenic (i.e. attributable to human activities) emissions of carbon dioxide and other greenhouse gases.” {6} “The greenhouse effect is primarily a natural phenomenon by which the Earth’s atmosphere traps on the surface of our planet the heat radiation emitted by the Earth as a result of the effect of the sun’s rays. The problem is actually the anthropogenic accentuation of the greenhouse effect. Human activities are altering the composition of the atmosphere, increasing the greenhouse effect. The principal agents increasing the greenhouse effect are carbon dioxide (CO2), methane (CH4), nitrous oxide (N20) and several others. Deforestation and the use of large quantities of fossil fuels are the two principal sources of carbon dioxide emissions.” {27} p.4 and 7 “The Earth receives radiation emanating directly from the sun and radiation reflected by the atmosphere, leading to elevation in average temperatures on the surface. This effect is amplified by contemporary forms of development in human activities. Indeed, most human activities (transportation, heating, refrigeration, industry, livestock farming, waste, etc.) lead to the emission of greenhouse gases. In particular, the use of fossil fuel energy (coal, oil, gas) or electricity generated from these fossil fuel sources emits CO2, which spreads very rapidly in the atmosphere and stays there for an average of over a century before becoming trapped in carbon wells, such as vegetation. {14} See greenhouse gas emissions.

Greenhouse gas (GHG)

“Greenhouse gas refers to the gases making up the atmosphere, both natural and anthropic, that absorb and reissue infra-red radiation.” {8} They are instrumental in keeping heat in the Earth’s atmosphere. These gases are produced both by natural and anthropic (i.e. of human origin) processes. The principal gases are water vapour, carbon dioxide (CO2), methane (CH4), nitrous oxide (NO2) and chlorofluorocarbons: hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6). The last six gases are covered by restrictions under the Kyoto Protocol (they are listed in Annex A of the Protocol).

Initial allocation - CO2 emission permits

“Initial allocation of permits that may subsequently be traded on the emission permits market. It entails very substantial redistribution effects, where these permits have a market value or an opportunity cost. The initial allocation and renewal of emission permits (like fishing permits, they are temporary) raises fairness and distortion of competition-related issues, both nationally and internationally.

Intergovernmental Panel on Climate Change (IPCC)

“Panel set up in 1988 by the World Meteorological Organization (WMO) and the United Nations Environment Programme (UNEP). Its role is to assess the latest scientific, technical and socio-economic literature produced worldwide relevant to the understanding of the risk of human-induced climate change.” {6}. The reports were published in 1990, 1995 and 2001. “Adoption of the IPCC Second Assessment Report at the 11th session of the IPCC in Rome provided the impetus for action in December 1995. Until then, experts had not been able to submit formal evidence of the link between human activity and climate change. The conclusion of the 1995 Assessment Report is that: “the balance of evidence suggests a discernible human influence on the global change”. {29}

Kyoto Protocol

“This December Framework Convention on Climate Change was adopted in Kyoto on 11 December 1997. It sets quantified commitments (in terms of carbon dioxide equivalents) for Annex B countries with a view to reducing or limiting their anthropogenic emissions of greenhouse gases out to 2008-2012. It also lays down policies and measures to be implemented to handle these objectives, together with basic principles for flexibility mechanisms.” {6}

Precautionary principle

“The precautionary principle, according to which the lack of certainties, given scientific and technical knowledge at the time, must not delay adoption of effective and proportionate measures intended to avert a risk of severe and irreversible damage to the environment at an economically acceptable cost” {19} Principle 15 of the Rio Declaration on the environment and development states: “where there are risks of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation”. {20}

Recycling

“Direct reintroduction of waste into a production cycle as a total or partial replacement for virgin material” {21}

Rio declaration

The 27 Sustainable development principles constitute the Rio Declaration unanimously adopted by 178 states in June 1992. Human beings are at the centre of concerns (1), without compromising the needs of present and future generations (3). States, which must cooperate in good faith (27), have the sovereign right to exploit their own resources without causing damage to other States (2), which they must warn of any disaster (18) or hazardous activities that may affect them (19). Environmental protection is an integral part of the development process (4), as is the task of eradicating poverty (5), and is incumbent on all countries (6) based on common, but different responsibilities (7). Unsustainable patterns of production and consumption must be eliminated (8) in favour of those that are viable and uptake of which is to be encouraged (9). Citizens must be involved in all decisions (10) as part of effective and cost-efficient environmental legislation (11) by promoting the internalisation of costs using the polluter pays principle (16), through impact studies (17), all measures that must not constitute unwarranted barriers to trade (12), while ensuring the responsibility of those causing the damage (13) and avoiding the transfer of polluting activities (14). A precautionary approach (15) should be applied. A number of major groups (interested parties) have a special role to play: women (20), young people (21), local communities and indigenous people (22). Peace, development and environmental protection are interdependent and indivisible (25), environmental rules are to be observed in times of armed conflict (24) and for people under oppression, domination and occupation (23). Environmental disputes must be resolved peacefully (26).

Rural life

Rural life reflects a special relationship between man and time and space, i.e. a relationship of reciprocal dependence between man and nature (environment, resources, physical and biological components, etc.). An expression of a lifestyle in the countryside, rural activity is based on the availability, use and processing of resources and as such it is subject, partially at least, to the climactic, edaphic and spatial conditions and constraints of the natural environment. An integral part of history according to the degree of dependence between man and nature, rural life began with the adaptation of nature to human needs and ended with the complete domestication of nature.” {1}

SICAV (an open-ended investment company)

“A société anonyme [joint-stock corporation] with the corporate object of managing a portfolio of negotiable securities. The share capital is equal at any time to the value of net assets, less the amounts available for distribution. It varies constantly according not only to new subscriptions and redemptions, but also the portfolio’s valuation." {23}

Social rating

“External assessment that gives rise to a rating of aspects, such as corporate giving and sponsorship, commitments to the community, promotion of women and minorities, working conditions and observance of workers’ rights, etc.” {23}

Socially Responsible Investment (SRI)

“It tends to align the needs of the business with those of the community, which has to work with new demands, including environmental protection. Socially responsible investors make sure that their actions are commensurate with stakeholder theory (the concept that better relationships will be beneficial for all)." {23}

Stakeholders, civil society, major groups, interested parties

“Those involved in the development of a business. This boils down to considering its relationships with employees, with customers/suppliers, with subcontractors, etc.”

Sustainable development

“Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” {10} “A policy and strategy intended to ensure the continuity over time of economic and social development, while protecting the environment, and without compromising the natural resources critical for human activity.” {25} “The concept of sustainable development incorporates the development concerns of all societies in the various regions of the world, social equity, local, regional and global environmental protection, protection of the planet’s wealth and solidarity with future generations.” {26}

Undertaking for the Collective Investment of Transferable Securities (UCITS)

“Enables investors to receive the benefit of collective management of their investments. There are two sorts, open-ended (e.g. SICAVs) and closed-end (e.g. FCPs)." {23}

United Nations Conference on Environment and Development (UNCED); Earth Summit

The United Nations General Assembly of 22 December 1989 requested that a worldwide meeting be convened to design strategies to “encourage sustainable and ecologically rational development in all countries”. This United Nations Conference on Environment and Development meeting, also known as the Earth Summit, which was held from 3 to 14 June 1992 in Rio de Janeiro, led to the drafting of several documents including the Rio Declaration, a text listing 27 principles, the Action 21 or Agenda 21 programme, and a statement of forest principles. Two previously drafted conventions were signed in Rio, namely the Framework Convention on Climate Change and the Convention on Biodiversity. Drawing on the work of the Brundtland Commission published five years earlier, this conference used the concept of sustainable development to promote solidarity-based and environmentally-friendly development conserving resources for future generations.