Credit Score

4most to develop a “green credit score” for SMEs

UK credit risk consultancy 4most has secured government support to develop a green credit score that will offer cheaper financing to environmentally conscious SMEs.

The Green Credit Score is jointly developed by 4most, as well as cleantech consultancy Meckon and international fintech lender, Swishfund. The project aims to provide a comprehensive set of data, credit risk analysis and scorecard, which 4most will make available to all credit institutions in the UK, including credit reference agencies and credit self-decision platforms.

The Green Credit Score will inform SMEs of their current carbon impact, inform them of the main risks for their business in the transition to a low carbon economy and provide them with the tools to help mitigate these risks, while reducing direct emissions. and indirect carbon. .

Ivelina Nilsson, Client Partner and Head of Climate Change at 4most, says, “This project will create a virtuous cycle of measuring carbon footprints, risk-based financing and driving climate action. To develop the Green Credit Score, we plan to collect data from potential borrowers to estimate the different aspects of climate change risk to which they are exposed.