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.
Technical screening criteria are activity-specific, measurable environmental thresholds that determine whether an economic activity substantially contributes to an environmental objective. In the green asset ratio, an asset is "eligible" only when it is subject to these criteria.
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.
TNFD-aligned reporting is nature-related disclosure prepared in line with the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD).
The Transaction Registry System is the secure electronic registry that records all Türkiye ETS allowance accounts and transactions — issuance, holding, transfer, banking and surrender. It is the Türkiye-specific implementation of a carbon registry and provides an auditable record of who holds which allowances.
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.
