Sage, known for its comprehensive suite of services in accounting, financial management, HR, and payroll systems, has introduced a new Carbon Measurement API.
This cutting-edge tool is designed specifically to aid banks in supporting their small and medium-sized enterprise (SME) clients towards achieving their net-zero emissions goals.
The introduction of the Carbon Measurement API marks a significant step forward in green lending. By integrating this tool into existing banking platforms, financial institutions can now offer SMEs a robust solution for carbon accounting that aligns seamlessly with their operational frameworks.
George Sandilands, VP of Carbon Accounting at Sage, explained, “Sage is on a mission to support businesses on their journey to sustainability.
“By fostering a more sustainable business environment and offering tailored green finance products to their customers, banks can now better serve their SME customers by offering the tools needed for accurate carbon reporting, thus driving a greener economy, and in turn, reducing their financed emissions.”
Globally, banks face increasing pressure from the public, governments, and regulatory bodies to reduce their financed emissions. The Partnership for Carbon Accounting Financials (PCAF) initiative, launched in 2019, has set frameworks that many find challenging due to a lack of direct emission data from SMEs. The Carbon Measurement API by Sage facilitates compliance with these PCAF standards by enhancing the quality of emission data, transitioning from general estimates to precise, direct metrics.
Darren Pirie, Climate Propositions Lead at NatWest, said, “We need to provide carbon accounting and decarbonization services to our 19 million business customers in the UK. By partnering with Sage, we are enabling businesses across the UK to embrace sustainable practices with confidence.”
Sage’s solution notably simplifies the carbon reporting process for SMEs. By connecting the Carbon Measurement API to their accounting systems, SMEs can utilize AI and machine learning technologies to automatically collect and analyse data. This streamlined approach not only reduces the complexity involved in carbon footprint analysis but also ensures more accurate reporting to banks during the loan assessment process.
Keep up with all the latest FinTech news here
Copyright © 2024 FinTech Global
