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.
The Science Based Targets initiative (SBTi) is an independent body that validates corporate greenhouse gas reduction targets as consistent with the level of decarbonization required to limit global warming to 1.5°C — providing criteria, tools, and public validation for near-term emissions reduction targets and long-term net zero commitments.
SBTN is the organisation developing science-based targets for nature, extending the science-based target approach beyond climate to freshwater, land, ocean and biodiversity.
Scope 1 emissions are the direct greenhouse gas emissions released from sources an organisation owns or controls — fuel burned in its own boilers, furnaces and vehicles, together with process and fugitive emissions released at its own sites.
Scope 2 emissions are the indirect greenhouse gas emissions from the electricity, steam, heating and cooling an organisation purchases and consumes — physically released at the point of generation rather than at the organisation's own sites.
Scope 3 Category 15 covers greenhouse gas emissions associated with an organisation's investments, and is the category that dominates the inventory of banks, insurers and asset managers.
Scope 3 emissions are the indirect greenhouse gas emissions that occur across an organization's entire value chain — both upstream in the supply chain and downstream through product use and end of life — and typically represent the largest share of a company's total carbon footprint, often exceeding 70% for manufacturing, retail, and financial sector organizations.
The SEC Climate Disclosure Rules were rules adopted by the US Securities and Exchange Commission in 2024 requiring public companies to disclose climate-related risks and certain greenhouse gas emissions — rules that were stayed amid litigation and that the SEC moved to rescind in 2026.
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.
