April-May, 2025 | @ green

@ ESG 31

The new ESG dashboard consolidates Pillar 3 disclosure from EU( European Union) and EEA( European Economic Area) lenders into a unified interface, enabling consistent comparison of transition and physical climate risks.

The EBA, underscoring its goal of fostering comparability, stated:“ This dashboard provides benchmarks and enhances the assessment and monitoring of transition and physical climate-related risk across the EU / EEA banking sector.”

Early data from the dashboard reveals that transition risk looms large. In most jurisdictions, more than 70 per cent of corporate lending is tied to high-emission sectors, a concentration that could backfire if regulators tighten rules or technological shifts disrupt business models.

Although the data doesn’ t distinguish individual companies’ decarbonisation efforts, the overall trend“ signals a pressing challenge

for risk management strategies.” Physical risk metrics, however, tell a different story.

Fewer than 30 per cent of banks’ exposures sit in areas flagged for elevated climate hazards- such as floodplains or regions prone to extreme heat.

Even so, the EBA urges caution: uneven geographic coverage and varying assessment methods mean these numbers understate the complexity of physical risk profiling.

Energy efficiency in property lending also came under the microscope. Roughly half of the collateral

for property loans sits in buildings with energy performance ratings( below 200 kWh / m ²)- placing them in the two least efficient categories.

The authority noted that:“ Banks report that they largely rely on proxies and estimates with regard to energy efficiency data, hence the need to interpret this data with caution.”

Moving on to green finance, the Green Asset Ratio( GAR) remains modest, averaging just below three per cent across banks. The EBA attributed this low level both to the early stage of the transition and the strict definitions set by the EU Taxonomy.

“ The currently low level of the indicator owes to the structure of the indicator itself,” it added while noting that more granular, loan-level GAR calculations reveal slightly higher levels of green alignment.

Beyond headline figures, the dashboard offers a deeper insight into specific counterparties, taxonomy eligibility and non-taxonomic sustainable lending activities. By bringing these metrics together, the EBA aims to bolster supervisors’ and investors’ ability to benchmark climate risk and promote more resilient banking practices.

THANKS to a new initiative by Sage Sustainable Electronics( Sage) and Bloom-ESG, businesses can now tap into a certified carbon credit system to retire their tech equipment responsibly.

The system, officially certified under ISO 14064, is the first of its kind tailored for IT asset disposition( ITAD).

The system allows companies to earn verified carbon credits by recycling, reusing or refurbishing old IT equipment.

Sage Chief Executive Officer Bob Houghton explained:“ Carbon credits increase our customers’ return on investment from ITAD.

“ Our clients have long prioritised sustainability in surplus tech disposal- certified credits now reward that commitment with tangible value.”

Research suggests that while recycling a tonne of mixed e-waste prevents around 0.75 tonnes of CO₂, reuse and refurbishment of that same equipment can avoid over 16 tonnes of emissions.

Yet, such gains often went unrecorded due to a lack of verifiable standards.

“ With traceability down to the individual asset level, we

� ASSET TO OFFSET: The new system allows companies to monetise carbon savings from responsible electronics disposal.

can now issue carbon avoidance certificates with complete integrity,

“ This is enabled by Sage’ s chain-of-custody controls and our cloud-based impact platform,” said Bloom-ESG Founding Partner Sebastian Foot.

The certified credits can be used to help offset Scope 3 emissions- typically the most challenging category for companies to reduce- or sold through the voluntary carbon market. Protection is, however, in place to avoid double counting.

Moreover, in celebration of Earth Day- to encourage adoption, Sage is offering 1,000 free carbon credits to clients who renew or sign new Statements of Work by June 30.

The move gives businesses a new way to link IT disposal practices with sustainability goals while gaining measurable returns from actions they may already be taking.- @ green