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Fewer reporting obligations, same risk obligations - AI-based ESG scoring as an innovative bridge

Customer Magazin NEWS 03/2025

An ESG scoring service such as msg.CST from msg for banking offers banks an efficient and scalable solution for meeting regulatory requirements and making sustainable credit decisions with AI-supported data collection, standardised assessments and a pay-per-use model.
18.12.25
604 views
4 minutes reading time
Artificial Intelligence, Regulatory Law, Sustainable Finance
Fewer reporting obligations, same risk obligations - AI-based ESG scoring as an innovative bridge

ESG scoring is gaining relevance When granting loans, banks not only have to assess a company’s financial creditworthiness, but increasingly also analyse sustainability risks and opportunities. Supervisory authorities and investors demand transparency about the ESG exposure of the loan portfolio, for example to identify climate risks or calculate green asset ratios.

The European Commission is planning to weaken individual regulatory requirements for the non-financial reporting of small and medium-sized enterprises (SMEs) with the so-called „Listing Act Omnibus „1 in 2025 in order to reduce the bureaucratic burden on smaller companies. For many SMEs, this means that they will not have to submit comprehensive sustainability reports in accordance with CSRD2 in the coming years.

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