Data services provider Experian announced today the launch of ESG Insight, a new solution aimed at providing lenders with an understanding of ESG risk within their SME portfolios
Launching with a dataset covering the UK’s 4 million SMEs, the new service provides information including estimates greenhouse gas (GHG) emissions, split by Scopes 1, 2, and 3, as well as social impact and governance ratings.
The solution utilizes a wide range of factors to create a company emissions view, including estimated energy consumption, number of employees at sites, and the proportion of employees commuting by car.
According to Experian, the new service is being launched as regulators enforce requirements for lenders to understand the climate and broader ESG risk of their SME customers, and offers an alternative to asking SMEs to undergo full emissions assessments, or relying on sector-wide emissions averages.
James McGarva, Managing Director of Experian Business Information, said:
“ESG Insight provides a far more comprehensive view of emission estimates, together with social impact and governance ratings, so lenders can confidently baseline, report, and target actions to manage the climate risk with any SME portfolio. We’re excited that our latest innovation is playing a positive role in the global mission to tackle climate change”