The EU publishes a new sustainable finance standard for SMEs

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The EU Sustainable Finance Platform (PSF) has published a new sustainable finance standard for SMEs, in order to simplify ESG initiative reporting and facilitate access to the necessary funding for such projects. The report "Streamlining Sustainable Finance for SMEs" presents a voluntary and simplified framework that enables SMEs to facilitate the approval of funding as sustainable by banks and financial institutions. This approach reduces bureaucracy and makes it easier to assess ESG investments. SMEs are crucial for the transition to a net-zero emissions economy as they contribute to 50% of the EU's GDP, but they also generate over 63% of CO2 emissions. However, they often face difficulties in accessing sustainable funding. The new standard aims to break down these barriers by offering a clear framework to demonstrate climate commitment and obtain facilitated financing.

In this initial phase, the framework focuses on mitigation and adaptation to climate change. In the future, it will be extended to other environmental objectives of the EU Taxonomy. SMEs can use this standard to obtain green or transition financing, with a simplified reporting system that facilitates its adoption. The new standard does not consider the Omnibus proposals related to the potential use of the sustainable finance standard for SMEs by companies. As highlighted in the report, "regardless of the legislative process outcome, some SMEs might choose to report voluntarily according to the Taxonomy to access green financing, especially if the Taxonomy's criteria and reporting requirements are simplified".

To access sustainable funding, SMEs must comply with current regulations, avoid sectors excluded by the EU Benchmark Regulation and report on sustainability indicators according to the simplified voluntary reporting standard. This implies adopting business practices that promote reducing the ecological footprint, energy efficiency, and responsible resource management. Additionally, companies must demonstrate their commitment through the documentation of concrete initiatives, such as implementing green technologies or adhering to recognized environmental certifications. To facilitate the process of accessing funds, the EU is developing an online support tool, which will allow companies to assess their eligibility for sustainable funding criteria, offering detailed guidelines and personalized suggestions to improve compliance with the required requirements.

The sustainable finance standard for SMEs represents an opportunity to facilitate the ecological transition of small and medium-sized enterprises, making the process of accessing financing clearer and more transparent. With a defined regulatory framework and adequate support tools, SMEs will be able to obtain the necessary funding to invest in sustainability, adopting innovative solutions to reduce emissions and improve their energy efficiency. This new standard not only promotes the sustainable growth of businesses but also strengthens the entire EU economic ecosystem, promoting more responsible finance that is oriented towards environmental protection. The initiative fits into a broader context of European policies for the Green Deal, aiming to encourage business practices that can generate a positive impact on the climate and society.

This article was created as part of the "Biodiversity services EU expansion" project (CUP: E43D22000480009) under the tender of Regione Lombardia "PR FESR 2021-2027 – LINEA INTERNAZIONALIZZAZIONE 21-27", aimed at supporting the internationalization of Italian companies. 3Bee is the naturetech company that develops innovative technologies for the monitoring, protection, and regeneration of biodiversity, supporting companies in defining customized climate strategies based on the analysis of their impacts and dependencies on nature. With a consolidated portfolio in Italy, Germany, and France and significant partnerships, 3Bee continues its expansion into international markets to create concrete impact through technology.