Coriolis Technologies testing automated ESG scoring system with international banks and trade organisations

Banks and trade organisations plan to pilot tools for measuring company activity against EU and UN sustainability goals.

On 1st March 2022, Coriolis Technologies, a leading producer of trade and supply chain data, analytics and insight, launched a new innovative solution for measuring company ESG activity. Coriolis Technologies released the product to a non-competitive working group, including banks, insurers, and professional bodies.

Over 40 organisations are participating in the Kosmos Working Group (KWG), including Santander, Demica, International Trade and Forfaiting Association (ITFA), the institute of Export and International Trade (IoE&IT). The group aims to develop ‘for the industry by the industry’ standardised ESG scoring criteria, solutions, and methodologies, with this release being the product’s first iteration.

The automated ESG scoring system means that the KWG has access to a tool that measures country, supply chain and company activity against Sustainable Development Goals defined by the United Nations and the European Union. 

Coriolis Technologies and the KWG are now looking to build on this innovation to include broader aspects of ESG and sustainability, including more comprehensive governance and regulations, carbon emission data, and individual company information.

Dr Rebecca Harding, Coriolis Technologies Chief Executive, said:

“When we set out on the journey to create an automated ESG scoring system, our central objective was to create a collaborative and inclusive group through which we were able to address the most significant issues facing global sustainability. Today’s announcement is an essential milestone in delivering that vision, with some of the biggest firms in the market joining, testing and implementing our product that is unique to the industry. We have the first iteration of a solution that will have a tangible impact on the marketplace and the world beyond. In the coming months, we will continue expanding, developing, and growing the system to integrate more sustainability metrics and provide an overall accuracy score.

John Carroll, Head of International and Transactional Banking, Santander UK, said:

“This initiative to develop a platform which provides the industry with reliable insight into their ESG activity could be a game changer for the SME sector, where there is a real desire and focus to become more sustainable. The Kosmos Working Group participation across banks, industry associations, insurers, and intergovernmental organisations demonstrates the effort to make this a success ‘for the industry by the industry’, but most importantly with a real and practical benefit for internationally trading SMEs and as such Santander is delighted to be part of this journey to drive a sustainable economy in the UK and beyond.

Francois Terrade, Global Head of Structuring for Demica, said: 

“Coriolis has developed with the Kosmos Working Group a unique ESG scoring methodology based on wide ranging, publicly available information. At Demica, we facilitate trade by providing highly flexible platform and reporting solutions to banks, corporates and investors, and are very aware of the growing demand for easy implementation of useable ESG data in supply chain finance transactions. We have no doubt that the Coriolis scoring system would help our clients drive ESG and sustainability forward by bringing much needed transparency in the context of supply-chain finance.”

Gwynne Master, Managing Director and Head of Working Capital Solutions for Lloyds Bank Commercial Banking, said: 

We’re excited to support the development of a standardised ESG scoring methodology,  essential for the adoption and expansion of sustainability-linked solutions. A transparent and trusted ESG score for SMEs – particularly for those companies without dedicated internal resources to do this themselves – will be transformational.  Here, we have the opportunity to enable customers to gain greater understanding of their supply chains and to access funding to invest in a net-zero future.

The KWG initiative will ultimately drive the future direction of ESG standardisation and deliver solutions to some of the biggest challenges facing the trade industry. Fundamentally the Coriolis Technologies tool aims to:

  1. Offer a simple, standardised and externally verifiable ESG score;
  2. Provide transparency at the product level;
  3. Achieve a granular understanding of supply chains through the tiers by allocating component products ESG scores in that supply chain.

Kosmos enables a business to monitor and assess the impact of its activities on ESG.

Organisations interested in joining the Kosmos Working Group can register their interest at https://coriolistechnologies.com/kosmos-working-group/

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