Why this program?

• Small businesses play a vital role in the EU's economy and its efforts toward a just climate transition. They make up the majority of business enterprises in the EU and are responsible for 63% of CO2 emissions.
• However, the majority of small businesses still lack the financial resources and knowledge to take effective climate action and transform their businesses.
• Financial institutions and banks do not necessarily have the climate data needed to unlock small businesses’ access to the credit they require to grow and succeed in the digital economy.

Program overview

This program bridges the data gap for small businesses, reducing costs and risks for financial institutions supporting their green transformation. The ultimate goal is to build knowledge around this transformation and channel capital into it, encouraging and increasing investments in climate mitigation and adaptation.

tilt (transforming in a low carbon transition) equips small businesses across the EU with an automated data analytics solution that provides banks and other financial institutions with the information needed to unlock access to targeted financing for small business transformation. The solution aims to enable European small businesses to get the necessary credit and know-how to transform their business and succeed in a net zero future by 2050.

The solution is a fully automated software that requires minimal data inputs from small businesses (e.g., product information, which can be sourced from company data providers or the businesses themselves). It links this company data (partially through AI) to climate data—such as climate scenarios and Life Cycle Assessment data—and generates climate indicators to provide insights into a company's emission intensity and climate risks.

Additionally, tilt includes a ‘Climate Action Questionnaire’ that collects standardized revenue and climate action information from small businesses. This questionnaire enhances the quality of the automated data, enabling financial institutions to engage with small businesses to offer tailored sustainability-focused credit products.

tilt focuses on supporting small businesses working in climate-relevant sectors, such as energy, land use, transport, and manufacturing. Originally a research project within Theia Finance Labs, tilt, with the support of Mastercard Strive, will evolve into a viable, market-ready commercial solution that can bring about a positive impact on small businesses. The solution has already been piloted with multiple financial institutions in the EU market.

About tilt

Fostering transparency and credibility, tilt's software generates the necessary small businesses climate data to enable EU banks to set up impactful climate strategies in small business lending. The ultimate aim is to channel more capital into the sustainable transformation of small businesses and thereby contribute to an effective and just transition of our economy.

Tilt is an independent venture launched and incubated by Theia Finance Labs (formerly known as 2° Investing Initiative Germany) over the past 2.5 years. As part of tilt's commercialization and scaling process, it will soon become an independent entity.

About Theia Finance Lab

Theia Finance Labs (formerly 2° Investing Initiative Germany) is a non-profit think tank developing research solutions at the interface of climate, finance, and long-term risks. Theia is exclusively active in the field of climate action and the environment.

The mission of Theia Finance Labs is to help achieve the goals of the Paris Agreement, with a specific focus on the financial sector. The team of finance, climate, economic, and risk experts, as well as data scientists, develop research, tools, and policy insights to help achieve the goals of Art. 2.1c of the Paris Agreement, the EU net zero goals, the objectives of the Green New Deal, Fit-55, and the EU Sustainable Finance Action Plan.