Our expertise
Ecosys Group » Our publications » Data-Driven Green Banking: Banks Supporting SMEs’ ESG Reporting—Focus on Biodiversity
Mastercard
Challenges
The concept of biodiversity is complex, encompassing both living and non-living elements within our natural resources. This “stock” is currently exploited to develop human activities, catering to our comfort and needs. However, human impacts on biodiversity pose risks to its ability to meet our needs. Thus, understanding the impacts of our economic activities on biodiversity is crucial for initiating a genuine environmental transition, rooted in our business models.
Nevertheless, measuring impacts on biodiversity is hindered by limitations: a multiplicity of initiatives, standards, and tools, with a lack of common data for collaborative work on this subject.
Beyond the voluntary approach to measuring and mitigating the impacts of our activities on biodiversity, societal pressures are influencing regulations that demand better reporting on nature’s impacts. Notably, the CSRD and SFDR are beginning to target large corporations and banks on these issues, with increasingly broad reporting requirements, including their entire value chain. Consequently, SMEs find themselves subject to various constraints, including the reporting of their environmental impacts, despite limited resources, knowledge, and data. These requests (still non-uniform) place demands on teams and expose them to economic and brand reputation risks. Therefore, a streamlining of ESG reporting needs to be established, with banks as one of the key players.
Our approach
Banks play a central role in supporting and monitoring SMEs. Bank advisors possess extensive data on their clients and are best positioned to aggregate ESG data to assist their portfolios in understanding their impacts, using biodiversity as a theme, for instance.
In this forward-looking approach, we assisted the interbank sector in:
Benefits
By mobilizing an inter-bank ecosystem dedicated to biodiversity, ECOSYS Group has consolidated the sector’s scattered efforts through a coherent, systemic approach.
Thanks to this approach, nearly 45 individuals (SMEs, Banks, Financiers, Public Actors) have come together within BPI France to pave the way for a coordinated approach to the role of the bank advisor in facilitating ESG reporting by SMEs, from the biodiversity angle.