For Finance
A complete sustainable finance solution for banks and other capital providers
The University of Cambridge recently identified that half of the estimated $100 trillion investment needed to get global supply chains to net zero by 2050 will need to go to SMEs.To realise this opportunity unlocking financial flows between Banks, other financial institutions and those SMEs is critical.
FourTwoThree helps Banks and Financial Institutions (FI) manage their SME relationships and collect data to PCAF standards to support four critical outcomes:
Financed emissions measurement
Managing the downstream emissions associated with capital allocation activities
Under the Greenhouse Gas (GHG) Protocol's Scope 3 reporting framework, Category 15 covers emissions that are a result of financial capital provision from banks, asset managers and other funding facilitators. This category accounts for emissions that impact more than a Bank's or Financial Institution’s (FIs) direct operations.
Any Bank or FI who supports SMEs with lending or other capital allocation services will need to consider how to measure and optimise how that capital is being used by their SME customers.
FourTwoThree provides complete GHG visibility across SME portfolios, enabling Banks and FIs with the access to SME data (subject to customer consent) to establish an aggregate baseline and understand the potential for change across different sectors and portfolios.
Risk mitigation
Managing SME portfolio risk with better data
Increasingly SMEs are being asked to provide accurate GHG footprint. The 2024 UK Net Zero Business Census identified 37% of SMEs have received a request from a customer or tender application in the last 12 months to supply carbon emissions data, a trend that is likely to continue as regulation, shareholder and customer pressure continues to impact the need for larger businesses and industries to manage their Scope 3 emissions.
Increasingly those businesses who can provide accurate emissions data and credible transition plans to their customers and supply chains will be advantaged in their operations, in turn decreasing any credit risks associated with supply chain sustainability compliance.
FourTwoThree enables any SME to easily share a GHG footprint, action plan and attestation with their customers or other parties. Any SME Customer who accesses the FourTwoThree platform using a Single Sign-On architecture may also be able to rely on the “Know Your Business” checks that a Bank or FI will have already conducted, making their disclosures far more reliable for recipients.
Banks and FIs can also work directly with their institutional customers to deploy the FourTwoThree platform to their SME supply chains.
Origination
Unlocking opportunities for Financing and Support
As individual SMEs or larger supply chains seek to adapt their operations to reduce their climate impact, sustainable financing will be required. Many SME customers will be individually able to identify financeable actions that will help them to become better businesses.
For SME that operate in supply chains, their institutional customer may recommend or even mandate actions that help that institution to manage their aggregate Scope 3 emissions attributable to their SME suppliers.
FourTwoThree helps Banks and FIs to directly support their SME customers through a series of platform capabilities:
Suggested actions
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The FourTwoThree platform contains a base set of actions that can guide SMEs to make commercially viable operational changes. The platform automatically guides SMEs to consider the most relevant actions that align to their emissions profile. Additional actions (for example actions that are sector specific) can be easily configured.
Recommend relevant products
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The FourTwoThree platform enables Banks and FIs to link their customers directly to relevant financial products that support any identified action.
Integrate with existing CRM systems
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The FourTwoThree platform event API links to industry Customer Relationship Management (CRM) solutions like Microsoft Dynamics 365 or Salesforce notifying your Relationship Managers or Digital Services when an SME has performed an action that may require customer engagement.
Framework assessment
Automating the assessment of opportunities against sustainable lending and other decisioning frameworks
FourTwoThree is also developing the automated capability to assess any SMEs data profile against the frameworks that support sustainable financing, subsidies and compliance with supply chain requirements.
This groundbreaking functionality will enable a Bank or FI to automatically understand:
- Does my SME customer financing opportunity meet my institutions sustainable financing criteria?
- Does my SME customer financing opportunity meet the sustainable financing criteria from other secondary market providers?
- Does this SME customer or customer opportunity qualify for any subsidy or additional support?
- Does this SME customer meet the sustainability criteria for any supply chain or other industry framework?
Banks and FIs will be able to easily ingest and automatically assess multiple frameworks, linking directly to their CRM solution or feeding other in situ decisioning systems with high value inputs.
Unlocking opportunities for Financing and Support
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Tailored abatement plans for business clients
The platform contains a base set of actions that can guide SMEs to make commercially viable operational changes. The platform automatically guides SMEs to consider the most relevant actions that align to their emissions profile. Additional actions (for example actions that are sector specific) can be easily configured.
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Link clients to relevant products
Link customers directly to relevant financial products that support any identified action.
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Direct integrations with CRMs and internal systems
Using a powerful Events API, the platoform linkes to Customer Relationship Management (CRM) solutions like Microsoft Dynamics 365 or Salesforce notifying your Relationship Managers or Digital Services when an SME has performed an action that may require customer engagement.
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Partner with institutional customers to enhance supply chain visibility
Banks and FIs can also work directly with their institutional customers to deploy the FourTwoThree platform to their SME supply chains [link to “for Supply Chains”]
Schedule an initial conversation to discuss how FourTwoThree can accelerate your journey to real impact.