Glossary

Tip

If you find an important term relating to ecosystems missing in the list below, you might be able to find it in the IPBES glossary.

Accrual Value: Accrual value refers to the amount of income or expense recognized in the accounting records during a specific period, regardless of when the associated cash transactions occur. It reflects the economic activity or performance of a business over time, recognizing revenues when earned and expenses when incurred, regardless of when cash is received or paid.
Adressable Market: The revenue opportunity available for a product or service within a specific market, considering the maximum potential demand.; Servicable: The portion of the addressable market that a business can effectively serve and target based on its resources, capabilities, and strategy.; Total: The entire market that could potentially be addressed by a product or service, encompassing all possible customer segments and use cases.
Asset: Anything of value owned by an individual, organization, or business, which can be converted into cash or provide future economic benefits.
Balance Sheet: A financial statement that provides a snapshot of a company’s financial position at a specific point in time. It summarizes the company’s assets, liabilities, and shareholders’ equity, showcasing the balance between what the company owns and owes.
Bioacoustic Monitoring: The scientific practice of using sound recordings and analysis techniques to study and monitor the vocalizations and acoustic signals produced by living organisms in their natural environments. Bioacoustic monitoring is commonly used in ecology and wildlife research to assess biodiversity, behavior, and habitat health based on acoustic cues.
Business Concept: The core idea or proposition behind a business, encompassing its products or services, target market, unique value proposition, and key differentiators.
Business Purpose: The fundamental reason for the existence of a business, beyond profit-making, often encapsulating the broader societal or environmental goals and values that guide its operations.
Capital: Financial resources, including funds and assets, used by a business to generate income and support its operations.
Cash Flow: The movement of money into and out of a business, reflecting the liquidity and financial health of the organization.
Chemical Overuse: Chemical overuse refers to the excessive or inappropriate application of synthetic chemicals such as fertilizers, pesticides, and herbicides in agricultural, industrial, or residential settings. It occurs when chemicals are applied in quantities higher than necessary or when they are used without proper consideration for their environmental and health impacts. Chemical overuse can lead to various negative consequences, including soil degradation, water pollution, biodiversity loss, harm to beneficial organisms, development of pesticide resistance, and adverse effects on human health. Sustainable agricultural practices and integrated pest management strategies aim to reduce chemical overuse and minimize its environmental and social impacts.
Cost of Goods Sold (COGS): The direct costs associated with producing or purchasing the goods that a company sells during a specific period. COGS includes the cost of raw materials, labor, and overhead directly attributable to the production of goods.
Comparative Analysis: A method of evaluating and comparing the performance, features, or characteristics of a business, product, or strategy relative to others in the same industry or market.
Contingency Funds: Reserved funds set aside by a business or individual to cover unforeseen expenses or emergencies, providing a financial safety net.
Cost-Based Pricing: A pricing strategy where the selling price of a product or service is determined by adding a markup to the cost of production, ensuring that all costs are covered and a desired profit margin is achieved.
Costumer-Based Pricing: A pricing strategy that takes into account the perceived value of a product or service from the customer’s perspective, aligning the price with what customers are willing to pay based on factors such as brand image, quality, and customer experience.
Debt: Money borrowed by an individual, business, or government with the obligation to repay the principal amount along with interest within a specified time period.
Deficit: The amount by which expenses or liabilities exceed income, resources, or assets. A deficit occurs when there is a shortfall or negative balance in financial terms.
Deforestation: Deforestation refers to the clearing, removal, or destruction of forests or wooded areas, primarily for agricultural expansion, urban development, logging, or infrastructure projects. Deforestation leads to the loss of forest cover and the conversion of forested land into non-forest uses, resulting in significant environmental impacts such as habitat destruction, biodiversity loss, soil erosion, water pollution, and climate change. It is a major concern for global environmental conservation efforts.
Degraded Ecosystem: An ecosystem that has been adversely affected by various factors, such as human activities, pollution, or climate change, resulting in a decline in its health, diversity, and functionality.
Depreciation: Depreciation refers to the decrease in the value of an asset over time due to factors such as wear and tear, obsolescence, or aging. It is a non-cash expense that reflects the gradual reduction in the asset’s usefulness or value as it is used in the operations of a business. Depreciation is recorded on the income statement to reflect the allocation of the asset’s cost over its useful life.
Distribution Channels: The pathways or routes utilized by businesses to deliver products or services from producers or manufacturers to end consumers. These channels can include intermediaries such as wholesalers, retailers, distributors, agents, and online platforms. Distribution channels play a crucial role in reaching target markets efficiently, managing inventory, and providing customer access to goods and services.
Due Diligence: The comprehensive investigation, research, and analysis conducted by individuals or organizations before entering into a business transaction or agreement. It aims to gather relevant information to make informed and prudent decisions, ensuring that all aspects of the transaction are thoroughly examined.
EBITDA: EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric used to assess a company’s operating performance and profitability before the impact of non-operational decisions like financing and accounting decisions. EBITDA focuses on the earnings from core business operations, excluding the effects of capital structure, tax rates, and non-cash accounting items like depreciation and amortization. It provides investors and analysts with a clearer view of the company’s operational efficiency and its ability to generate cash
Ecopreneur: An entrepreneur who prioritizes environmental sustainability and incorporates eco-friendly practices and principles into their business ventures. Ecopreneurs aim to create products or services that have a positive impact on the planet, often considering the ecological and social aspects of their operations alongside economic success.
Ecosystem: A community of living organisms interacting with each other and their physical environment. It includes not only the organisms but also the physical environment they inhabit, forming a complex web of relationships and dependencies.
Increase Ecosystem Integrity: Increasing ecosystem integrity involves measures to enhance the health, resilience, and functionality of ecosystems, ensuring they can sustainably provide essential services and support biodiversity. This may include efforts to reduce pollution, prevent habitat degradation, control invasive species, promote natural regeneration processes, and restore ecological balance. Enhancing ecosystem integrity contributes to the long-term sustainability of ecosystems and the well-being of both humans and wildlife.
Entrepreneur: An individual who takes initiative to start, manage, and operate a business, often with the goal of making a profit by identifying and capitalizing on opportunities.
Equity: The ownership interest in a company, representing the residual interest in the assets of the entity after deducting liabilities. It can also refer to fairness and justice in economic and social contexts.
Expenditure: The total spending or costs incurred by a business or individual during a specific period, including operational, capital, and other expenses.
Forced Labor: The illegal practice of compelling individuals to work against their will, often through threats, coercion, or physical violence. Forced labor deprives individuals of their freedom and basic human rights, and it is considered a violation of international labor standards.
Gross Profit: The total revenue generated by a business minus the cost of goods sold (COGS). Gross profit represents the amount available to cover operating expenses and contribute to net profit.
Gross: The total amount before any deductions or expenses. It can refer to gross income, gross profit, or other financial metrics before subtracting costs.
Human Resources: The department within an organization responsible for managing personnel, including recruitment, training, employee relations, and other aspects related to workforce management.
Income Before Taxes: Operating income minus non-operating expenses
Infrastructure: The physical and organizational structures, facilities, and systems necessary for the operation of a society, economy, or enterprise. Infrastructure includes transportation networks, communication systems, utilities, buildings, and other essential facilities that support and enable various activities and functions.
Initial capital outlay: Assess the upfront costs necessary for initiating a restoration enterprise, such as purchasing equipment, acquiring land, or investing in initial restoration activities.
Inventory: The total stock of goods or materials held by a business for the purpose of resale, production, or use in its operations.
Indigenous Peoples and Local Communities (IPLC): Indigenous peoples and local communities (IPLCs) are, typically, ethnic groups who are descended from and identify with the original inhabitants of a given region, in contrast to groups that have settled, occupied or colonized the area more recently.
Just Transition: A framework and set of policies aimed at ensuring a fair and equitable transition for workers and communities affected by changes in industries, technologies, or economic structures, often associated with shifts toward sustainability and environmental considerations.
Land Use Change: The alteration or modification of how land is utilized, often involving shifts in the purpose or activities conducted on a particular piece of land. Land use change can include transformations from natural landscapes to urban areas, agricultural fields, or other human-made environments, impacting ecosystems and communities. Land use can also change to regenerate ecosystems.
Liability: A financial obligation or debt that a business or individual owes to others, typically arising from past transactions or events.
Loss: The negative financial outcome experienced by a business or individual when the expenses exceed the revenue or when the value of assets decreases, leading to a decrease in net worth.
Market Testing: The process of assessing a product or service’s viability and acceptance in the target market through experiments, trials, or surveys before a full-scale launch.
Marketing: The activities and strategies involved in promoting, advertising, and selling products or services to customers, encompassing market research, advertising, branding, and communication.
Mitigation: The proactive measures and strategies implemented to reduce or prevent the adverse impacts of potential risks, challenges, or threats. Mitigation aims to minimize the severity or negative consequences of events, often related to environmental, social, or economic factors.
Monitoring: The systematic collection of data on specific (risk and impact) indicators to evaluate and document how implementation is progressing, and which targets are being met.
Minimum Viable Product (MVP): A version of a product that includes only the essential features necessary to meet the needs of early adopters and gather feedback for further development. The primary goal of an MVP is to quickly deliver a functional product to the market with minimal resources, allowing the development team to learn from real user interactions and make informed decisions about future enhancements.
Natural Capital: The elements of the natural environment, such as air, water, soil, and biodiversity, that provide benefits to humans and other living organisms. Natural capital plays a crucial role in supporting life, providing ecosystem services, and contributing to the overall well-being of ecosystems and societies.
Natural Ecosystem State: The original and undisturbed condition of an ecosystem, free from significant human influence or alteration. The natural state of an ecosystem represents its pristine or unmodified state, characterized by the balance of species, ecological processes, and environmental conditions that existed before human intervention.
Increase Natural Ecosystem Area: Increasing natural ecosystem area refers to the expansion or enhancement of the size and coverage of existing ecosystems or the creation of new ones. This may involve initiatives such as reforestation, afforestation, habitat restoration, or the establishment of protected areas to conserve biodiversity and enhance ecosystem services. The goal is to promote ecological balance, support wildlife habitats, and mitigate the impacts of habitat loss and fragmentation.
Net Income: Net income, also known as net profit, is the total earnings of a company after all expenses have been deducted from revenues. This includes deductions for operating expenses, interest, taxes, depreciation, and amortization. Net income represents the amount of money that a company has earned during a specific reporting period and is an important indicator of financial health. It is the bottom line of the income statement and directly affects the company’s profitability and earnings per share.
Net Profit: The total revenue generated by a business or individual after deducting all expenses, costs, taxes, and other deductions. Net profit is a key indicator of financial performance and represents the actual earnings retained by the entity.
Net: The amount remaining after all deductions or allowances have been made, often used in the context of income, profit, or financial transactions.
Operating Income: Gross profits minus operating expenses
Operational Expenditures: The day-to-day expenses incurred by a business in its normal course of operations, including costs related to rent, utilities, salaries, and other ongoing operational activities.
Operations: The activities and processes involved in running the day-to-day functions of a business or organization, including production, logistics, and other operational aspects.
Organigram: An organigram, also known as an organizational chart, is a visual representation of the hierarchical structure and relationships within an organization. It typically depicts the roles, responsibilities, and reporting relationships of individuals or departments within the organization, showing how they are organized and interconnected. Organigrams help stakeholders understand the organizational structure, facilitate communication, and clarify lines of authority and decision-making.
Ownership: The legal right or claim to possess, control, and use a property, asset, or business. Ownership implies the ability to make decisions, derive benefits, and transfer or sell the owned entity.
Permit: An official document or authorization issued by a government or regulatory authority that grants permission to engage in a specific activity, conduct business, or use certain resources. Permits are often required to ensure compliance with laws and regulations.
Potential Market Size: The estimated size of the overall market opportunity for a particular product or service, considering factors such as the total number of potential customers and their purchasing power.
Product-Market Fit: Product-market fit refers to the alignment between a product or service and the needs, preferences, and demands of a specific target market. It indicates that the product addresses a genuine problem or pain point faced by customers and delivers unique value that resonates with them. Achieving product-market fit is crucial for sustainable business growth and market success, as it indicates that the offering meets market demand and has the potential for widespread adoption.
Profit Loss Statement: A financial report that provides a summary of the revenues, costs, and expenses incurred by a business over a specific period, indicating whether the business has earned a profit or incurred a loss during that time.
Profit: The positive financial gain obtained when the revenue generated from a business or investment exceeds the total expenses and costs incurred.
Prototype: A preliminary model or version of a product that is developed to test and validate its design, functionality, and feasibility before full-scale production.
Regeneration: Intentional activities to restore or renew ecosystems that have been disturbed or damaged, aiming to bring them back to a more natural and balanced state; active: Direct influence on the process of regeneration, such as planting seeds and trees.; passive: Reducing external harm causing the degradation to give the ecosystem time to recover by itself.
Rehabilitation: Improving the degraded state but not fully recovering it.
Restoration Business: A Restoration Business incorporates ecosystem restoration and rehabilitation into the way it operates.
Revenue: Revenue is the total amount of money generated by a company from its normal business activities, typically from the sale of goods and services to customers. It is often referred to as sales or turnover. Revenue is calculated before any expenses are subtracted, making it a gross income figure. It serves as a starting point for a company’s income statement and is crucial for assessing the company’s ability to bring in money and cover operating costs.
Social Justice: The fair and equitable distribution of resources, opportunities, and privileges within a society, aiming to address and rectify systemic inequalities and promote the well-being of all individuals.
Soil Degradation: The deterioration of soil quality and health, often caused by human activities such as deforestation, agricultural practices, and improper land management. Soil degradation results in a decline in fertility, erosion, and a loss of the soil’s ability to support plant and animal life.
Stakeholder: People or groups who have an interest or involvement in the success or activities of a business or project. This includes employees, customers, investors, and the local community.
Stewardship: The responsible and ethical management and care of resources, assets, or affairs entrusted to an individual or organization. Stewardship involves making decisions that consider the long-term well-being and sustainability of the entrusted entities.
Supply Chain: A network of organizations, individuals, activities, information, and resources involved in the production, transformation, distribution, and delivery of goods or services from the initial creation to the end consumer. The supply chain encompasses all stages and processes, including sourcing raw materials, manufacturing, logistics, and retail.
Surplus: The excess or extra amount of something, often referring to resources, income, or goods that exceed what is needed or used.
Trade-Off: The concept of giving up one benefit or advantage in exchange for another. In decision-making, trade-offs involve choosing between different options, considering the advantages and disadvantages of each, and accepting the compromise inherent in the decision.
Transformed Ecosystem: An ecosystem that has undergone significant changes, often as a result of human intervention or external factors, leading to a different composition and structure compared to its original state.
Value Proposition: The unique set of benefits and value that a product or service offers to its customers, differentiating it from competitors and addressing the needs and preferences of the target market.
Willingness to Pay (WTP): The highest amount a customer is willing to spend or pay for a product or service.