Sustainability teams often use acronyms like CSRD, CBAM, CDP, and SBTi so frequently in their day-to-day work that they become second nature. But when communicating with other teams, those same terms can be completely foreign, leaving supply chain counterparts wondering what language is being spoken.
One key to improving cross-functional collaboration is adjusting vocabulary to meet supply chain counterparts where they are and helping them better understand the sustainability world. The glossary below is designed to support that effort. It can help sustainability teams better understand common supply chain terms, and if shared with supply chain counterparts, it can also help them make sense of the sustainability terms they are likely to hear.
Prefer a shareable format? If you would rather read or distribute the glossary as a PDF, you can access it here.
Key supply chain terms
| Term | Definition |
| ASN (Advance Ship Notice) (EDI 856) | An electronic document sent by a supplier in advance of a shipment that details contents and expected delivery time. |
| EDI (Electronic Data Interchange) | A standardized digital method for exchanging business documents between buyers and suppliers. |
| Inventory turnover | A measure of how many times inventory is sold and replaced over a period, a key metric for retail efficiency. |
| Invoice (EDI 810) | A bill issued by a seller to a buyer requesting payment for products or services. |
| Item data | Detailed information about individual products, including attributes like size, color, and price. Essential for inventory management and sales tracking, often facilitated by EDI. |
| Lead time | The time between placing an order and receiving the goods, crucial for planning and managing inventory. |
| Omnichannel | A retail approach that provides customers with a seamless experience across online stores, physical locations, and mobile apps. |
| OTIF (On‑Time In‑Full) | A metric measuring the percentage of orders delivered at the agreed time and with the correct quantity, a critical KPI for retail supply chains. |
| Purchase order (PO) (EDI 850) | A commercial document issued by a buyer that specifies types, quantities, and agreed prices for products or services. |
| Purchase order acknowledgment (EDI 855) | A document sent by the seller confirming receipt of a purchase order. It is critical for shipment tracking and receiving and is heavily supported by EDI systems. |
| 3PL (third‑party logistics) | A company that handles logistics, warehousing, and shipping for another business. |
Key sustainability terms
| Term | Definition |
| CDP (formerly Carbon Disclosure Project) | A global platform where companies choose to disclose environmental data, including emissions and climate targets. |
| CSRD (Corporate Sustainability Reporting Directive) | A European Union regulation that requires detailed sustainability disclosures from qualifying companies. |
| Emissions inventory | A complete accounting of the greenhouse gas emissions that a company is responsible for across its operations and value chain. |
| Emissions intensity | Emissions per unit of business activity, often expressed as emissions per unit of revenue or product. |
| SBT (science‑based target) | A company‑specific emissions reduction goal aligned with climate science. Companies can also set internal reduction targets that are not approved by SBTi. |
| SBTi (Science Based Targets initiative) | The organization that validates and approves science‑based emissions targets. |
| Scope 1 emissions | Direct greenhouse gas emissions from owned or controlled sources, such as company vehicles or onsite fuel combustion. |
| Scope 2 emissions | Indirect emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the company. |
| Scope 3 emissions | All other indirect emissions that occur in a company’s value chain, including upstream supply chain and downstream activities. |
| Scope 3, Category 1 | One of the 15 Scope 3 categories. Category 1 covers emissions from purchased goods and services, generated by suppliers. This is often one of the largest Scope 3 sources and a primary focus for supplier decarbonization. |
| Verified data | Emissions data that has been independently audited or reviewed by a third party to confirm its accuracy. |
Speaking a shared language is one of the simplest ways for sustainability teams to build trust and momentum with supply chain counterparts. The alphabet soup of acronyms and specialized terms in both functions can easily create barriers, but taking the time to clarify and align on these terms helps both teams work together more effectively toward the shared goal of reducing emissions and building a stronger, more resilient supply chain.
Looking for more ways to strengthen collaboration?
Download our Playbook for Cross-Functional Collaboration on Supply Chain Sustainability to access additional tools, templates, and practical guidance for building alignment with your supply chain team.
