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.
SBTN is the organisation developing science-based targets for nature, extending the science-based target approach beyond climate to freshwater, land, ocean and biodiversity.
Scope 1 emissions are the direct greenhouse gas emissions released from sources an organisation owns or controls — fuel burned in its own boilers, furnaces and vehicles, together with process and fugitive emissions released at its own sites.
Scope 2 emissions are the indirect greenhouse gas emissions from the electricity, steam, heating and cooling an organisation purchases and consumes — physically released at the point of generation rather than at the organisation's own sites.
Scope 3 Category 15 covers greenhouse gas emissions associated with an organisation's investments, and is the category that dominates the inventory of banks, insurers and asset managers.
Scope 3 emissions are the indirect greenhouse gas emissions that occur across an organization's entire value chain — both upstream in the supply chain and downstream through product use and end of life — and typically represent the largest share of a company's total carbon footprint, often exceeding 70% for manufacturing, retail, and financial sector organizations.
A Second Party Opinion is an independent assessment of whether a green, social, sustainability or sustainability-linked financing framework aligns with recognised market principles, published before the instrument comes to market.
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.
