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.
Transition risk is the financial risk an organisation faces from the shift to a low-carbon economy — arising from policy, technology, market and reputational change, rather than from the physical effects of climate change itself.
TSRS are the Türkiye Sustainability Reporting Standards — mandatory sustainability disclosure standards issued by the Public Oversight Accounting and Auditing Standards Authority (KAP) that require listed companies and financial institutions in Türkiye to disclose material sustainability-related risks and opportunities and climate-related information, substantially aligned with the ISSB's IFRS S1 and S2 standards.
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.
