SIX, in partnership with ESG reporting specialist, Greenomy, has announced the launch of a new product, SME Sustainability Assessment Solution. Using Greenomy’s software-as-a-service platform, the solution will facilitate the measurement of SME firms’ sustainability performance, allowing banks to better assess the climate and sustainability risk trajectories of their SME debtors.

The ability to assess sustainability risk trajectories is necessary for calculating and supporting a bank’s reporting requirements for the Banking Book Taxonomy Alignment Ratio (BTAR). The ratio is an EU regulatory metric that indicates the degree to which a bank’s loan book is exposed to SMEs aligned with EU sustainability directives.

A one-stop-shop

In a press release, SIX described the platform as a “one-stop-shop solution”. It offers a sustainability assessment companies can choose to complete, and ongoing monitoring of sustainability metrics in line with the EU’s Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) by the European Financial Reporting Advisory Group (EFRAG). Other features include step-by-step guidance along the corporate sustainability assessment journey with a framework aligned with EU taxonomy requirements, and a standardised set of metrics to support green lending decision making.

PostTrade 360 Nordic 2024