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Glossary

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.

Are there any terms you don't recognise?

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V

Voluntary Carbon Market (VCM)

The Voluntary Carbon Market (VCM) is a marketplace in which organizations and individuals purchase carbon credits representing verified emissions reductions or removals from climate projects — outside of any regulatory compliance obligation — primarily to address residual emissions as part of net zero commitments or to contribute to climate action beyond direct reduction targets.

Carbon Markets

W

Water Footprint

A water footprint is a measure of the total volume of freshwater used, consumed and polluted to produce a product, run an operation or support an organisation, across its full value chain — expressed by source and, increasingly, weighted by local water scarcity.

Carbon Accounting
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Have a question we haven't defined yet?

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.