The new API enables banks to comply with the Partnership for Carbon Accounting Financials (PCAF)
London, September 17th, 2024 – Sage, a leader in accounting, financial, HR, and payroll technology for small and medium-sized businesses (SMEs), has launched a Carbon Measurement API designed to empower banks with the tools they need to support their SME customers on the path to net-zero.
This new solution helps banks enhance their green lending practices by providing an SME-friendly carbon accounting tool that integrates seamlessly into their existing platforms.
"Sage is on a mission to support businesses on their journey to sustainability," said George Sandilands, VP Carbon Accounting, Sage. "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."
Easing pressure on banks
Banks around the world are facing more pressure from the public, governments, and regulators to lower their carbon 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 helps solve these problems by allowing 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).
Darren Pirie, Climate Propositions Lead at NatWest, stated, "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 the process for SMEs
In addition, the 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, 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.
For more information about Sage’s Carbon Measurement API and how it can benefit your bank, please visit: Carbon Accounting Solutions for Enterprise | Sage Earth UK.
About Sage
Sage is a global leader in accounting, financial, HR, and payroll technology for small and medium-sized businesses (SMEs). Our purpose is to transform the way people think and work, empowering business heroes and enabling them to thrive. With Sage Earth, we are committed to helping businesses of all sizes measure and reduce their carbon footprints, fostering a greener, more sustainable future for all.
