Brussels: Rachel Dignam, Director of EU and International Affairs at Sage, has called on governments and financial institutions to simplify sustainability reports, highlighting the growing need for accessible green finance options tailored for small and midsize enterprises (SMEs).

According to Azeri-Press News Agency, Dignam stated that 73% of financial institutions currently offer green bonds and sustainable finance options for SMEs. However, she emphasized that the Environmental, Social, and Governance (ESG) factors, which play a significant role in credit offerings, are often challenging for SMEs to meet due to complex report requirements.

Dignam pointed out that 80% of creditors identify ESG data as a major issue, with the absence of a standardized approach to data requests placing additional pressure on smaller SMEs. While digital tools and data automation present potential solutions, they are not yet the primary methods utilized to alleviate this burden for SMEs.

She further urged governments, financ
ial institutions, and technology providers to work toward simplifying these sustainability reports, expanding access to digital tools, developing robust data infrastructure, and increasing financial incentives to support SMEs in meeting ESG requirements.