SIX, a financial market infrastructure provider, and Greenomy, a sustainability reporting software company, have introduced a new tool to help banks assess the sustainability of small to medium enterprises (SMEs). This tool is designed to support banks in improving the environmental and social impact of their lending activities. It also helps banks comply with increasing regulations on sustainability reporting.

The solution offers a comprehensive service for banks to evaluate the sustainability of SMEs, from the initial assessment to ongoing monitoring. This is crucial as SMEs form a significant part of the global and EU economy, driving innovation and growth. The tool enables banks to identify how aligned their SME lending is with EU sustainability directives, using the EU Banking Book Taxonomy Alignment Ratio (EU BTAR).

This initiative, resulting from a partnership between SIX and Greenomy established in December 2023, aims to simplify sustainability reporting for SMEs and encourage their progress towards environmental goals. It leverages Greenomy’s technology and expertise to provide a streamlined process for assessing and improving the sustainability performance of SMEs. This effort is part of a broader movement to integrate sustainability into the core of financial decision-making, promoting a shift towards a more sustainable and low-carbon economy.

Link to the news source