Impact Assessment Framework for SME Lending

The project is developing an innovative approach to systematically assess the environmental and social impact of SME financing. The goal is to identify potential impacts and establish a solid foundation for forward-looking lending decisions.

Key data

Description

Financial institutions typically assess sustainability in lending decisions primarily through financially material factors (e.g. risk considerations). The innovative idea is to develop a scientifically grounded and operationalizable framework that enables the systematic assessment, management, and steering of impact in SME lending (incl. impact materiality).

It seeks to identify which types of corporate financing, and which strategic business fields are most effective in actively managing and increasing impact. The concept will be applied to structure this framework and to illustrate how financing activities translate into intended sustainability outcomes. By doing so, the idea mirrors the distinction between company and investor impact in the investment context.