Actual avoided emissions1: Ex-post observations within a specified reporting period that is based on the clean energy produced and the grid emission intensity of the specific region in question. Figures are approximate and subject to change. For further information, please refer to Aquila Capital’s website, see footnote.
Battery Energy Storage System (BESS)2: Technology that stores electrical energy in batteries for later use, enhancing grid stability and enabling renewable energy integration.
Board of Directors (BoD)3: The governing body of an organisation responsible for overseeing the strategic direction, governance and overall operations.
Building Research Establishment Environmental Assessment Methodology (BREEAM)4: An organisation which provides a sustainability assessment framework for buildings and infrastructure.
Capacity5: The amount of energy output or input that can be sustained by a piece of energy-related equipment (e.g., battery energy storage systems, solar PV, wind farm) over a given period of time.
Carbon footprint6: A carbon footprint is the total GHG emissions caused directly and indirectly by an individual, organisation, event, or product.
Carbon intensity7: A measure of the amount of CO2 (or other greenhouse gases) emitted during the supply of one unit of an energy product or economic activity.
Clean energy8: An umbrella term that encompasses energy sources, infrastructure, technologies, and related assets compatible with a net zero emissions energy system.
Climate-related opportunities9: Refers to the potential positive impacts related to climate change on an organization. Efforts to mitigate and adapt to climate change can produce opportunities for organizations, such as through resource efficiency and cost savings, the adoption and utilization of low-emission energy sources, the development of new products and services, and building resilience along the supply chain.
Climate change mitigation10: Actions that limit or reduce GHG emissions, such as cutting emissions from energy and land use or enhancing carbon removal through natural or artificial sinks, in order to curb global warming.
Climate impact11: Effects of climate risks on human life, livelihoods, health, wellbeing, ecosystems and biodiversity, as well as economic, social, and cultural values, services, and infrastructure. These effects, which may be positive or negative, are often described as consequences or outcomes.
CO2 equivalent (CO2e)12: A standardised metric for the contribution to climate change exerted by different GHGs, expressed in terms of the contribution that is made by one unit of CO2.
Decarbonisation13: The process of reducing the carbon intensity of activities such as energy generation, manufacturing, and service delivery by addressing main sources of greenhouse gas emissions, by transitioning from fossil fuels to low or zero carbon alternatives.
Diversity14: Differences in the values, attitudes, cultural perspective, beliefs, ethnic background, sexual orientation, gender identity, skills, knowledge and life experiences of each individual in any group of people. the presence of difference within a given context, such as an organisation.
Electricity generation15: The amount of electricity generated by a generation facility (e.g., solar PV, wind farm) in a specified period of time.
Embodied emissions16: Emissions incurred to produce, use and decommission an asset during its entire lifecycle.
Energy mix17: The variety of energy sources used to satisfy demand for energy services in a country or region. Expressed in terms of the share of total energy supply or final consumption represented by each source.
Energy transition18: The global energy sector’s shift from fossil-based systems of energy production and consumption, including oil, natural gas and coal, to renewable energy sources like wind and solar, as well as lithium-ion batteries.
Environmental impact: See ‘Impacts’.
ESG factors19: Environmental, social or governance matters that may have a positive or negative impact on the financial performance or solvency of an entity, sovereign or individual.
ESG integration20: The systematic inclusion of ESG risks and opportunities in investment analysis, portfolio construction and risk management.
ESG risk21/22: An ESG event or condition that, if it occurs, could cause an actual or potential material negative impact on the value of the investment. ESG risks are the risks of any negative financial impact on the institution stemming from the current or prospective impacts of ESG factors on its counterparties or invested assets.
ESG Risk Assessment tool: Refers to a set of proprietary tools Aquila Capital has developed to identify and manage potential or actual ESG risks in relation to various investments.
Essential assets: Includes assets related to expanding or renovating the world’s low-carbon infrastructure. In the context of Aquila Capital, this includes clean energy solutions (e.g., wind, solar PV, hydropower and BESS), diversified infrastructure (e.g., transport, social infrastructure and communication networks), logistics, data centers and natural capital.
EU Taxonomy23: A classification system which allows financial and non-financial companies to share a common definition of economic activities that can be considered environmentally sustainable.
European Green Deal24: European Union's comprehensive roadmap aimed at transforming its economy for a sustainable future. Launched in December 2019, its primary objective is to achieve climate neutrality by 2050, ensuring that the EU emits no more greenhouse gases than it removes.
European Long-Term Investment Fund (ELTIF)25: A type of collective investment framework allowing investors to put money into companies and projects requiring long-term capital.
European Union (EU)26: The European Union is a political and economic union of 27 European countries that work together on shared policies, trade, and governance.
Financed emissions: The GHG emissions attributable to the loans and investments of financial institutions.
Forest Stewardship Council (FSC)27: A non-profit organization, providing trusted solutions to help protect the world’s forests and tackle deforestation, climate, and biodiversity challenges.
Gigawatt (GW)28: A unit of power equal to 1 billion watts.
Global Real Estate Sustainability Benchmark (GRESB)29: An organisation which provides ESG assessments and benchmarks across real assets including real estate and infrastructure, for assets and funds.
Green electricity30: Electricity produced from resources such as solar, wind, geothermal, biomass, and low-impact hydropower facilities.
Greenhouse Gases (GHG)31: Gases that trap heat in the atmosphere are called greenhouse gases including carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and other gases.
Households supplied: The number of equivalent households supplied by clean electricity. The electricity generated by the assets is divided by the average household electricity consumption for the EU Member States (MWh/household). The average EU household consumption is based on 2023 Odyssee Mure data, which reports the average household electricity consumption (KWh/household). Figures are approximate and subject to change.
Impacts32/33: The effect the undertaking has or could have on the environment and people, including effects on their human rights, connected with its own operations and upstream and downstream value chain, including through its products and services, as well as through its business relationships. The impacts can be actual or potential, negative or positive, intended or unintended, and reversible or irreversible. They can arise over the short-, medium-, or long-term.
Institutions can be impacted by or have an impact on ESG factors. For example, they can be impacted by ESG factors (outside-in perspective) through the physical effects of climate change on their premises. They can also have an impact on ESG factors (inside-out perspective) – for example, through their Scope 1 and Scope 2 CO2 emissions.
International Energy Agency (IEA)34: An intergovernmental organisation that provides policy advice, data and analysis to ensure energy security and help the world transition to clean energy.
ISO 2040035: An international standard that provides guidance to organisations, independent of their activity or size, on integrating sustainability within procurement practices.
Leadership in Energy and Environmental Design (LEED)36: A globally recognised green building rating system. LEED certification provides a framework for healthy, efficient, and cost-effective green buildings, providing environmental and social benefits.
Lifetime avoided emissions37: The sum of all avoided emissions over the course of the lifetime of a given asset or portfolio of assets, typically including both actual (ex-post) and projected (ex-ante) avoided emissions. Embodied emissions that were incurred to produce, use and decommission an asset during its entire lifecycle are subtracted.
This metric is designed to measure the contribution of clean energy assets to climate change mitigation over their lifetime on a forward-looking basis, specifically for assets under development and construction. Its calculation inputs are estimated based on expected production figures, grid emissions intensities and so on. Figures are approximate and subject to change. For further information, refer to the white paper (see footnote).
Principles for Responsible Investment (PRI)38: An independent initiative which works to promote responsible investment. It offers six principles which help incorporate ESG issues into investment practice.
Programme for the Endorsement of Forest Certification (PEFC)39: An international non-profit organisation which is a leading global alliance of national forest certification systems. It is dedicated to promoting sustainable forest management through independent third-party certification.
Scope 1-3 emissions40:
Includes the following three components:
Scope 1 emissions: Direct emissions from owned or controlled sources.
Scope 2 emissions: Indirect emissions from the generation of purchased energy.
Scope 3 emissions: All indirect emissions (not included in scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions.
Securitisation undertakings41: Within the meaning of the Luxembourg Securitisation Law, these are undertakings which carry out the securitisation in full, as well as undertakings that participate in such transactions by assuming all or part of the securitised risks (acquisition vehicles), or by issuing “financial instruments or contracting, for all or part of it, any type of loans” to ensure the financing of the issuing vehicles and whose articles of incorporation, management regulations or issue documents provide that they are subject to the provisions of this law.
Sustainability42: Using resources in a way that fulfils current needs without limiting the ability of future generations to meet theirs.
Sustainability risks: Refer to ‘ESG risks’
Sustainable Development Goals (SDGs)43: A set of 17 global goals adopted in 2015, aimed at ending poverty, improving health and education, reducing inequality, promoting economic growth, tackling climate change, and protecting oceans and forests.
Sustainable Finance Disclosure Regulation (SFDR)44: EU regulation which requires financial market participants and financial advisers to communicate sustainability information to investors. Generally, Article 6 products do not promote environmental or social characteristics, Article 8 products promote such characteristics and Article 9 products must have a sustainable investment objective. The regulation is currently under further development.
Sustainable Investment Strategies: Within the context of Aquila Capital, this term refers to the specific strategies i.e., funds and/or securitised undertakings, which focus on our definition of Sustainable Investment. See ‘Sustainable Investment’.
Sustainable Investments: The term ‘sustainable investments’ is used in a broader strategic sense and is not intended solely to refer to the definition of ‘sustainable investment’ under the Sustainable Finance Disclosure Regulation (SFDR). In this context, it includes investments in, for example, clean energy and energy transition-related assets such as battery storage, electric vehicle charging infrastructure, energy efficiency solutions, behind-the-meter assets, forestry, and environmentally friendly or energy-efficient residential and commercial real estate. This broader definition includes, but is not limited to, investments that may qualify as sustainable investments under SFDR.
Task Force on Climate-related Financial Disclosures (TCFD)45: The TCFD has developed a framework to help organisations more effectively disclose climate-related risks and opportunities. The IFRS Foundation has taken over the monitoring of the progress of companies’ climate-related disclosures since the TCFD has been disbanded.
United Nations Global Compact46: A voluntary initiative based on CEO commitments to implement universal sustainability principles. It promotes alignment of strategies and operations with universal principles on human rights, labour, environment, and anti-corruption.
Verein für Umweltmanagement und Nachhaltigkeit in Finanzinstituten (VfU)47: A network of sustainable finance professionals from over 60 financial companies which focuses on promoting sustainable finance. It provides information and resources, webinars and trainings, tools, experts for the network.
1 Wiebeck, A., Arndt, B., 2023: “Lifetime avoided emissions”.
2 Greenvolt, n.d.: “Battery Energy Storage Systems”
3 Investopedia, n.d.: “Board of Directors: Definition and Role”
4 BREEAM, n.d.: “About BREEAM”
5 IEA, n.d.: “Glossary.”
6 Science Direct, 2023: “Carbon Footprint”
7 IEA, n.d.: “Glossary.”
8 IEA, n.d.: “Glossary.”
9 TCFD, 2017 “Recommendations of the Task Force on Climate-related Financial Disclosures”.
10 IPCC, 2023: “IPCC Sixth Assessment Report Chapter 1”
11 Umweltbundesamt, n.d.: “Klimawirkung”
12 IEA, n.d.: “Glossary.”
13 Ecovadis, 2026: “Decarbonization & Decarbonization Strategies”
14 European Institute for Gender Equality, n.d.: “Diversity.”
15 EIA, n.d.: “FAQ”
16 Wiebeck, A., Arndt, B., 2023:“Lifetime avoided emissions”
17 IEA, n.d.: “Glossary.”
18 S&P Global, 2020: “What is Energy Transition?”
19 EBA, 2021: “EBA/REP/2021/18”.
20 World Bank, 2018.: “Incorporating ESG Factors into fixed income investment“
21 European Union, 2019: “Regulation (EU) 2019/2088”
22 EBA, 2021: “EBA/REP/2021/18”
23 European Commission, n.d.: “EU taxonomy for sustainable activities”
24 European Commission, 2019: “The European Green Deal.”
25 European Commission, 2015: “European Long-term Investment Funds”
26 European Commission, 2022: “The European Union”
27 FSC, n.d.: “About us”
28 Merriam-webster, n.d.: “Gigawatt”
29 GRESB, n.d.: “About GRESB”
30 European Environment Agency, n.d.: “Green Electricity”
31 EPA, 2025: “Overview of Greenhouse Gases”
32 European Commission, 2023: "5303 final - ANNEX 2"
33 EBA, 2021: “EBA/REP/2021/18”
34 IEA, n.d.: “About”
35 ISO, 2017: “ISO 20400:2017(en)”
36 LEED, n.d.: “LEED rating system”
37 Wiebeck, A., Arndt, B., 2023:“Lifetime avoided emissions”
38 PRI, n.d.: “About the PRI”
39 PEFC, n.d.: “What is PEFC?”
40 Greenhouse Gas Protocol, 2022: “FAQ”
41 CSSF, 2004: “Law of 22 March 2004 on securitisation”
42 United Nations, 1987: “Report of the World Commission on Environment and Development: Our Common Future”
43 United Nations, n.d.: “The 17 goals”
44 European Union, 2019: “Regulation (EU) 2019/2088”
45 TCFD, n.d.: “Task Force on Climate-related Financial Disclosures”
46 United Nations Global Compact, n.d.: “Who we are”
47 VfU, n.d.: “Wer wir sind”