SIX and Greenonomy have launched a sustainability assessment solution for small- and medium-sized enterprises (SMEs).
The launch follows the December 2023 partnership between SIX and Greenonomy, and uses the ESG assessment and reporting specialist’s software-as-a-service platform to give global banking clients a view of their SME clients’ sustainability performances.
Alongside this, users will also benefit from definitions of SMEs’ sustainability transition trajectories.
Using the service, clients will be able to calculate the EU’s Banking Book Taxonomy Alignment Ration (EU BTAR), which indicates the degree to which a bank’s loan book is exposed to SMEs aligned with EU sustainability directives.
The companies have developed the solution in light of the important role of SMEs in the transition to a sustainable, low-carbon economy. They aim to offer a one-stop-shop service to banks, reducing operational costs and providing comprehensive sustainability assessments of SMEs.
Marion Leslie, head of financial information and executive board member at SIX, says: “The importance of gaining a clearer insight into the climate credentials of SMEs cannot be overstated. [They] represent 90 per cent of businesses worldwide, not to mention 99 per cent of the EU’s economy. They also play an indispensable role in driving innovation and growth.
“We must ensure lenders are well informed around the sustainability trajectory of firms seeking funding, not just to ensure capital is flowing towards the most socially and environmentally responsible businesses, but also to help banks deliver on their own climate funding commitments.”
