UK Launches Perseus Scheme to Automate SME Carbon Reporting

The Development Bank of Wales has unveiled a new UK pilot scheme, Perseus, which will help small and medium-sized enterprises (SMEs) automate reporting of energy consumption and greenhouse gas emissions. It is the first of its kind in the UK to tackle one of the most pressing gaps in the climate action pathway—SME involvement in decarbonisation. While being responsible for nearly 50% of the UK's business-related carbon footprint, SMEs tend to lag behind in embracing sustainability practices due mainly to having fewer resources, unawareness, and a lack of time.

Perseus strives to facilitate such companies by providing automated software enabling them to efficiently track and report carbon emissions. This becomes easier for SMEs to do relative to the demands of green finance as more financial institutions tie loan terms to environmental performance. The scheme is promoted by non-profit organization Icebreaker One and backed by some of the major financial institutions, such as NatWest, Barclays, the British Business Bank, and the Institute of Directors.

One of the unique aspects of the scheme is its emphasis on data privacy and control. SMEs can share their energy consumption data safely with carbon accounting providers and banks but only if they have given clear consent first. This will keep participants' information safe while allowing access to reliable and verifiable data for emissions reporting.

Automated carbon reporting through Perseus helps businesses comply with the sustainability reporting requirements sought by lenders and banks. This in turn helps them qualify for green loans at better rates and sooner. The scheme addresses the gap between access to finance and management of environmental data, supporting the broader net-zero ambitions of the UK.

This new paradigm holds the promise to set a precedent in green finance and regulatory convergence at the SME level. As the squeeze on decarbonisation grows and transparency takes center stage as the hallmark of sustainability strategies, Perseus provides a scalable solution to both reduce climate impact and enhance financial access. The program also serves as an example to other programs globally, particularly those in economies that have SMEs as the backbone of economic activity but have difficulty meeting climate compliance.

As pressure from the public and regulators to act on emissions responsibility intensifies, efforts like Perseus will be crucial to unlocking increased climate action. By relieving the operating burden on SMEs, the scheme addresses one of the most critical areas of tension in sustainable finance. It demonstrates how automation and digital infrastructure can enable climate targets while enhancing financial systems.

Perseus release is part of broader initiatives by UK institutions to improve their green finance strategy. With the backing of leading banks and business groups, the pilot will most likely become a norm nationwide for SME-level emissions reporting and access to sustainable finance.

Source/Credits:
Content as per report by KnowESG and Development Bank of Wales