In this post:
Financing Documents
2 more documents that you should consider,
The ESG Report,
After ESG move to arisk reporting framework
The TCFD report
…Financing Small Business posts at the bottom
Everyone is familiar with the documents that a business takes to the meeting with a funding organization:
BUSINESS LOAN REQUIREMENTS:
A COMPLETE CHECKLIST OF DOCUMENTS
When we talk about business loan requirements, what are the most common documents you need to gather to start your application? Is there any way to prepare yourself and thus increase your chances of getting approved?
Getting your loan application approved is much easier if you are prepared. That means being ready with the documents you need to provide.
Kabbage suggests:
Top 5 Small Business Loan Requirements
For their business loans
1. Personal and business credit influences financing options
2. Small business loans often require a solid business plan
3. Compelling personal résumé can increase loan approvalchances
4. Profit and loss statements as a loan requirement
5. Knowledge of what type of loan needed
To be prepared is half the victory.
Miguel de Cervantes, Spanish author & poet
But NOW in 2021 there are 2 more documents that you should consider, especially if you are a GREEN business. They will bring a financing meeting even closer to a profitable certainty.
Back in 2018, when I started posting about “Financing A Small Business In A Sustainable/Circular Economy The first thing I talked about was ESG.
The 2 new documents that are very important, especially if you have a Green Idea that needs financing, are:
An ESG report
A TCFD-isclosure report
Today, Green Small Businesses are in a much better and even special position to find funding and these 2 reports, up front, will make it that much more effortless, straight forward, uncomplicated, smooth sailing to get funded.
Presently, these reports are becoming mandatory for public companies, but 95% of the businesses in the world are small and private. Soon everyone will need them. In the meantime, if your small business is GREEN, you are already on the road to using this kind of documentation to further your own pursuit.
These 2 reports and the organizations that have been developing them are the focus of the investing community, today. They want to clean up the existing investment industry and develop the tools to invest in the 4th industrial revolution/the Circular Economy. They started with ESG, at PRI with the UN in 2006, an investor initiative in partnership with UNEP Finance Initiative and UN Global Compact.
What is the PRI?
PRI is the world’s leading proponent of responsible investment. It works:
>>> to understand the investment implications of environmental, social and governance (ESG) factors;
>>> to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions.
The PRI acts in the long-term interests:
>>> of its signatories;
>>> of the financial markets and economies in which they operate and ultimately of Environment and Society as a whole.
So if you are new to ESG, how do you get the information to report what your company is doing? One way is through the PRI Academy:
Welcome to the PRI Academy
Our mission is to:
- be the leading provider of ESG education and training services to key stakeholders in global investment and capital markets;
- facilitate the practical implementation of ESG consideration in investment and capital markets to benefit society at large; and achieve these goals in partnership with market leaders across industry sectors.
The PRI Academy addresses the wide-spread skills-gap, lack of industry ESG training and responsible investing in the investment industry. With some 10,000 enrolments in over 70 countries, whether you are an individual, small firm, or large institution seeking to hone your skills to stand out in an increasingly competitive – and evolving – market……
the PRI Academy has a programme to suit all needs and schedules.
The ESG Report
I can see a world in 5 years where ESG is meshed in every asset class and everything we do.
Larry Fink, BlackRock Chairman and CEO
BlackRock is a member of the PRI
There are many who offer advice & tools to prepare your ESG report.
From S&P Global
Subscribe to get ESG in your inbox. and you will find this…..
Esg Global Reporting Tool Adopted By
Australian Securities Exchange (ASX) Companies
At the start of 2021, the first six ASX-listed companies began improving their Environmental, Social, and Governance (ESG) credentials and reporting their progress against the World Economic Forum’s 21 universal ESG metrics, using “ESG on-ramp” technology platform Socialsuite.
>>> After committing to Socialsuite ESG on-ramp in January 2021, Vulcan Energy (ASX: VUL) secured $120M from ESG investors.
>>> Newly committed Province Resources (ASX: PRL) rose 30% on announcing adoption of ESG reporting and raised $18M including from ESG funds.
>>> Three companies have appointed their first female director since adopting the ESG program and other early adopters report making practical progress against their ESG credentials.
>>> Investors are increasingly demanding better ESG.
From Australia
As a global leader in Impact Management systems, Socialsuite’s technology delivers an efficient and rigorous measurement and monitoring service that is simple to use, infinitely adjustable and tailored to your organization’s requirements. Data is collected via one-click electronic surveys conducted in the field, using mobile apps, laptop or email, and over multiple time periods. You determine your program’s goals, and you set outcomes to be measured using universally-accredited standardised metrics or your own parameters.
US | UK | CH | CA | HK
Diginex launches ESG reporting platform aimed at small businesses
Making sustainability reporting easier, faster, and more affordable. $99 per month, with free trial period.
From Milano, Italy
Ecomate The first ESG software suite that includes all the essential products to integrate sustainability into your company. Our algorithms guide you with simple language, instant timing and a competitive cost.
From USA, California
Locus was born out of a vision for our first product, Locus EIM (Environmental Information Management). We knew that developing the solution for delivery via the Internet was the best and smartest technical approach. Over 20 years ago, we decided to make an easier way for enterprises to reach 100% EHS compliance (Environmental, Health and Safety)— simply by using our environmental management software to improve their organizations.
ESG reporting software that truly supports the pursuit of sustainable business
Locus‘ cloud software application integrates EHS compliance and ESG reporting under a single system of record, giving users the tools necessary to optimize their sustainability management and reporting.
Even NASDAQ has a ESG reporting tool
We’re bringing efficiency and simplicity to the ESG reporting process
ESG Reporting Nasdaq OneReport simplifies the process of ESG data capture, engagement, oversight, and disclosure
H O W
N A S D A Q O N E R E P O R T
H E L P S S I M P L I F Y E S G R E P O R T I N G
>>Orchestrate information capture, response management, and disclosure for GRI, DJSI, SDGs, MSCI, Sustainalytics, SASB, TCFD, CDP, and many others – all from one platform.
>>Harmonize and navigate the many CR frameworks, ratings, assessments, lists, indices, standards, metrics, and public reporting demands.
>>Deliver unified and tailored ESG data to raters, investors, and stakeholders.
RepRisk partners Exec. V. P., Alexandra Mihailescu talks about ESG reporting.
RepRisk Executive Vice President, Alexandra Mihailescu – to discuss what investors need to know when using ESG data and how can they avoid check box exercise and greenwashing.
RepRisk partners with Nasdaq to add world’s largest ESG dataset on 175,000 companies to ESG Data Hub
June 2021 – Nasdaq’s new ESG Data Hub launches today, featuring environmental, social, and governance (ESG) risk data on more than 175,000 companies provided by ESG data science firm RepRisk, among data from other providers. The inclusion of RepRisk data in Nasdaq’s new ESG Data Hub provides users with unparalleled ESG analytics and risk metrics, enabling comprehensive risk management, benchmarking, and portfolio optimization.
OK, ESG talks about the essential changes we all need to make for a business to be sustainable. As the Urgency of this need accelerates investors want to know about the risks of climate change in each business they consider to invest in.
An important added step is moving ESG beyond reporting the essential pathways to reporting an overall strategy, and one way to do that is a risk reporting framework: the Task Force for Climate-Related Financial Disclosures (TCFD).
UK Among First to Launch New Regulations – Nov 16, 2020
Mandatory climate risks reporting by companies is emerging around the world. Corporations will soon have to disclose their climate change risks to the public. The UK Government just announced that starting in January 2021, premium-listed companies on the London Stock Exchange will have to report their climate risks to shareholders and the public using the Task Force on Climate-Related Financial Disclosure (TCFD) recommendations. By 2025, the regulation will include a wider swath of companies, investment houses, pension funds and others
This is a game-changer and will affect companies and shareholders.
the TCFD report
On 24 September 2019, the Corporate Reporting Dialogue’s Better Alignment Project Report will be launched at an event hosted by the World Economic Forum during Climate Week NYC. The report will be published on the Corporate Reporting Dialogue website: www.corporatereportingdialogue.com
Where to find the information & tools to prepare TCFD reports
The Task Force on Climate-Related Financial Disclosures | TCFD has developed a framework to help public companies and other organizations more effectively disclose climate-related risks and opportunities through their existing reporting processes.
PRI has an Academy and the TCFD has a Knowledge Hub
New to TCFD recommendations?
The TCFD recommendations are designed to solicit consistent, decision-useful, forward-looking information on the material financial impacts of climate-related risks and opportunities, including those related to the global transition to a lower-carbon economy. They are adoptable by all organizations with public debt or equity in G20 jurisdictions for use in mainstream financial filings.
Online TCFD HUB Courses
The climate-related financial disclosure online courses are designed to help organisations fill the knowledge gap and enhance their disclosures of climate-related information. These courses are suitable for anyone interested in learning more about climate-related disclosure and the TCFD.
At present there are 7 course on their website, more to come…..
How “private equity” can address the TCFD-isclosures
Private equity firms should no longer shy away from the recommendations proposed by the Task Force on Climate-related Finance Disclosures (TCFD) and dismiss them as reserved for the public markets only.
Considering the increasingly severe impacts from climate change globally, Limited Partners (LPs) will increasingly expect General Partners (GPs) to demonstrate how they are addressing climate-related risk in their investments. This demonstration will come through robust disclosures – and the TCFD is the best available framework for doing so. It is true that to date, the lack of tools and guidance available to private equity firms has meant that GPs have struggled to implement some of the more challenging aspects of the TCFD. Recognising this, we’ve launched the Technical guide: TCFD for private equity General Partners. This practical guide aims to support GPs to implement the TCFD recommendations and better assess and manage climate-related risk.
BlackRock was an early participant in the Task Force on Climate-Related Financial Disclosures
For TCFD, there are, also, many who offer advice & tools to prepare your report.
From London, UK
TCFD Reporting: Disclosure Examples, Software, Resources, & Alternatives
What is Rio, exactly?
Rio is a sustainability software platform. Rio includes elements of software tools you may be familiar with (EHS, L&D, GRC, etc.), except in Rio, these features work together to help you achieve one laser-focused goal: improve sustainability performance.
But Rio is also much more than any of those other platforms, because Rio is intelligent.
A software which helps organisations to report against common ESG frameworks such as TCFD is essential in accelerating progress against key targets, legislation and trajectories such as Net Zero Carbon.
Dedicated sustainability software like Rio can streamline the process of data collection, analysis and reporting based on TCFD and other popular frameworks.
Use our in-depth ESG Framework Guide to find the best reporting framework for your organisation and talk to one of our team members to discuss how Rio can assist with your TCFD disclosure needs.
Do you offer discounts to SMEs, public sector organisations, charities, and NGOs?
Absolutely! We’re pleased to offer a 10% discount for qualifying organisations.
We cover everything you need to know about TCFD reporting.
*What is TCFD?
*What are the TCFD recommendations?
*Who discloses using TCFD?
*TCFD disclosure [report] examples
*Preparing for TCFD: Rio is an example of TCFD governance software
*TCFD alternatives
From Houston, TX, USA
https://www.esgenterprise.com/esg-solution/tcfd/
Simplify TCFD Risk Reporting – Streamline corporate ESG management and reporting
TCFD Framework Reporting & Scenario Analysis Solutions
TCFD reporting framework drives corporate climate risk management across the world with science-based targets, reduce climate impact and eventual pathways to carbon neutrality.
Managing financial risk related to climate changes requires business leaders and governments to embrace carbon risk management while accelerating both adaptation and decarbonization.
This software pricing, has a basic free plan, that does not include TCFD. The Startup, Non-profit or School plan costs $9.95 per month and includes TCFD.
From UK, USA, and Singapore
Greenstone
Data that talks to you
The Task Force on Climate Related Financial Disclosures (TCFD).Greenstone is a formal supporter of TCFD and enables its clients to align their reporting with the TCFD recommendations through its software solutions and support services.
What is TCFD?
TCFD Key Features
TCFD Recommended Disclosures
Aligning TCFD with other frameworks
From UK, Canada, USA
The Ecometrica Platform is the only software solution which can incorporate organisational sustainability reporting, detailed spatial analysis, and climate science all in one place.
TCFD Risk Assessor
Location specific data is essential for effective TCFD alignment and analysis. The Ecometrica Platform is the only solution that brings together sustainability reporting and disclosures, and world beating mapping solutions out of the box
From Toronto, ONT, Canada
Manifest’s SaaS platform expedites TCFD reporting
The TCFD recommendations represent the gold-standard in climate-related reporting, as evidenced by their adoption by NGOs, regulatory authorities, and governments alike. Manifest can help you navigate the TCFD process and get you to where you want to go.
From S&P Global
Trucost launches TCFD reporting tool A tool that helps companies report in line with the FSB’s Task Force on Climate-related Financial Disclosures (TCFD) recommendations has been launched by Trucost, part of S&P Dow Jones Indices.
I need to align with TCFD
How can we help you align with TCFD?
Our Trucost climate analytics and specialist support services inform every step of the TCFD reporting journey, from quantifying climate-related financial risks and opportunities to engaging with business stakeholders to turn metrics into action.
The TCFD recommends the use of scenario analysis to assess climate-related risks and opportunities and asks companies to report on the extent to which adequate governance, strategy, risk management, and metrics and targets are in place to address climate issues.
Our approach to TCFD typically includes five steps:
1. Quantify your baseline carbon footprint
2. Apply scenario analysis
3. Identify opportunities
4. Set targets
5. Engage and report
You’re one step closer to unlocking our TRUCOST suite of comprehensive and robust tools. Fill out the form so we can connect you to the right person.
If you are working with an accountant, CPA, someone who has the financial fieldexperience to work with you on the report/s, that would be the best way to start….. These people are definitely adopting ESG and TCFD!
The TCFD recommendations were published in June 2017 and can be downloaded at www.fsb-tcfd.org Consistent adoption of the recommendations will lead to effective measurement and improved company resilience; informed decisions by investors; and better evaluation of risks and exposures by lenders, insurers and underwriters. Successful adoption relies on Chief Financial Officers, like Julie Brown, leading on implementation of the recommendations, accounting bodies guiding their members, and the investment world acting on the disclosures made.
Graeme Pitkethly, Chief Financial Officer at Unilever shares what he thinks needs to be done to progress with climate-related financial information assessment. Visit our website: https://www.cdsb.net/ Sign up for free CPD accredited online courses on the #TCFDHub: https://www.tcfdhub.org/online-courses/ The first courses include: – Introduction to climate-related disclosures – starting your climate journey – Understanding the recommendations of the TCFD – Embedding climate change into financial management – climate-related reporting for accountants. Visit the TCFD Hub: https://www.tcfdhub.org/ Follow us on Twitter: @CDSBGlobal Connect to us on LinkedIn: linkedin.com/company/cdsb
For more information visit https://www.accountingforsustainabili… The FSB Task Force on Climate-related Financial Disclosures (TCFD) recommends a framework for disclosing climate related risks and opportunities, going beyond current practices in two significant ways: Inclusion in mainstream financial filings; and Using scenario analysis to inform business strategy. Karim Hajjar, CFO, Solvay SA explains why it is so important for other CFOs to adopt the TCFD recommendations, and his vision for the future.
The FSB Task Force on Climate-related Financial Disclosures (TCFD) recommends a framework for disclosing climate related risks and opportunities, going beyond current practices. A4S’s Accounting Bodies Network have signed a statement of support for the TCFDs, committing to working together, as a group of accounting bodies, to support their members, representing accountants in 181 countries around the world to adopt the recommendations. To find out more information, including our TCFD Top Tips for Finance Teams and practical examples from Unilever and Tesco, visit https://bit.ly/3bRqb52.
“In economics, things take longer to happen than you think they will, and then they happen faster than you thought they could.”
Rudiger Dornbusch
Mark Carney
the present UN Special Envoy for Climate Action and Finance to prepare for COP26 in Glasgow in November 2021
“… I used the example of BP earlier. There is not a taxonomy that would put BP or any large energy company – in the green camp. But a company that’s moving from brown to beige to olive to green is central to the transition. And we need tools in order to do that.”
*3 part series with suggestions for financing a Small GREEN Business project:
Part #1 – Keep an Open Mind & Incentives offered by your Buyers
Part #2 – Documentation & CE and Sustainability Certificates
Part #3 – Private Funding & Government funding
and now 2 additional post about Waste Commodity tools.
and Waste Online Tools! There Are More Of Them!
Also:
The 2 Reports To Help GREEN Small Business Find Money
After COP 26 – Who Says There Was No Progress?
Intense Financial Talks At COP 26
Horrific Disruptive – Economic Opportunity!
Have You Been RE-THINKING Your Business?
How To Finance Your Own “Green” Recovery – 8 Tips For Small Businesses
(Remember our disclaimer: any company or website mentioned herein are only examples and should NOT be taken as recommendations or endorsements, unless specifically notated.)
Hello Maalot!
Keep up the interesting posts.
Hello Sderot! Hope things are calm by you!
But, Thanks I will keep them up.
Lesley