Financed emissions: Thhidden climate risk without reliable data

For financial institutions, a significant climate risk lies in the unknown: unreliable data on emissions generated by clients and investments. These financed emissions often make up over 90% of a bank’s carbon footprint, yet they are notoriously hard to measure and even harder to manage.

Our partner msg’s recent article shows why this matters: by using trustworthy CO₂ data, banks can protect their SME loan portfolios, reduce climate-related risks, and build resilience under evolving regulations.

msg highlights several key dynamics shaping the sector right now:

• Financed emissions as a climate lever: Banks have enormous influence over decarbonisation pathways through their lending and investment decisions.
• The data gap: Collecting accurate emissions data from SMEs is especially challenging, yet crucial for assessing risk and identifying opportunities.
• Regulatory uncertainty: With recent EU debates on easing sustainability reporting requirements, the risk of losing transparency is real. But climate change doesn’t pause while policy shifts.
• The way forward: Banks that integrate trustworthy climate data into their strategy can both reduce risk and unlock new opportunities in the green transition.

msg also points to solutions that can make a difference, including scalable platforms like Deedster’s Financed Emissions solution for SMEs, designed to give banks the clarity they need.

👉 Read the full article from msg

At Deedster, we couldn’t agree more with msg’s call for action. And here’s the good news: while the challenge is complex, the solutions don’t have to be. Our Financed Emissions Platform for banks and their SME clients is designed to make emissions data collection scalable, reliable, and surprisingly straightforward.

So yes, financed emissions might sound like a heavy topic (and it is). But with the right data in hand, banks can not only reduce risk, they can spot new opportunities, future-proof their portfolios, and even gain a competitive edge. And that’s something worth getting excited about.

👉 Read more about Deedster’s solution

Finally a big thank you to Sebastian Bader and Lilli Maurice from msg for putting the spotlight on this urgent topic. It’s encouraging to see industry leaders pushing for action that not only protects financial stability but also drives the transition forward.