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.
Physical risk is the financial risk to an organisation from the physical effects of climate change — divided between acute risks arising from extreme weather events and chronic risks arising from long-term shifts in climate patterns.
A plastic credit represents a fixed amount of plastic — typically one tonne — collected or recycled by a project, which a company can buy to support or claim plastic-reduction action.
Portfolio decarbonisation is the process by which a financial institution reduces the greenhouse gas emissions associated with its lending and investment portfolio, rather than only those from its own operations.
Principal Adverse Impacts (PAIs) are the most significant negative effects of investment decisions on sustainability factors — such as greenhouse gas emissions, biodiversity, water, waste and human rights — which financial-market participants must identify, disclose and, where they consider them, report against defined indicators under the SFDR.
REDD+ is a UN framework that rewards developing countries for Reducing Emissions from Deforestation and forest Degradation, plus conserving and sustainably managing forests.
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.
