Now encapsulating a focus on societal impact and the environment, the term ‘fintech for good’ has evolved from its initial meaning of charity. But it doesn’t stop there. This July, we are on the hunt to find out how the fintech industry is doing ‘good’ for local communities and the world, revealing current and future plans to make change.
While many believe that the damage being done to our planet will only cause serious issues for our children’s children, or beyond, the truth is that rising temperatures are already a cause for concern – with climate change directly contributing to heatwaves, wildfires, floods, tropical storms, and hurricanes in recent years.
The World Health Organisation predicts that between 2030 and 2050, climate change could cause approximately 250,000 additional deaths per year. Yet while this presents a very real challenge to hundreds of thousands of lives today, the progress currently being made feels negligible at best.
However, the fintech industry is not one that has stood still in this regard. In fact, fintech innovations are taking place across the globe, with addressing the climate crisis an utmost priority. But where in the world is making the most progress? To find out, we explore the different initiatives and innovations worldwide leading the net-zero race.
Singapore, Denmark and the UK
Julia Wilkinson, sustainable finance and impact investing manager at Lebec Consulting
Julia Wilkinson, sustainable finance and impact investing manager at Lebec Consulting, explains: “Countries that remain focused on digital inclusion and committed to net zero work hard to create supportive ecosystems.
“Fintech solutions that enable carbon data management, pricing, financing and trading of net zero assets are leading.
“Singapore and Denmark, for example, are using smart payment systems for carbon tracking and investments in sustainable projects. Fintechs in these regions also play critical roles in developing and deploying financial products that support energy-efficient practices and renewable energy adoption, aligning financial strategies with long-term sustainability goals.”
Martin Hartley, group CCO of emagine, also believes Singapore is emerging as a frontrunner when it comes to sustainable fintech efforts: “Singapore is investing heavily in fintech to support green finance initiatives, including sustainable lending, carbon accounting, and ESG data analytics,” Hartley explains. “Meanwhile, Sweden has a strong focus on sustainable finance and is using fintech innovations to drive green investments and support the transition to a low-carbon economy.
“The UK has been a frontrunner in promoting sustainable finance through fintech solutions, such as green bonds and sustainable investment platforms.”
Collaborative efforts will be ‘crucial’
Jon Cohen, CEO of climate solutions platform provider Climate Vault, says: “Countries like the United Kingdom, Germany, Singapore, and the United States are leading the charge in leveraging fintech innovations to enhance their sustainability efforts. These nations are establishing robust regulatory frameworks and incentives that encourage fintechs to develop and deploy green finance solutions.
Jon Cohen, CEO of Climate Vault
“In the UK, for instance, fintechs are pioneering green investment platforms that make it easier for individuals and businesses to invest in sustainable projects. Meanwhile, Singapore has emerged as a hub for green fintech, with strong government support and an ecosystem that fosters innovation in sustainable finance.
“I believe that collaborative efforts such as this between companies and governments are going to be crucial to achieving global sustainability targets as societal and health consequences will be a dominant outcome of climate change.
“Climate-vulnerable cities, states, and even whole countries will be subjected to the most extreme impacts of our warming planet. These will strain not only the budgets of governments, but also the livelihoods of families around the globe, although the effects will not be evenly distributed.
“In the colder areas of the world, for example, deaths due to extreme cold are projected to decrease. In the United States, the city of Chicago is a great example, where the mortality risk is projected to decline by about 35-40 deaths per 100,000 people by 2100, according to research from Climate Vault Co-Founder Michael Greenstone and the Climate Impact Lab. Over time, however, fewer cold days (resulting in fewer cold-related deaths) will be counterbalanced by more hot days (resulting in more heat-related deaths) in US cities like Miami, New Orleans, and Phoenix.”
Big tech leading the way
Maria Patschke, CEO of financial software solution provider SAP Fioneer, said: “Countries benefitting the most from fintechs in the race to net zero include those with advanced regulations and access to capital. The European Union leads with its stringent ESG regulations, attracting fintechs to focus on this market.
Maria Patschke, CEO of SAP Fioneer
“Other nations, such as Canada, India, Taiwan, Japan, and Australia, are following suit with similar regulatory frameworks. The USA, with its abundant funding opportunities and home to many of the world’s largest financial institutions, also fosters sustainable innovation through fintech.
“Despite the proliferation of ESG-focused startups, understanding their business models and unique value propositions remains challenging. There are fintechs around sustainable finance, carbon accounting, and carbon offsetting, all of them contributing to net zero in a different way.
“Ultimately, major tech companies are poised to dominate by integrating comprehensive solutions for calculating carbon emissions across operations and value chains. They are likely to achieve this by acquiring fintechs and leveraging their superior budgets and market presence to outpace smaller competitors.”
A global outlook
Ari Widlansky, worldwide director for revenue growth and strategic alliances at Esker, commented: “Countries leveraging fintech for net zero goals are succeeding due to supportive regulatory environments, strong financial sectors and proactive government initiatives. Several nations stand out in this race:
Ari Widlansky, worldwide director for revenue growth and strategic alliances at Esker
“The UK’s Green Finance Strategy encourages sustainable investment through regulatory support and FCA-provided innovation sandboxes, fostering fintech solutions for carbon tracking and green investments.
“Germany’s Renewable Energy Sources Act (EEG) incentivizes renewable energy projects, spurring fintech innovations in clean energy financing and carbon credit trading.
“Singapore’s Green Finance Action Plan, led by the Monetary Authority of Singapore, promotes sustainable finance through grants and regulatory frameworks, enabling fintech startups to develop solutions for ESG reporting and sustainable supply chains.
“In the US, state-level initiatives like California’s Climate Investments program are encouraging green fintech innovations, particularly in areas of carbon offsetting and climate risk assessment.
“France is also emerging as a notable player, with companies like Esker leading in AI-driven solutions for sustainability reporting and green procurement, supported by the country’s push for digital transformation in financial processes.
“These nations are creating environments conducive to fintech innovations that drive progress toward net zero emissions, positioning themselves as leaders in global sustainability efforts.”
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