Experian Launches Solution Providing Lenders with ESG ratings, Emissions Estimate for SMEs

Data services provider Experian announced today the launch of ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Insight, a new solution aimed at providing lenders with an understanding of ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. 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 socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. impact and governanceGovernance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. 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 ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. 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:

“ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Insight provides a far more comprehensive view of emission estimates, together with socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. impact and governanceGovernance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. 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” 

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