Platform set up to evaluate business’ ESG compliance
The introduction of a reliable tool for assessing the degree of compliance with ESG (Environmental, Social, Governance) criteria that companies must meet to ensure their sustainable development, will be introduced by banking and financial institutions.
The Cyprus Credit Bureau, in collaboration with Cyprus Banks Association and ICAP CRIF, will use the Interbank Business Evaluation Project via Synesgy, a global digital platform, enabling Cypriot companies to assess ESG compliance. This initiative aims to foster an ESG ecosystem, enhancing transparency and sustainability in Cyprus.
Sustainable development has been set as a business objective encouraging companies to embrace ESG. Regulatory mandates and benchmarks have been introduced—and are continually being developed—for businesses. Currently, these ESG requirements primarily affect capital markets and the financial sector, but are set to directly impact all businesses in the future.
Artemis Credit Bureau, the Cyprus Credit Bureau, in collaboration with the Cyprus Banks Association and banks that belong to it, as well as ICAP CRIF A.E., a member of the international CRIF S.p.A. Group, worked closely in the last year to establish this important infrastructure project in the field of ESG.
Through the project, an international, reliable tool for evaluating the degree of compliance of companies with ESG criteria that companies must meet to ensure their sustainable development is being established in the Cyprus economy.
The global digital platform for the collection and assessment of ESG data, Synesgy, is the tool of the Interbank project and it will enable every company, regardless of size and sector, to assess its degree of sustainability and to obtain a certificate with its degree of ESG compliance valid for one year.
The ESG certificate can be published on the company’s website and used to strengthen its relations with its customers and partners. At the same time, based on the assessment results, the company is provided with a personalized Action Plan with recommendations on how the company can improve its ESG performance.
A company is asked to fill in a questionnaire that evaluates its actions regarding the ESG criteria. The questionnaire is adapted to the size of the company and the sector in which it operates, as well as to the regulatory requirements of the country where the company operates.
The company’s ESG data evaluation methodology is based on current international and European regulations and standards and is constantly adapted torelevant changes. The Synesgy questionnaire is certified by the CRIF Rating Agency, recognised at the European level.
It is also noted that the platform allows easy and direct access for businesses. The business is invited to answer questions regarding its practices and back the answers through documentation that will be uploaded to the platform, and which will also be shared with the bank.
It is also mentioned that completing the questionnaire is a process that requires due diligence and responsibility on the part of the organization because the accuracy of the answers is of the utmost importance.
Although the platform is very user-friendly, for clarifications and assistance regarding the questionnaire the authorised representative of the business can contact the ICAP CRIF Synesgy Customer Service, it is added.
By completing the questionnaire, the company automatically receives the results of its evaluation while at the same time, the results are communicated, through Artemis Credit Bureau, to the company’s partner banking institution to evaluate the company’s use of ESG standards. Companies that are customers of more than one bank will be asked to fill in a single questionnaire that will be used by all banks.
Yiannis Tomasides, General Manager of Artemis Credit Bureau said “We are proud because today the Cyprus Credit Bureau is implementing another infrastructure project for the Cypriot economy. Through this important project, it becomes possible to evaluate the performance of Cypriot companies by the companies themselves and the banks in matters related to their ESG. Today, the foundations are laid for the creation of an ESG ecosystem in Cyprus.”