How ESG performance will influence financing access from 2026

From January 2026, sustainability will officially become a financial risk factor. The European Banking Authority (EBA) will require banks to assess environmental, social, and governance (ESG) risks in the same way they evaluate traditional financial risks such as liquidity or credit risk.

This marks a turning point in how the financial sector operates. Banks will integrate ESG criteria directly into their credit risk management systems – meaning that a company’s sustainability performance will play a decisive role in whether, and under what conditions, it receives financing.

For many organizations, this represents a wake-up call: ESG reporting is no longer just a matter of reputation or compliance – it’s a question of financial viability.
 

What This Means for Businesses

In practice, the new EBA ESG Guidelines (Download it here) mean that companies must demonstrate resilience against sustainability-related risks. Financial institutions will increasingly require transparent, verifiable data and documentation on topics such as:

• CO₂ emissions and climate impact
• Energy efficiency and resource management
• Transition plans toward more sustainable operations
• Social and governance structures that support long-term stability

If such information is incomplete or unavailable, banks are likely to classify the business as higher risk. The consequences include stricter lending terms, higher interest rates, or even denied access to financing.

While large corporations often have established ESG reporting frameworks, small and medium-sized enterprises (SMEs) may find it difficult to meet these evolving expectations. Many lack standardized processes, internal expertise, or clear starting points for ESG data collection and reporting.
 

Simplifying ESG Management and Reporting for SMEs

To support smaller companies, the Voluntary Sustainability Reporting Standard for Non-Listed Micro-, Small- and Medium-Sized Enterprises (VSME) offers a proportionate approach to sustainability reporting. It translates complex ESG requirements into a structured and practical process tailored to SMEs. The VSME framework enables organizations to:

• Identify sustainability topics that are material to their operations
• Collect relevant ESG data in a standardized format
• Prepare meaningful disclosures aligned with stakeholder and regulatory expectations

By adopting this approach, SMEs can gradually build transparency and processes that meet future regulatory and financial requirements – without major disruption to their day-to-day operations.
 

Acting is Required Before the Deadline

Although the EBA ESG Guidelines will apply from January 2026, banks are already beginning to integrate ESG risks into their credit assessments. Companies that act now will be better positioned once these evaluations become standard practice. Early preparation allows businesses to:

• Identify and address data gaps
• Establish consistent reporting routines
• Present credible ESG performance to lenders and investors

Proactive steps today can reduce administrative pressure later and help organizations demonstrate financial resilience through sustainability. The integration of ESG into risk management is not a temporary trend but a long-term shift in how creditworthiness is defined.
 

How Envoria Supports You

Envoria’s VSME software module translates the VSME framework into a digital, structured workflow that simplifies ESG reporting for SMEs. It provides organizations with an efficient way to prepare for regulatory changes and align with the EBA ESG Guidelines 2026. The solution includes:

• Guided data input and ready-to-use templates – helping teams collect ESG information systematically
• Coverage of essential and advanced reporting needs – supporting both initial and more mature ESG reporting processes
• Fully traceable, audit-proof documentation – ensuring transparency and reliability for internal and external audits

With Envoria, SMEs can establish a sound foundation for sustainability reporting, meet upcoming regulatory expectations, and strengthen their financial credibility in the eyes of lenders.