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.
Climate scenario analysis is a structured process for testing how an organisation's strategy and financial position would perform under different plausible climate futures, including at least one scenario consistent with limiting warming to 1.5°C.
Climate transition finance is funding raised by carbon-intensive companies to finance their shift to a low-carbon business model, guided by ICMA's Climate Transition Finance Handbook.
A climate transition plan is a time-bound, forward-looking action plan that sets out how an organisation will adjust its strategy, operations and business model to meet its greenhouse gas reduction targets and align with the transition to a low-carbon economy — typically consistent with limiting global warming to 1.5°C.
Co-benefits are the additional social and environmental benefits a carbon project delivers beyond its core emissions reductions, such as biodiversity protection, jobs or clean water.
A carbon dioxide equivalent (CO₂e) is a standard unit that expresses the climate impact of any greenhouse gas as the amount of CO₂ that would cause the same warming, by multiplying each gas by its global warming potential.
A compliance carbon market is a regulated market in which capped entities must surrender allowances or credits to meet legally binding emissions limits, such as the EU Emissions Trading System.
A consolidation approach is the rule an organisation chooses for drawing its greenhouse gas inventory boundary — operational control, financial control or equity share — determining which operations' emissions it accounts for, and in what proportion.
The Corporate Sustainability Due Diligence Directive (CSDDD) is an EU law requiring large companies to identify, prevent and address adverse human rights and environmental impacts across their chain of activities, and to adopt a climate transition plan aligned with the 1.5°C goal.
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.
