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 Banking Book Taxonomy Alignment Ratio (BTAR) is an EU banking indicator that complements the Green Asset Ratio by also counting exposures the GAR leaves out — notably SMEs and certain non-EU or out-of-scope counterparties.
Base year recalculation is the adjustment of an organisation's historical base year emissions to keep them comparable after structural changes — such as acquisitions, divestments or methodology updates — so that progress against a target is measured consistently over time.
A baseline is the reference scenario of what emissions would have been without a carbon project, against which the project's reductions or removals are measured.
A baseline year is the reference year against which an organisation measures its emissions performance over time and sets reduction targets, chosen for data quality and representativeness and recalculated when the organisation changes structurally.
A battery passport is the Digital Product Passport for batteries — the first DPP to become mandatory. From 18 February 2027, EV, industrial (over 2 kWh) and light-means-of-transport batteries placed on the EU market must carry a digital passport with their carbon footprint, materials, recycled content and performance data.
A benchmark is the reference emission amount per unit of product or activity in an emissions trading system; free allocation is calculated by multiplying it by activity level, which rewards low-emission (efficient) installations.
In the Responsible Programme, the beneficiary is the manufacturer-exporter company that meets the eligibility conditions and is admitted to the programme's support. Being a beneficiary carries obligations as well as support — reporting, evidence and keeping within the programme's rules.
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.
