Equifax UK has unveiled its Financed Emissions Calculator, a cloud-based tool designed to help financial institutions streamline sustainability reporting and improve the accuracy of emissions data.
Developed in partnership with environmental data technology firm CienDos, the solution aims to transform how banks, lenders, and asset managers calculate and report their financed emissions.
ADDRESSING SUSTAINABILITY REPORTING CHALLENGES
Financed emissions refer to the greenhouse gas emissions indirectly attributed to financial institutions through their lending and investment activities. These emissions, which can account for up to 95% of a financial institution’s total carbon footprint, form a significant part of Scope 3.15 reporting requirements.
With regulatory frameworks such as IFRS S2 placing greater emphasis on climate-related disclosures, many financial institutions still rely on manual calculations and high-level estimations to track their financed emissions. However, Equifax claims these methods often lack granularity, accuracy, and real-time traceability, making it difficult to project future scenarios or track emissions effectively.
Equifax’s new solution integrates commercial credit insights with CienDos’ emissions data methodologies, providing sector-specific carbon values for every credit line within a bank or lender’s portfolio.
Brad Davies, ESG product manager at Equifax UK,said: “The role of financial institutions in helping to combat climate change is gaining significant attention, but indirect financed emissions associated with loans and other credit lines are among the most complex to track.
“By integrating environmental data with leading financial risk assessments, the Financed Emissions Calculator empowers UK lenders to measure and mitigate their climate impact. We’re excited to partner with CienDos to fill the knowledge gaps for clients with this first-to-market solution.”
Julia Salmond, chief executive at CienDos, added: “Equifax and CienDos have a shared vision to simplify the complex reporting requirements around financial firms’ carbon footprints.
“As a critical player at the heart of the UK financial ecosystem, Equifax’s extensive commercial credit data successfully combines with our own market-leading emissions data technology to help transform the management of portfolio emissions for firms, delivering greater accuracy and precision for their financed emissions reporting needs.”
