{"id":4210,"date":"2023-11-03T14:00:10","date_gmt":"2023-11-03T14:00:10","guid":{"rendered":"https:\/\/verso.de\/blog\/esg-in-financing-this-data-decides-on-loans\/"},"modified":"2026-02-10T07:16:34","modified_gmt":"2026-02-10T07:16:34","slug":"esg-in-financing-this-data-decides-on-loans","status":"publish","type":"post","link":"https:\/\/verso.de\/en\/blog\/esg-in-financing-this-data-decides-on-loans\/","title":{"rendered":"ESG in financing: This data decides on loans"},"content":{"rendered":"\t
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03.11.2023<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t

ESG in financing: This data decides on loans<\/h1>\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t“Your loan application has been rejected.”\nSome companies may hear this or similar sentences more often in the future.\nThe reason: they were unable to provide the ESG data requested by the bank or meet the requirements.\nAfter all, sustainability is also becoming increasingly important in the financial sector. Read this article to find out how ESG data affects financing and what data companies need to provide now to ensure their loan applications continue to be approved.\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/section>\n\t\n\n\n\t

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How to take a closer look at financing applications<\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

Sufficient equity, high cash flow, a secure market position and a solid corporate strategy – if a company could demonstrate this when applying for financing, the loan was as good as secure.
\nThis is now a thing of the past.
\nThis is because ESG criteria are now also included in the credit decision.
\nBut how does this come about?
\nLet’s take a quick deep dive to answer this question.
\nIf you are not so familiar with financial topics: Don’t worry – even though we’ll be taking a close look at all the important points, we’ll stay in the non-swimmer’s area.<\/p>\n

Green Deal, Climate Protection Act, SFDR, MaRisk: many requirements – one goal<\/h3>\n

The background to this new development is a large number of requirements as part of the EU’s sustainability strategy.
\nLet’s work our way from the outside in.
\nWith the European Green Deal<\/a>, the member states of the EU have committed themselves to the sustainable transformation of society, the economy and industry.
\nThe EU wants to become climate-neutral by 2050.
\nAt the same time, Germany has set itself the target of becoming greenhouse gas neutral by 2045 with its new Climate Protection Act <\/a>.
\nEurope is playing a pioneering role internationally with this plan.
\nThe task now is to put the Green Deal into practice and find ways to get the sustainable transformation moving.
\nAnd probably the most powerful lever for tangible change in the economy is – precisely – money.
\nIf you want to drive sustainability forward, you have to redirect financial flows.<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n\n\t

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No gap in the loan application<\/h2>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t

Efficient, transparent and audit-proof: with VERSO’s ESG software, you can provide your bank with all the required sustainability information without any gaps.
\r\nFind out more now: <\/p>\n\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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Sustainable Finance Disclosure Regulation<\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

With the Sustainable Finance Disclosure Regulation(SFDR<\/a>), the EU introduced a measure in 2019 that obliges financial market participants such as banks and credit institutions to be more sustainable.
\nThe SFDR’s approach: banks must make the sustainability and ESG aspects of their financial products transparent.
\nHow do ESG criteria affect the products?
\nAnd conversely, how does financial trading affect the environment and society?
\nThe 7th MaRisk amendment<\/a> obliges banks, among other things, to take ESG aspects and risks into account when making and monitoring lending decisions.
\nSimilar to what insurance providers have been doing for years, banks and credit institutions will therefore check, for example, which industry a company belongs to, how high its emissions are or what the situation is regarding equal rights.
\nAccording to the study “Consideration of ESG criteria in the credit process for corporate customers”<\/a> (2023), only 38% of the banks surveyed take ESG risks into account.
\nHowever, the consequences of this development are already being felt.
\nFor example, banks and funds already rejected STEAG’s application in 2021 – partly because the electricity producer operates several coal-fired power plants and is pursuing an uncertain coal phase-out strategy<\/a>. <\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n\t

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No financing without an ESG check: banks want to see this data now<\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

In addition to the general CSR reporting obligation<\/a>, there are therefore further obligations – at least for companies that require financing.
\nBut what specific sustainability information is now required?
\nThe Association of German Banks has put together an initial list of questions<\/a> that compiles sustainability KPIs.
\nThe basic ESG KPI catalog is based on the CSRD<\/a>, the EU taxonomy<\/a> and various reporting standards such as GRI.
\nIn addition to general information on the company, you will find questions on the following ESG aspects in this overview:<\/p>\n