The aim of this report is to build a shared understanding of competence by providing clarity around the concept and its implications for educational practice. The authors present an understanding of competence that is research-based, relevant and appropriate for diverse educational contexts. This will help to create stimulating, thoughtful and productive discussions about competence, and advance how competence is engaged with when developing educational programmes. This report is intended to have broad applicability, having relevance for competence in diverse areas and modes of education (e.g., primary to higher education; vocational and general education; face-to-face delivery; digital; blended; hybrid). The report discusses what is meant by competence in three main sections, with information in each section building on the previous one. The first section highlights some key questions that may be raised about competence, in order to provide context for the definition and later discussions. In the second section, the unified definition of competence is presented. In the third section, this definition is expanded upon by delving into a discussion of the key principles that underlie this interpretation of competence.