Following this announcement, UK banks and financial institutions will be given the possibility to assess the environmental, social, and governance (ESG) profile of their UK and EU-based suppliers, collaborators, and customer portfolio quickly and effectively. This will take place by leveraging new data repositories and scoring solutions.
The ESG Analytics from CRIF was designed in order to draw on over 130 key indicators derived from UK and EU information sources, waste production, emissions, health and safety records, analysing information on important areas such as a business’ water usage, as well as modern slavery and inclusiveness. By leveraging the company’s repository of ESG data, and its expertise in advanced analytics, businesses and firms will be enabled to access a quick and accurate picture of the ESG credentials of all the UK and European businesses they work with or are considering working with.
In order to access these credentials, financial institutions and banks will only require the VAT or registration number of a UK or European business, in order to get an ESG score along with the granular environmental, social, and governance indicators. This will take place without the need to engage with the individual company itself.
Included in the list of benefits that UK financial institutions and banks will be enabled to access are the possibility to identify the most sustainable and ethically conscious businesses they work with, as well as prioritising those partnerships and issuing green finance. At the same time, banks will be allowed to identify potential collaborators to work with in the future, while supporting their own ESG objectives and strategies to further accelerate their own sustainability journey (for example, financial institutions will have the opportunity to be aware of natural resource consumptions and their overall impact on biodiversity).
In addition, UK banks will have the possibility to meet reporting and compliance requirements for stakeholders, investors, and overall regulatory bodies, while also minimising potential risk in the organisation they work with and putting remedies in place. This is expected to happen in order to deal with any ESG exposures of their suppliers or clients.
The new CRIF’s ESG Analytics solution will complement the company’s existing ESG service, the Synesgy, which was developed in order to allow businesses to easily understand the ESG implications of their entire supply chain. This will take place by enabling them to collect and view ESG reports and the sustainability ratings of the other companies that they work with.
While Synesgy was based on reporting data from questionnaires for both firms and their suppliers, (which will take a more detailed, long-term approach in order to analyse the ESG impact of businesses), the ESG Analytics of CRIF is expected to enable firms to take action and become ESG-compliant. In addition, the solution will optimise the manner in which they meet their sustainability goals and protect the environment for future generations.
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