Your bank asks about climate targets. Here is why, and what to answer.

Banks now have to assess climate risk in corporate lending in a structured way. Next time you borrow, renew or refinance, expect questions about emissions, targets and plans.

Why banks are asking now

The European Banking Authority (EBA) has issued guidelines on how banks manage ESG risk. They apply from 11 January 2026, or 11 January 2027 for small and non-complex banks. Finanstilsynet, the Norwegian regulator, expects Norwegian banks to follow them.

The idea: climate risk is credit risk. The bank must judge how climate change and the transition could affect your ability to repay, and collect customer-level data where it can.

Banks also calculate their financed emissions: the emissions of the companies they lend to. Without your numbers they use industry averages, which can be well off for your business.

What banks typically ask

It varies by bank. The EBA list of data points for large companies still shows the direction. For smaller firms, the bank decides what it needs and fills gaps with estimates.

  • Scope 1 and 2 greenhouse gas emissions in tonnes of CO2 equivalent, sometimes scope 3
  • Energy use, and how dependent operations are on fossil fuels
  • Whether you have emission targets, with a base year, target year and actions
  • Where key sites are, and their exposure to floods, landslides or extreme weather
  • How new rules, customer demands or pricier emissions could hit the numbers
  • Whether you have a transition plan, and who owns it

When the questions come

It happens in the credit process: new loans, renewals, refinancing and ongoing monitoring. SpareBank 1 SMN states that ESG risk and emissions are material criteria when it grants, renews and follows up credit.

How deep the bank digs depends on loan size. DNB requires ESG risk to be addressed above NOK 8 million and uses a dedicated tool above NOK 50 million. If the risk is rated high, it wants an action plan. Nobody is exempt, but the bigger the loan, the longer the list.

Green loans and terms

Several banks offer green loans for investments that cut emissions or energy use, like building upgrades or clean transport. The criteria apply to the project, and normal credit assessment still applies.

Some banks say green loans usually come with better terms. That is not a promise, and nobody can promise a lower rate for having a climate target. What you control is whether the bank has to guess.

The VSME report: one answer for everyone who asks

EFRAG's voluntary standard for SMEs, VSME, was built to answer requests from banks and large customers. Norway's Ministry of Finance recommends it, and in 2025 the European Commission recommended that financial institutions keep their requests within it.

On 3 July 2026 the Commission adopted its successor, the Voluntary Standard (VS), as a delegated act. It changes little in practice. Finance Norway sits on the group behind the Norwegian VSME guidance.

Two caveats. Scope 1 and 2 are in the basic module, but climate targets sit in the comprehensive one, so a bank may want more than the basics. And the recommendation is not binding, so banks may keep their own forms. The numbers still carry over.

How to prepare

Do this before you need the loan. Refinancing rarely comes with spare time.

  • Work out last year's scope 1 and 2 from fuel and electricity use. Most suppliers have few sources.
  • Set a target with a base year, target year and number, and list the actions to get there.
  • Give each action an owner and a deadline, so the plan survives follow-up questions.
  • Write down your main climate risks: location, energy, customer demands and regulation.
  • Keep it in one document, ideally in VSME format (or VS, the Commission's version), and update it yearly.

How Vyve helps

You upload what you have: HSE policy, procedures, nonconformities, annual report. Vyve builds a gap analysis, targets with KPIs, an action plan with owners and deadlines, and traceable documentation.

From the same data, Vyve produces the VSME report, the format banks and customers are encouraged to ask for. The action plan lives in the platform, so next time the bank asks, you update instead of starting over.

Vyve does not set your loan terms. Your bank does. But it gets real answers, with targets and plans that fit together.

Frequently asked questions

Do we need climate targets to get a business loan?

No, there is no legal requirement. But the bank must assess climate risk, and without your numbers it will estimate. What that means for your case is up to the bank.

Which emissions will the bank ask about?

Usually direct emissions from your operations (scope 1) and from purchased electricity and heat (scope 2), in tonnes of CO2 equivalent. Some also ask about scope 3, your value chain.

Will a green loan get us a lower interest rate?

Possibly, but not automatically. Green loans are for investments that meet the bank's criteria, and normal credit assessment applies. Ask for the criteria before you plan the investment.

Can we answer the bank with a VS or VSME report?

Often, yes, for most of it. The standard was designed for this, and the EU recommends that banks stay within it. Some banks use their own forms, but the numbers carry over.

What is the difference between VSME and VS?

VSME is EFRAG's voluntary standard from 2024. VS is the Commission's version, adopted as a delegated act on 3 July 2026. The content is largely the same.

Want to see how it's done?

Book a demo and we'll walk through it on your own documents.

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Sources

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