Mastercard

Data-Driven Green Banking: Banks Supporting SMEs’ ESG Reporting—Focus on Biodiversity

Mastercard and their challenges

  • Anticipating environmental regulatory changes that may affect SMEs (CSRD).
  • Integrating the concept of biodiversity into SMEs’ impact measurement, facilitated by banks.
  • Building common foundations and standards to simplify SMEs’ reporting on a complex issue: biodiversity.

Our approach

  • Analysis of regulations, barriers, risks, and opportunities in SMEs’ ESG reporting.
  • Identification and mapping of existing standards, tools, and open data.
  • Proposal of a cross-sector data roadmap to facilitate SMEs’ ESG reporting and help them respond to increasing demands.

Benefits

  • Identification of 25 tools for measuring impact and dependence on natural resources.
  • Highlighting the technical needs and barriers within SMEs to meet ESG reporting demands.
  • Creation of the first inter-bank ecosystem focused on biodiversity.

Challenges

SMEs, biodiversity, and data — the need for a systemic approach.

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

Structuring a forward-looking approach to impact reporting on biodiversity through a data lens.

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:

  • Analyzing regulations, barriers, risks, and opportunities in SMEs’ ESG reporting.
  • Identifying and mapping existing standards, tools, and open data.
  • Proposing a cross-sector data roadmap to facilitate SMEs’ ESG reporting and help them respond to increasing demands.

Benefits

A 360° view of the challenges, actors, and tools to support an innovative roadmap.

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.

Our other client cases

Facilitating the Deployment of a Strategic Plan through Ecosystem Knowledge
A Data Management Standard for Driving CSR Performance
Increasing the Impact of Support Programs for the Newspace Ecosystem through Data

Contact us to find out more!