SIX is spearheading the push for greater inclusion of small and medium-sized enterprises (SMEs) in financial markets, recognising their crucial role in transitioning to a sustainable, low-carbon economy through their partnership with Greenomy. Their latest offering, the SME Sustainability Assessment Solution, leverages Greenomy’s leading software-as-a-service platform to help SIX’s banking clients efficiently evaluate the sustainability performance of their SME customers. This solution also delineates the sustainability transition paths for these borrowers, facilitating the calculation of the EU’s Banking Book Taxonomy Alignment Ratio (EU BTAR). This regulatory metric indicates how much a bank’s loan portfolio aligns with EU sustainability directives, aiding in meeting reporting obligations. Furthermore, by fostering sustainability discussions with SME customers, this solution assists financial institutions in helping their SME clients adhere to emerging disclosure and reporting standards, promoting sustainability enhancements and enabling SMEs to assess their sustainability and climate risk management journeys.
The SME Sustainability Assessment Solution by SIX aims to streamline banks’ operational costs and resources by offering a comprehensive solution for conducting sustainability assessments of SMEs—from inviting companies to complete assessments to ongoing monitoring of sustainability metrics in accordance with the EU’s Corporate Sustainability Reporting Directive (EU CSRD) and EFRAG’s European Sustainability Reporting Standards (ESRS). It provides step-by-step guidance throughout the corporate sustainability assessment process, aligning with the EU Taxonomy requirements. Moreover, the solution facilitates the effortless retrieval of a standardised set of metrics to support green lending decision-making in accordance with the EU’s Green Assets Ratio (GAR) for identifying EU-Taxonomy-aligned assets and EU BTAR calculation
Source– SIX Launches New SME Sustainability Assessment Solution Powered by Greenomy | Six Group (six-group.com)
About the Authors
Associate Director, Investment Banking
Prachurjya has over 16 years of experience in investment banking with Acuity Knowledge Partners. At Acuity, he has led sector and product-specialist pilot teams across Capital Markets, ESG, Debt Advisory, Loan Syndications, Metals & Mining and Real Estate. He has been actively involved in setting up and on-boarding new ESG Advisory, ESG DCM and Sustainable Finance teams for various bulge bracket investment banks. Within DCM and Rating Advisory, he has been instrumental in helping the clients achieve over 30% in annual savings on both regular and adhoc tasks through standardization of the outputs and deployment of our proprietary BEAT tools.
Delivery Manager, Investment Banking
Puja has 7 years of extensive experience in ESG, Climate Change & Sustainability and she is supervising the ESG team at Acuity. She also has diverse experience in conducting ESIA, EHS compliance audits, ESG Risks and Controls, EHS & ESG Due Diligence assessments. Prior to joining Acuity, she was working with companies like KPMG Global Services, EY India and ERM India. She has expertise in provisioning extensive research requirements for clients through preparation of Peer Benchmarking, Target Compilation, Sustainability report, Sustainable Finance Updates and Sectoral ESG Thematic Detailing Engagement.
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