Title page

Contents

Acknowledgements 4

Introduction 6

Key findings 8

Strategies, targets, transition plans and climate integration in operations 8

Financing instruments and non-financial support for SME clients 9

Sustainability-related data requirements from SME clients 9

Financing SMEs for sustainability - Financial institution strategies and approaches 10

Strategies, targets and transition plans 10

Climate considerations in operations 14

Drivers of climate action and the provision of sustainable finance to SMEs 20

Barriers to climate action and the provision of sustainable finance for SMEs 22

Financing instruments and non-financial support 24

SME data and reporting on climate and sustainability 30

Climate-related reporting 32

Conclusions and next steps 37

Glossary of terms 39

Figure 1. What types of sustainability-related strategic documents and targets does your institution have in place? (% of respondents, multiple answers possible) 11

Figure 2. In your view, what are the key challenges in setting emissions targets? (% of respondents) 12

Figure 3. Does your institution have strategies and/or targets related to its performance on the following environmental sustainability considerations?... 13

Figure 4. How (if at all) does your institution integrate climate considerations in its financing/investment decisions? (% of respondents, multiple answers possible) 15

Figure 5. Are climate-related risks reviewed regularly at Executive Committee or Board of Director meetings? (% of respondents) 16

Figure 6. Are executive compensation and managerial incentives linked to climate-related outcomes? (% of respondents) 17

Figure 7. With regard to your SME clients, what are the key challenges you face in integrating climate-change considerations in financing/investment decisions?... 18

Figure 8. How (if at all) is your institution developing employee awareness and expertise on climate-related issues? (% of respondents, multiple answers possible) 19

Figure 9. Who are the targets of the capacity building offers? (% of respondents, multiple answers possible) 19

Figure 10. Rate the importance of the following factors in driving action on climate/net-zero in your institution. (% of respondents) 21

Figure 11. Rate the importance of the following constraints to climate/net-zero in your institution. (% of respondents) 23

Figure 12. Does your institution provide any financing/investment products classified as: (% of respondents, multiple answers possible) 25

Figure 13. Which taxonomy/guideline or method do you utilise to define what is green or sustainable investment? (% of respondents) 26

Figure 14. Which of the following types of tailored instruments does your institution use to finance SMEs' sustainable or green investments? (% of respondents,... 27

Figure 15. What type of non-financial support does your institution offer to SMEs to build their capacity to measure, report and take action on climate-change and... 29

Figure 16. How is sustainability-related data obtained for small and medium-sized (SME) clients for the purposes of financing/investment decisions? (% of respondents,... 31

Figure 17. Does your institution publish/release a dedicated climate report or otherwise report on its climate performance? (% of respondents) 32

Figure 18. Does your institution report on its operational GHG emissions? (% of respondents) 34

Figure 19. What are the biggest challenges that your institution faces in measuring and reporting on your own climate performance as well as financed emissions?... 35