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More and more people are concerned about their impact on the environment. Increasing demands on companies to act responsibly will influence consumers’ decisions to support businesses. Now is an opportune time for companies to reflect on how their practices affect climate change – environmental considerations are now a requirement in all industries – including fintech.
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With the current surge in interest in environmental, social and governance (ESG) investing, many companies are making serious efforts to adopt net zero commitments and develop new solutions to combat climate change. There is also growing concern about “greenwashing,” in which companies make false claims about environmental practices. Regulators such as the Australian Competition and Consumer Commission (ACCC) have become more critical and wary of businesses that fail to deliver on their promises and provide misleading information. ASICS (Australian Securities and Investments Commission) even published its Greenwashing penalty for the first time, That points to more enforcement action.
If done right, sustainable practices can offer your company unique opportunities for growth, innovation, and investment—plus, they can set an example for others—while strengthening their brand reputation. FinTech companies can address the need for ESG and sustainable development practices in a number of ways. One of the key opportunities lies in the power to connect and automate processes through technologies such as digital online payments – but there are many other factors to consider.
Research gaps in societal issues that the financial sector can help address, how your capital investments can be used to raise awareness of climate change, or ways in which the industry can adopt more transparent financial and economic reporting.
Reducing the overall emissions associated with your business is a surefire way to show your customers that you truly care about the environment and are taking action to improve the planet. It’s not just about setting emissions reduction targets, it’s about being able to provide customers and investors with evidence that you’re taking action to meet this commitment, such as publishing quarterly reports showing your current emissions rate. Another step you can take to carefully consider ESG factors is to create a roadmap that includes donations, actions or interactions with environmental organizations that interest you.
Given REDcycle crashes, advocates hold manufacturers and retailers accountable for the vast amounts of plastic produced.In an era where greenwashing and recycling are more common than ever, as Every Australian uses around 130kg of plastic per year (Less than 12% of plastic ends up being recycled), businesses need to get their hands dirty and start making real, impactful commitments. For example, a unique partnership approach can really put the purpose at the heart of impacting climate change. WLTH Partners ocean negotiation High impact cleanup in the Whitsunday Islands, our first cruise intercepted a total of 630kg of debris over a total area of 11,500m22 beach and coastline.We also recently launched a VISA debit card Jedd Made from upcycled and intercepted ocean plastic, with absolutely zero virgin plastic – a first for Australia. As our business focuses on raising awareness of and protecting Australian waters and coastlines from pollution, it makes sense for us to partner with like-minded organisations.
For fintech companies looking to start their environmental journey, it can be very beneficial to investigate the environmental areas you wish to focus on and use this as an indicator of which businesses you consider partnering with. Taking action with a credible organization that shares similar values to your own is a great way to show customers, investors and other businesses that you are taking ESG seriously.
In terms of payment methods, fintech can introduce new features, such as surveillance systems that enable customers to track Where They spend money to help set ESG goals. Examples of features might include graphs that track electricity bill payments and turn them into estimated carbon footprints, or allow users to set where they spend their money and align it with environmental goals – such as fast-spending limits – for fashion companies.
A passion for the environment is vital to the fintech industry and will reflect well in your business practice.In order to be a successful fintech company that considers ESG factors, you need truly Caring about climate change, not following trends to retain or attract new customers. This betrays consumer trust and confidence and can hinder meaningful action. Make up your mind and change climate change through education and behavior change—starting with practices within organizations and consumers.
