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.
TCFD is a framework developed by the Financial Stability Board that provides recommendations for disclosing climate-related financial risks and opportunities — organized across four pillars of Governance, Strategy, Risk Management, and Metrics and Targets — and has become the foundational architecture for climate disclosure globally, embedded in IFRS S2, ESRS E1, and multiple national mandatory requirements.
TNFD is a global voluntary framework that provides organizations with guidance on assessing, managing, and disclosing their material dependencies and impacts on nature — structured around the LEAP approach and four disclosure pillars mirroring the TCFD architecture, designed to inform capital allocation decisions by investors and financial institutions.
A taxonomy-aligned activity is an economic activity that meets all three EU Taxonomy tests: substantial contribution to an environmental objective, do no significant harm to the others, and compliance with minimum social safeguards.
A taxonomy-eligible activity is an economic activity that is described in the EU Taxonomy's technical criteria — meaning it could, in principle, contribute to an environmental objective — regardless of whether it actually meets the performance thresholds to be taxonomy-aligned.
Third-party verification is the checking of a claim, dataset or report by an independent, accredited organisation with no stake in the outcome — the independence that gives a verification or assurance its credibility, as opposed to first-party (self) or second-party (related) checks.
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.
