Sage Launches Carbon Measurement API to Help Banks Support SME Customers Achieve Net Zero

Sage, the accounting, financial, HR, and payroll technology provider for small and medium-sized businesses (SMEs), has launched a new Carbon Measurement API designed to empower banks with the tools they need to support their SME customers on the path to net zero.

With banks around the world facing more pressure from the public, governments, and regulators to lower their carbon emissions, Sage is aiming to help them enhance their green lending practices. By providing an SME-friendly carbon accounting tool that integrates seamlessly into their existing platforms, Sage is hoping to make a significant impact in supporting net zero goals across the globe.

George Sandilands, VP of carbon accounting at Sage

“Sage is on a mission to support businesses on their journey to sustainability,” explained George Sandilands, VP of carbon accounting at Sage. “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.”

Since the launch of the Partnership for Carbon Accounting Financials (PCAF) framework in 2019, banks and financial institutions have found it hard to track the emissions linked to the businesses they fund because they don’t have enough direct data from SMEs. On the other hand, SMEs often have a tough time reporting their own emissions because they lack the tools and resources needed to measure their carbon footprint.

Sage’s Carbon Measurement API looks to solve these problems by enabling banks to meet PCAF standards, which offer a clear way to measure and report the greenhouse gas emissions linked to their loans and investments. The new Sage tool helps banks improve the quality of their data, moving from less detailed information (PCAF 5) to more accurate, direct data (PCAF 2).

Automating data collection processes

Sage’s new solution simplifies the process for SMEs, making it easy for them to understand and report their carbon emissions. SMEs can further refine the accuracy of their carbon footprint by connecting to their accounting software, and leveraging advanced AI and machine learning (ML) technologies to automate data collection and analysis. All of this can then be easily reported to banks assessing SME customers’ emissions profiles during the lending process.

Darren Pirie, climate propositions lead at NatWest, explained: “We need to provide carbon accounting and decarbonisation 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.”

The post Sage Launches Carbon Measurement API to Help Banks Support SME Customers Achieve Net Zero appeared first on The Fintech Times.

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