In order to attain the SDGs (Sustainable Development Goals) set by governments worldwide, green finance is shifting both public and private financial sectors towards sustainability. Traditional financial institutions are creating a new range of financial products and services with a focus on making a decent rate of returns while fostering environmental positive outcomes and managing ESG (Environmental Social and Corporate Governance) risks.
In the intersection between Sustainability and FinTech, we like to focus on Climate FinTech. In simple terms, Climate Fintech in the use of financial technologies to improve our climate. Within the Climate FinTech space we have identified 4 key areas of priorities: Carbon Offsetting, ESG Reporting, Climate Risk Analysis, and Banking and Payments.
The story of BNP Paribas & Plug and Play
By partnering with Doconomy, BNP Paribas Bank Polska aim to offer 3.3 million client’s digital tools for a sustainable lifestyle.
BNP launched the first checking account that donated 1% of its revenue to climate nonprofits. They teamed up with Doconomy to enable its customers to track and measure the carbon impact of their purchases. The bank launched 1% for the Planet debit card, which uses an API to track the carbon emission of each transaction. The API is connected with Doconomy that provides an independent climate calculation to help consumers understand their impact and reduce their footprint as it connects each transaction to its impact on the planet.
“ESG is our top priority and every time we search for innovations, we search for sustainable innovations that can contribute to the SDG on top of improving the customer experience or efficiency of BNP Paribas operations”
Arnaud Auger, BNP Paribas
“Reorienting private capital to more sustainable investments requires a comprehensive rethinking of how our financial system works.”
Julia Taeschner, Group Sustainability Officer, Director Investor Relations at Aareal Bank AG