Sage Launches Carbon Measurement API for SMEs and Banks
Key Takeaways
Sage has launched a Carbon Measurement API for banks to help SMEs get to net zero.
The API makes green lending easier for SMEs with a carbon accounting tool.
It helps banks meet the PCAF framework for carbon reporting and reduce financed emissions.
SMEs get simplified reporting and integration with their existing accounting software.
Sage, the market-leading provider of accounting, financial, HR and payroll software for small and medium-sized businesses (SMEs) has released a Carbon Measurement API.
This will enable banks to help their SME customers get to net zero.
The API allows banks to make green lending easier by offering a simple carbon accounting tool that integrates with their existing systems.
George Sandilands, VP of Carbon Accounting at Sage, says: “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, banks can better serve their SME customers. They now have the tools needed for accurate carbon reporting. This helps drive a greener economy and, in turn, reduces their financed emissions."
Banks Challenges
Banks are under pressure from the public, governments and regulators to reduce carbon emissions. Since the Partnership for Carbon Accounting Financials (PCAF) framework was introduced in 2019, financial institutions have struggled to track the emissions of the businesses they fund, mainly because of a lack of direct data from SMEs. Many SMEs face challenges in reporting their emissions because they do not have the right tools and resources.
Sage’s Carbon Measurement API solves these problems by helping banks to comply with PCAF standards, which provide a structured approach to measuring and reporting the greenhouse gas emissions of their loans and investments. This tool improves data quality for banks, from less detailed data (PCAF 5) to more granular data (PCAF 2).
Darren Pirie, Climate Propositions Lead at NatWest, says: “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."
Simplifying for SMEs
The API also simplifies the reporting process for SMEs so they can track and communicate their carbon emissions. By integrating with their accounting software, SMEs can get a more accurate carbon footprint through advanced AI and machine learning that automates data collection and analysis. This simplifies the process for banks to assess SMEs’ emissions profile during the lending process.
For more details about Sage’s Carbon Measurement API and its benefits for your bank, visit Carbon Accounting Solutions for Enterprise | Sage Earth UK
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Source: Sage
