Insights
Clear definitions of the sustainability, climate, and ESG terms that matter most — from CBAM and CSRD to SBTi and PCAF. Written by Semtrio's advisory team.
An Emissions Trading System (ETS) is a carbon pricing system in which a total emissions cap is set, the corresponding emission rights are distributed as allowances, and those allowances can be bought and sold — reducing greenhouse gas emissions through the market.
The Energy Performance Certificate (EKB in Türkiye) is an official document showing a building's energy class (A to G) and its energy consumption and CO₂ emissions. In the green asset ratio it is a primary piece of evidence for a building being technically screened as "green".
An Environmental Product Declaration is an independently verified, standardised document reporting the life-cycle environmental impacts of a product, produced under ISO 14025 according to category-specific rules that make comparable products genuinely comparable.
The equity share approach is a greenhouse gas accounting boundary method under which an organisation accounts for emissions from its operations in proportion to its ownership interest — reflecting the economic stake it holds in each operation.
ESG integration is the practice of systematically including environmental, social and governance factors in investment analysis and decisions, alongside traditional financial factors.
An ESG strategy is an organisation's plan for managing its material environmental, social and governance issues and integrating them into business decisions and long-term value creation.
ESRS E1 is the climate change standard within the European Sustainability Reporting Standards, setting out what companies must disclose about their transition plan, climate targets, greenhouse gas emissions and the financial effects of climate-related risks and opportunities.
ESRS G1 is the governance standard within the European Sustainability Reporting Standards, requiring companies reporting under the CSRD to disclose how they manage business-conduct matters — corporate culture, anti-corruption and bribery, political engagement, supplier payment practices, and the management of supplier relationships.
If you're working through a regulatory framework or sustainability challenge and need clarity on a specific term or concept — our team is here to help directly.
