Small and mid-sized lenders face unique challenges when it comes to the climate transition.
Constrained budgets, few ESG leads, and less regulatory pressure experienced than larger lenders; there are understandable reasons for a lack of progress among SMEs.
However while it may be the beginning of the journey, the PRA’s soon to be updated climate supervisory statement (SS3/19) does require all lenders to identify and begin handling climate-related risks, irrespective of size.
The expansion of TCFD disclosure requirements through the ISSBs IFRS standards is also likely to impact smaller lender in the coming years.
Forming a climate plan isn’t as daunting as it seems. There are a few basic steps small lenders can take to credibly decarbonise and disclose while balancing limited time, budgets and resources.
We’ve created this guide to show lenders how to approach climate planning, from climate risks and financed emissions, to data quality and regulatory reporting. Download below for more information, or book a consultation to discuss our bespoke SME package.
