How FinTechs can contribute to the world’s sustainability goals
SFF 2022 Insights: Enlisting FinTech To Help Create a Sustainable Future — jointly produced by McKinsey & Company, Elevandi and the Monetary Authority of Singapore (MAS) — showcases how FinTechs can contribute towards a greener future.
Key insights from the report include: – The move to a net zero global economy by 2050 will require the greatest reallocation of capital since World War 2, coupled with a massive influx of financial innovation.
– Data remains crucial in supporting the innovation of FinTechs: Data collection and analysis are crucial factors in whether FinTech innovation can successfully support sustainability goals. Data is necessary to make informed decisions, evaluate market participants, and assess the success — or failures — of initiatives. Yet good data remains a scarce commodity.
– FinTechs are already playing a role in driving the sustainability agenda. “FinTechs for Good,” i.e. FinTechs that embed an ESG agenda into their core product portfolio, operations and mission, attracted $2.1bn in funding in 2021, and this trend is expected to continue. As sustainability efforts proliferate, a key challenge for all companies would be to demonstrate real impact, and selfprotect against greenwashing.
– Encouraged at least in part by increased concern for climate change, regulators around the world are taking a keen interest in sustainability claims by corporations, particularly their reporting activities.
The report draws from the environment, social, and governance (ESG) track of the Singapore FinTech Festival 2022 (SFF 2022) that took place between Nov. 2-4, 2022, and includes insights from respectable leaders present at SFF 2022.
These include Anthony Tan, cofounder and group CEO at Grab; Eric Lim, chief sustainability officer for United Overseas Bank; Helge Muenkel, chief sustainability officer for DBS Bank; Mark FitzPatrick, CEO at Prudential; Nikhil Rathi, chief executive of the UK Financial Conduct Authority; Ravi Menon, managing director of MAS; and Sonam Wangchuk, founder of Himalayan Institute of Alternatives.
Read the full reports now on the Elevandi website.