Financial market infrastructure provider SIX and sustainability reporting software provider Greenomy today announced the launch of a new solution that aims to enable SIX banking customers to efficiently assess their customers' sustainability performance and transition trajectories of loans for small and medium-sized enterprises (SMEs).
The new solution comes as banks increasingly make commitments to monitor and improve the sustainability performance of their financing activities, and as they face increasing regulatory pressure to report on ESG aspects of their business value chains. According to SIX, the solution aims to free up operational costs and resources for banks by providing a “one-stop shop” solution for carrying out SME sustainability assessments, from inviting companies to carry out sustainability assessments to monitoring performance metrics. sustainability in line with the EU. CSRD Regulation.
Marion Leslie, head of financial information and executive board member at SIX, said:
“The importance of gaining a clearer picture of the climate credentials of small and medium-sized businesses cannot be overstated. After all, SMEs represent 90% of companies worldwide, not to mention 99% of the EU economy. They also play an indispensable role in promoting innovation and growth. We must do everything we can to ensure that lenders are well informed about the sustainability trajectory of companies seeking financing, not just to ensure that capital flows to the most socially and environmentally responsible companies , but also to help banks meet their own climate finance commitments. ”
According to SIX, the new SME sustainability assessment solution allows banks to define the sustainability trajectories of their borrowers, facilitating the calculation of the EU Banking Book Taxonomy Alignment Ratio (EU BTAR), a new EU regulatory metric that indicates the degree to which a bank's loan book is exposed to SMEs aligned with EU sustainability directives.
By enabling a sustainability dialogue with SME clients, the solution also helps financial institutions support their SME clients to better comply with emerging disclosure and reporting standards, according to the company.
The new solution follows the launch of an alliance between SIX and Greenonomy in December 2023, with the aim of helping financial institutions and companies comply with ESG frameworks, measure and improve sustainability performance and access financing opportunities green.
Constance d'Aspremont, Director of Business Development at Greonomy, said:
“The new SIX SME sustainability assessment solution, powered by Greenomy’s sustainability technology and expertise, aims to ease the reporting journey for SMEs and empower them to take the next steps towards sustainability with confidence. This initiative is further proof of our commitment to empowering companies, SMEs and financial institutions to navigate the sustainability transition.”
