“There’s no doubt that protecting the environment for future generations is the number one most pressing challenge for individuals, businesses and governments today. Financial institutions will play a crucial role in the transition to a green economy. For banks in particular, efforts to reduce their impact on the environment and promote good governance and social responsibility are going to be more and more important in the near future.”
CRIF, a provider in Europe for consumer and business credit information and integrated decisioning solutions, has unveiled an ESG Analytics tool designed for UK banks.
The tool enables banks to quickly and effectively assess the environmental, social, and governance (ESG) profiles of their UK and EU-based suppliers, partners, and customer portfolios.
Crif’s ESG Analytics leverages over 130 indicators
Drawing from over 130 key indicators sourced from the UK and EU, ESG Analytics provides comprehensive insights into critical aspects such as water usage, waste production, emissions, health and safety records, modern slavery, and inclusiveness. With this launch, CRIF leverages its unique repository of ESG data and its extensive experience in advanced analytics to offer businesses a swift, accurate evaluation of the ESG credentials of their UK and European associates.
The tool requires only the VAT or registration number of a UK or European business to generate an ESG score, along with detailed environmental, social, and governance indicators. This process eliminates the need for direct engagement with the companies being assessed. UK banks stand to benefit significantly from this service, as it aids in identifying sustainable and ethically conscious businesses, supports their ESG objectives, and ensures compliance with reporting and regulatory requirements.
UK currently lacks a unified ESG law or regulation
The introduction of ESG Analytics comes at a pivotal time. The UK currently lacks a unified ESG law or regulation, relying on a mix of domestic and EU-derived laws. However, with the government’s Edinburgh reforms in December 2022, there’s a move towards exploring a potential regulatory regime for financial providers.
Alongside Synesgy, CRIF’s existing ESG service, ESG Analytics aims to set an international standard in corporate sustainability, with over 600,000 companies, including 350 banks and insurers, in more than 80 countries already utilizing the service.
Sara Costantini, CRIF’s Regional Director for the UK & Ireland, said: “There’s no doubt that protecting the environment for future generations is the number one most pressing challenge for individuals, businesses and governments today. Financial institutions will play a crucial role in the transition to a green economy. For banks in particular, efforts to reduce their impact on the environment and promote good governance and social responsibility are going to be more and more important in the near future.
“Considering the growing attention of the regulatory bodies towards ESG compliance in the EU but also in the UK, ESG Analytics enables banks, insurers and corporates to understand the impact of businesses they work with today and helps to inform their decision-making in this ever-more important area of work. And by working with regulatory bodies all around the world, we ensure that we remain at the forefront of regulation so we can pass this knowledge onto UK financial institutions.”
