Experian launches ESG Insight to help lenders manage climate risk

Data driven solution provides a comprehensive view of SME emissions, together with social impact and governance ratings. Sector proxies overestimate SME emissions by over 200%

UK, 21 November 2022: Experian has announced the launch of ESG Insight, a new service that provides lenders with a much faster, more precise understanding of environmental, social and governance risk (ESG) within their SME lending portfolio. 

The first of its kind, ESG Insight delivers a highly tailored estimate of an SME’s greenhouse gas (GHG) emissions split by scopes 1, 2, and 3 combined with a classification of its social impact and governance levels, sourced from Experian’s unrivalled business reference dataset.

The data-driven solution provides an alternative to previous methods, significantly reducing time and cost, and allowing lenders to gain valuable, actionable customer insights with an ESG lens. Among the wide range of critical factors that are assembled in order to create a view of a company’s emissions are estimated energy consumption, number of employees at a site and the proportion of those that commute by car.

Previously, lenders needed to ask SMEs to undergo a full emission assessment or rely on broad-brush sector wide emissions averages as a proxy.

Simple to deploy, the dataset covers the UK’s 4m SMEs, arming lenders with the relevant information to meet mounting requirements to report and actively manage this increasingly important risk lens.

As of the start of 2022, regulators are actively enforcing requirements for the management of climate-related financial risks, as such a lender needs to understand the climate and broader ESG-risk of its SME customers.

James McGarva, Managing Director of Experian Business Information, said: “SMEs are responsible for 34% of the UK’s total emissions, and yet current estimation processes fail to differentiate between, for example, a small independent bookshop versus a UK-wide frozen-food retailer. This typically means over estimation for smaller businesses by an average of nearly 200%.

“ESG Insight provides a far more comprehensive view of emission estimates, together with social impact and governance ratings, so lenders can confidently baseline, report, and target actions to manage the climate risk with any SME portfolio. We’re excited that our latest innovation is playing a positive role in the global mission to tackle climate change”  


Media contact:

Joe Green 

Senior PR Manager, Corporate & Business, at Experian UK&I

Tel : 07812 737 768 / Email : joseph.green@experian.com   

Brands2Life for Experian


About Experian

Experian is the world’s leading global information services company. During life’s big moments – from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers – we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organisations to prevent identity fraud and crime.

We have 20,600 people operating across 43 countries and every day we’re investing in new technologies, talented people, and innovation to help all our clients maximise every opportunity. We are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index.

Learn more at www.experianplc.com or visit our global content hub at our global news blog for the latest news and insights from the Group.