GoodShipping Glossary

Book and claim

Book & Claim is one of the four most common chain of custody models. It is a methodology for managing and verifying the use of sustainable resources, particularly in supply chains where physical tracking of the resource is challenging.

Book and claim vs mass balance

Book and Claim and mass balance are methods for managing sustainability in supply chains. Book and Claim trades sustainability credits separately from the product, allowing buyers to claim benefits without tracing the material. Mass balance mixes sustainable and non-sustainable materials, ensuring the final product contains an equivalent amount of sustainable material, maintaining traceability. Book and Claim offers flexibility, while mass balance provides detailed traceability for physical products.

Carbon insetting

Carbon insetting is the implementation of carbon reduction initiatives within the company's own supply chains or operations.

Fuel switching involves using sustainable biofuel in a third-party carrier that typically burns fossil fuel, reducing emissions through the mass balance principle, where all carbon reductions count, even if the carrier doesn't transport your cargo.

Digital traceability

Digital traceability is a tool to assure and verify sustainability claims linked to goods and products throughout their lifecycle. This process ensures that sustainability claims are transparent and verifiable, helping businesses comply with regulations and build trust with stakeholders.

Environmental Attribute Certificates

Environmental Attribute Certificates (EACs) are tradable documents or instruments that certify the environmental benefits associated with the production of a certain amount of renewable energy or other environmentally friendly activities.

These certificates represent the environmental attributes, such as reduced carbon emissions, of the energy produced or actions taken, allowing them to be traded separately from the physical energy or activity itself.

Mass balance principle

The mass balance principle refers to the method of ensuring that the environmental benefits (such as carbon offsets or renewable energy certificates) generated within a supply chain or specific project match the claims made by the company. This means that the total amount of environmental credits or attributes created through insetting projects must equal the amount claimed or utilised by the company, ensuring transparency and integrity in sustainability reporting.

Net zero transportation

Net zero transportation balances emitted greenhouse gases (GHGs) with the amount removed from the atmosphere. It involves reducing emissions to the lowest level and offsetting any remaining emissions through GHG removal or capture, aiming for a net zero carbon footprint, thus not contributing to global warming or climate change.

Scope 1 emissions

Scope 1 emissions are direct greenhouse gas (GHG) emissions from sources owned or controlled by an organisation, such as fuel combustion in company-owned vehicles and on-site equipment. They are one of three categories defined by the Greenhouse Gas Protocol to help organisations measure and manage their carbon footprints.

Scope 2 emissions

Scope 2 emissions are the indirect greenhouse gas (GHG) emissions associated with the consumption of purchased electricity, steam, heat, or cooling. These emissions are generated by the energy supplier but are considered indirect for the consuming organisation because they result from the organisation's energy use.

Scope 3 emissions

Scope 3 emissions are indirect greenhouse gas emissions in a company's value chain that are not directly controlled by the company. They include emissions from purchased goods and services, business travel, waste disposal, and transportation and distribution. Scope 3 emissions often represent the largest portion of a company's carbon footprint.

Scope 4 emissions

Scope 4 emissions - sometimes coined avoided emissions - refer to the difference in GHG emissions that occur when using a certain solution compared to the GHG emissions that would have occurred without the solution. Scope 4 emissions are reported separately from the company’s Scope 1, 2, and 3 GHG inventories and are considered secondary in importance to the direct emissions accounting and target setting associated with Scope 1, 2, and 3.

Sustainable transportation

Sustainable transportation refers to modes of transport and practices that have a low impact on the environment and are energy-efficient. It includes the use of renewable energy sources, reducing greenhouse gas emissions, and minimising resource consumption. Some examples include electric vehicles, public transport, transportation that runs on clean, renewable fuels.

Sustainable transportation solutions

Sustainable transportation solutions reduce environmental impact, enhance energy efficiency, and promote societal well-being. They aim to minimise greenhouse gas emissions, lower resource consumption, and support healthier communities. Examples include vehicles using alternative fuels or batteries, shared mobility options (bike sharing, carpooling), and smart transportation technology (smart parking, traffic management systems).

What is sustainable shipping

Sustainable shipping refers to the use of eco-friendly practices and technologies in maritime transport to reduce environmental impact, minimise greenhouse gas emissions, and promote energy efficiency, ensuring long-term ecological balance and economic viability.

Why is the chain of custody important

The chain of custody is important because it ensures the integrity and traceability of sustainable practices throughout the supply chain. By maintaining a clear and documented path from the source of raw materials to the final product, the chain of custody verifies that products have been sourced, processed, and distributed according to established environmental and ethical standards.