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.
A green bond is a fixed-income financial instrument used to raise capital exclusively for projects with defined environmental benefits — issued in accordance with the ICMA Green Bond Principles and subject to external review — with post-issuance allocation and impact reporting confirming that proceeds were used as intended.
The Green Bond Principles are ICMA's voluntary process guidelines for issuing green bonds, built on four core components covering use of proceeds, project evaluation and selection, management of proceeds, and reporting.
The Green Claims Directive was a proposed EU law intended to curb greenwashing by requiring companies to substantiate and independently verify environmental marketing claims before making them — a proposal the European Commission signalled its intention to withdraw in 2025, leaving its future uncertain.
A green loan is a loan made exclusively to finance or refinance eligible green projects, structured in line with the LMA's Green Loan Principles.
The Green Loan Principles (GLP) are a voluntary framework, maintained by the LMA, APLMA and LSTA, that sets out how a loan should be structured to qualify as a green loan.
The Greenhouse Gas Protocol is the world's most widely used accounting framework for measuring and managing greenhouse gas emissions — developed by WRI and WBCSD — providing the standards, methodologies, and guidance for corporate GHG inventories across Scope 1, 2, and 3 emissions, and referenced by virtually every major sustainability framework and reporting standard.
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.
