S3-ECheMo is an innovative approach to scoring the environmental friendliness of consumer loan requests (based on the intended activity) and integrating the obtained information with credit risk assessments in pricing interest rates on loans. Similar to a credit check, S3-ECheMo utilises a comprehensive asset database containing a variety of assets and their associated externalities (emissions contributions or savings) based on a detailed lifecycle analysis (LCA) to prorate their culpability or contributions to 2050 Net-Zero targets as underwriters.

Particularly, S3-ECheMo enables (i) underwriters to determine in real-time how much they contribute to mitigating third party emissions by evaluating their prorated contributions, (ii) underwriters pre-empt their potential vulnerability to regional transition risks by evaluating the impairment costs based on scenario analysis, (iii) underwriters to create dynamic and sustainable financing options for consumers that can earn them renewable energy credits which can be used for offsetting shortfalls elsewhere.

S3-ECheMo is an environmental scoring software that seeks to operationalise transition risk in incentivising consumer lending institutions to begin rethinking their financing strategies and having in place extensive assessment schemes that provide them with a comprehensive overview of their full contributions (positive or negative) to 2050 Net-Zero targets. Additionally, S3-ECheMo also serves as an agency for national governments to subtly (and indirectly) prod consumers into leveraging finance for investing in sustainable projects by making consumer banks liable for associated Scope 3 emissions (through underwritten credit).