Discover CRIF's new indicators for assessing ESG maturity and natural hazard risks. Meet regulatory requirements, facilitate credit decisions and promote the transparency and comparability of European credit portfolios with the ESG Basic Indicator and Physical Risk Indicator.
As a leading information service provider, CRIF GmbH is now offering new indicators for assessing the ESG maturity level and the risks of natural hazards for companies based in the EU.
This information was requested by the European Banking Authority and BaFin and increases the pressure on credit decisions. The ESG Basic Indicator assesses the degree of a company's sustainability efforts regarding the most important environmental, social and governance aspects and, thanks to a uniform assessment methodology applicable to all EU companies, enables comparability of European credit portfolios. The 15 ESG criteria defined by the European Banking Authority (EBA) in 2021 are covered and transition risk is calculated with separate indicators and incorporated into the ESG Basic Indicator.
The Physical Risk Indicator assesses the risk potential of 18 natural hazards, thereby helping to meet regulatory requirements. Banks and financial services institutions can use the new indicators to make their credit decisions based on standardised and structured information. The indicators assess business partners' sustainability efforts and risk potential. The assessment is based on actual economic indicators of companies from European company databases.
With these new indicators, CRIF is closing an important information gap for European banks and financial services institutions. Small and medium-sized companies, as well as unlisted companies, generally do not produce sustainability reports, which makes it difficult to collect structured and standardised ESG data. CRIF's new indicators will make it easier to meet regulatory requirements and contribute to the transparency and comparability of European credit portfolios.
