PROJECT ESG
How fintechs can supercharge sustainability and gain consumer trust
Karine Martinez, head of sales, Edenred Payment Solutions
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t’s not easy being green, especially when environmental, social and governance (ESG) obligations are mounting amid an uncertain economic picture. But businesses can no longer ignore the voices of consumers worldwide who are demanding immediate and impactful climate actions – and this is where fintechs have a vital role to play. The United Nations has declared 2021-2030 the Decade of Action, and is demanding that businesses take meaningful action towards a more sustainable future. In addition, investor pressure is building, with 82% of investors
Winter 2023
saying ESG needs to be embedded in corporate strategy, according to PwC data. Any business that thinks it can get away with ‘greenwashing’ is in for a rude awakening. As the global push towards sustainability gathers force, the demand for fintech-driven ESG solutions is definitely out there – and growing. According to KPMG, the market size for such solutions could surge from $21 billion in 2022 to more than $160 billion in the next five years. But if this potential is to be realised, fintechs will need to pay close attention
to how new regulations and reporting standards will impact their business. Global pressure to stamp out greenwashing is building It’s clear to see that government and regulatory demands for more ESG actions are intensifying worldwide. During 2022, several fines and remedial actions were imposed on companies found to have given misleading or incorrect ESG information, a prime example being the US Securities and Exchange Commission, which fined two financial institutions for misstating and omitting information in ESG disclosures.
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