Emma Kisby, Cogo CEO, comments: “SMEs contribute to 13% of global carbon emissions, and consume 50% of commercial and industrial energy*, so they have the potential to have significant climate impact. However, we know from our work with SMEs that many of them face challenges when taking climate action. Most don’t have a background in sustainability, so they’re unsure where to start.”

Limited time and budget, as well as lack of knowledge around climate change and measuring their carbon footprint, are all cited as reasons why SMEs show resistance to prioritising climate action. Despite resistance, SMEs are under increasing pressure to measure and report on their carbon emissions. While there aren’t any regulations affecting the majority of SMEs directly, regulatory requirements for larger corporations increasingly include reporting on Scope 3 emissions. This covers reporting the footprint of purchased goods and services, which is often from SME suppliers.

Kisby adds: “Carbon Literacy and reporting is not just a nice to have, it is fundamental to the continued financial viability of many SMEs.”

The Carbon Literacy training is a day’s worth of climate learning and action, providing the knowledge, motivation and skills for staff and businesses to take meaningful climate action. SMEs will be awarded a Bronze, Silver, Gold or Platinum accreditation on completing the course and implementing any business changes.

Dave Coleman, Managing Director at The Carbon Literacy Project, adds: “Carbon Literacy is not just a desirable skill – it’s a necessity for every business, particularly SMEs navigating barriers to climate action. Achieving Carbon Literate Organisation accreditation demonstrates organisational commitment, embedding Carbon Literacy into the fabric of an organisation’s culture and operations while providing a tangible ‘badge’ of achievement. We are delighted Cogo is recognising the significance of this accreditation by incorporating it into its Carbon Manager tool, and we are confident that our partnership will help empower SMEs to deliver decisive climate action and secure their future in the low-carbon economy.”

The post Cogo and Carbon Literacy Project Join Forces to Help SMEs Become Carbon Literate appeared first on FF News | Fintech Finance.

Every day, sustainability professionals in finance spend countless hours manually researching sustainability performance and risks, processing unstructured data into relevant insights, and writing reports instead of doing what first attracted them to the field. Auquan’s Sustainability Agent changes this by autonomously completing entire workflows — from company screening and monitoring to generating framework-aligned reports and near real-time alerts — empowering teams to focus on driving sustainable value creation and enhancing stakeholder engagement.

“Sustainability teams face two critical challenges: accessing and processing reliable data on private companies quickly enough to act and staying ahead of evolving ESG regulations and investor requirements. Auquan bridges these gaps with AI,” said the head of sustainability at a top 25 global private markets firm. “Auquan’s Sustainability Agent turns what was days of manual work into insights and reports that arrive when we need them, enabling various teams to quickly assess risks, engage proactively with portfolio companies, and keep limited partners updated.”

Designed with deep finance domain expertise built in, Auquan’s Sustainability Agent processes information on more than 550,000 private and public companies, with new private company coverage added on demand within one hour. This unmatched coverage continuously draws from more than 2 million data sources originating in over 65 languages, including:

• Corporate filings and disclosures
• Regulatory documents
• Legal filings
• News and media coverage
• NGO reports and research
• Industry analyses and reports
• Web content

Auquan’s Sustainability Agent automatically aligns issues and insights with major sustainability frameworks including:

• Sustainable Finance Disclosure Regulation (SFDR)
• Corporate Sustainability Reporting Directive (CSRD)
• Sustainability Accounting Standards Board (SASB)
• United Nations Global Compact (UNGC)
• United Nations Sustainable Development Goals (SDGs)
• Modern slavery acts (UK, Australia, German Supply Chain Act)

“At Auquan, our mission is to liberate financial professionals from soul-sapping manual tasks and bring meaning back to their work,” said Chandini Jain, CEO of Auquan. “With our Sustainability Agent, we’re empowering teams to escape the endless cycle of manual data gathering and report writing so they can focus on the initiatives that reduce risk, improve stakeholder engagement, and create lasting impact.”

Auquan’s Sustainability Agent builds on the company’s proven track record of helping teams transform complex, knowledge-intensive workflows. Since its launch in late 2023, the company’s agentic AI platform has been empowering professionals across private markets, asset management, and other financial sChandini Jainervices firms to focus on higher-value work in areas including:

• Deal screening and due diligence
• Portfolio monitoring and risk assessment
• Regulatory compliance and reporting
• Reputational and regulatory risk monitoring
• Impact investing and reporting

Auquan’s customers realize immediate value through turnkey solutions while supporting custom implementations for unique research and reporting requirements. Teams begin saving hours of manual work within the first days of deployment. Auquan’s Sustainability Agent is available immediately through direct purchase or via the Microsoft Azure Marketplace

The post Auquan Launches Industry’s First AI Agent for Financial Services Sustainability Teams appeared first on FF News | Fintech Finance.

With increasing regulatory demands and greenwashing scrutiny, new sustainability labels are emerging. Some of these requirements, like the UK FCA’s Sustainability Disclosure Requirements (SDR), are driven by regulators, while others, such as France’s SRI label and Germany’s FNG, are government or industry-led.

Clarity AI’s solution addresses the challenges of monitoring funds across complex metrics and frameworks -unique to each market- by providing a user-friendly platform that brings all the information into one single screen. “The goal is to reduce the amount of time fund managers spend on identifying potential investments that fall short of the standards, and understanding the cause for non-compliance, in order to decide on the best course of action,” said Henry Waind, Product Lead at Clarity AI.

Adaptive technology to keep up with market changes

Recent guidelines from the European Securities and Markets Authority (ESMA) underscore the importance of maintaining high standards for funds using ESG-related terms in their names, including an 80% minimum investment in sustainable assets. These developments highlight the critical need for tools that can quickly adapt to regulatory changes.

“Sustainability regulations and labels are proliferating, making it increasingly challenging for fund managers to keep up”, said Tom Willman, Regulatory Lead at Clarity AI. “A significant amount of resources is tied up in regulatory obligations. These could be better used to develop sustainable solutions that support end-investors’ sustainability goals, and technology is key to making this process more efficient.”

Clarity AI supports fund managers with the German FNG, UK SDR Labels, and will soon introduce additional labels, such as the French SRI label and the Belgian Towards Sustainability label. The solution also helps screen for the Paris-Aligned Benchmark (PAB) and Climate Transition Benchmark (CTB) exclusions for ESMA Naming Rules.

The post Clarity AI Launches Solution to Simplify the Complexities of Sustainable Fund Growth in Europe appeared first on FF News | Fintech Finance.

YouHodler will join forces with the Alliance and its members—including L1/L2 protocols and exchanges—to integrate carbon emissions data for all the tokens listed on its exchange, enabling customers to make informed decisions based on environmental impact. This step aligns with MiCA’s emphasis on sustainability indicators and reflects YouHodler’s dedication to environmental responsibility.

“We’re thrilled to join the MiCA Crypto Alliance and contribute to its mission of promoting sustainability, collaboration and compliance within the crypto industry,” said Ilya Volkov, CEO and co-founder of YouHodler. “This partnership and our collaboration with the Alliance’s other members ensure that we’re not just meeting MiCA standards, but also leading the entire industry in setting practical benchmarks for transparency and responsible growth.”

YouHodler has long been advocating for responsible environmental practices in crypto as part of its ESG initiatives. The company’s new sustainability comparison table, developed together with the Alliance, will further empower customers with clear, actionable data on the carbon footprint of their token portfolios.

Juan Ignacio Ibañez, General Secretary of the MiCA Crypto Alliance, expressed enthusiasm about the collaboration: “YouHodler’s membership amplifies the MiCA Crypto Alliance’s mission to drive clarity, fairness, and sustainability throughout the crypto industry. As facilitators and coordinators between CASPs and exchanges on one side, and crypto projects on another, we’re leading all parties in publishing MiCA-compliant whitepapers with our ESG data, which is the largest database currently out in the industry. We’re excited to join forces to set new benchmarks in responsible industry practices.”

A milestone in the EU’s regulatory landscape, the MiCA framework protects consumers and investors with comprehensive requirements for crypto asset providers. However, its current version still lacks uniformity in areas such as sustainability reporting. The Alliance aims to address this challenge by fostering collaboration among its members to streamline compliance, reduce costs, and maintain high industry standards.

The post YouHodler Joins MiCA Crypto Alliance to Promote Smarter, Greener Crypto Investing appeared first on FF News | Fintech Finance.

The MiCA CASP Sustainability Readiness Assessment snapshot report highlights a sustainability compliance knowledge gap amongst in-scope service providers. Whilst 75% consider themselves ‘very familiar’ with MiCA regulation, less than a third say they are ‘knowledgeable’ about MiCA’s sustainability reporting obligations.

Zumo is launching the report in Davos, Switzerland, at the unDavos Summit – a series of high-level industry panels that takes place in parallel to the World Economic Forum’s Annual Meeting – where the company is speaking at a series of roundtables on how MiCA will work in practice, attended by government representatives and policy makers.

When asked about steps taken to comply with the MiCA sustainability disclosure requirement, only 25% of respondents said they were already prepared to be compliant, while 63% said they were still exploring compliance options. More than one in ten haven’t taken any steps yet.

Unclear regulatory requirements and expectations were the most frequently cited challenge in achieving MiCA sustainability compliance, mentioned by 50% of respondents, with the same proportion highlighting the lack of ready-made industry solutions. Additionally, approaching two-fifths of respondents (38%) highlighted the resource required to address the requirements as a significant barrier, while around a third (31%) pointed to the lack of available information.

Kirsteen Harrison, Sustainability Director, Zumo, said: “One of the core themes at the World Economic Forum’s Annual Meeting this week is ‘rebuilding trust’, looking at how stakeholders can find new ways to collaborate on solutions. This resonates well with the fast-growing crypto sector, where MiCA sustainability disclosures aim to boost transparency and reporting associated with the environmental impact of our industry.”

“Our report emphasises that sustainability policy outcomes are unlikely to be achieved without further regulatory engagement, and that’s why we have come to Davos to help drive greater collaboration between the industry and Europe’s regulatory bodies and policy makers. We’ve been working extremely hard to close the knowledge gaps that exist around MiCA, as well as helping crypto companies to better understand the broader sustainability agenda of which MiCA forms one part.”

“By fostering dialogue, championing actionable steps, and providing new, accessible solutions, we are supporting the transition towards a more transparent, sustainable, and compliant crypto industry.”

Peter Kerstens, Adviser at the European Commission, who reviewed and commented on the report, added: “Sustainability of crypto-assets and in particular their validation protocols are a key policy concern. That is why MiCA contains disclosure requirements, aimed at informing consumers and investors on the relative sustainability of crypto-assets. They require sound information to make responsible decisions. CASPs should recognise this. They should not look at MiCA – be it the sustainability or other requirements – from a compliance perspective only. They should also, and preferably, look at it as an opportunity to access the EU-wide market.”

MiCA was introduced to implement uniform EU market rules for crypto-assets. As mandated in MiCA Article 66, MiCA authorised CASPs – including exchanges, brokerages, custodians and trading firms – that are active in the EU, or wish to provide their services into the EU, now need to have a compliant website disclosure in place covering the environmental impact of offered crypto-assets.

In Zumo’s survey, reputational damage (75%) was identified as the most significant risk of MiCA non-compliance, followed by financial penalties (69%) and regulatory sanctions resulting in lost customers or revenue (69%). Loss of customer trust (31%) was also highlighted as a notable concern.

Zumo is widely seen as a pioneer for its sustainability work in the digital assets sphere. The company was a member of the World Economic Forum’s Crypto Sustainability Coalition, which explored how blockchain tools can be leveraged to contribute to meaningful progress towards climate action, and recently signed the Abu Dhabi Sustainable Finance Declaration.

Zumo also provides MiCA sustainability indicator compliance measurement and reporting through its award-winning Oxygen product, introduced to help providers of crypto-asset services better align their digital asset activities with net zero principles. The feature will help CASPs more easily access MiCA-compliant sustainability metrics for their listed crypto-assets.

The post Less Than a Third of Crypto Companies Fully Understand MiCA Sustainability Reporting Obligations appeared first on FF News | Fintech Finance.

This plan not only excludes fossil fuel producers but also commits to continually reducing the total intensity of greenhouse gas (GHG) emissions produced by companies in the plan by 10% annually. So, even if the global economy uses more carbon over time, the Climate Plan will move in the opposite direction, always using less.

Building on the success of PensionBee’s approach to sustainable investing, the Climate Plan will also increase the scope of exclusionary screens based on changing customer expectations, as learnt through recent surveying. The new Climate Plan will screen out unsustainable palm oil use, weapons, gambling, alcohol, tobacco, for-profit prisons and companies embroiled in environmental controversies.

Driven by insights from PensionBee customers, the Climate Plan offers the chance for customers to align their pensions with the 1.5°C goals of the Paris Agreement, directly addressing customer demand for sustainable, impactful pension options. The new plan goes further than the EU’s 7% year-on-year minimum carbon intensity reduction for Paris-aligned Benchmarks, aiming to reduce by at least 10%.

With a strong focus on green revenues, the new plan seeks to invest in companies that will benefit from the transition to a low-carbon economy, offering pension holders a pathway to sustainable financial growth while supporting climate action.

Customer input was instrumental in the Climate Plan’s creation.

In February 2024, PensionBee invited customers with sustainable investing preferences to share their views. The results showed 62% support reducing carbon exposure in their portfolios, and 98% back adding new exclusions like unsustainable palm oil, gambling, weapons, and environmental controversies.

Clare Reilly, Chief Engagement Officer at PensionBee, said: “All our investment solutions are designed for our customers, who play a crucial role in shaping our plan range. The Climate Plan continues our growing history of customer-led product innovation. The environmental challenges we face as a planet are fast moving, as are the solutions to address them.

“We remain committed to evolving and advancing our sustainable plan range, to respond to the changing expectations of customers and to reflect the newest approaches to climate-focused pension saving.

“By directly responding to customer sentiment, we are proud to deliver a pension plan that prioritises impactful climate action and meets today’s environmental challenges head-on.”

The Climate Plan’s annual management fee is 0.75%, ensuring accessible, climate-focused pensions for all.

The post PensionBee Launches New Climate Plan to Help Customers Invest in Line With the Paris Agreement Goals appeared first on FF News | Fintech Finance.

When asked for opinions on the sustainability of specific payment providers, between 86% and 94% of respondents agreed that Ecommpay (90%) and five other named providers are sustainable, care about society and/or do good for society.

“Businesses have been increasingly prioritising their own sustainability for some time, and it is clear that this focus now extends to their partnerships,” commented Miranda McLean, Chief Marketing Officer of Ecommpay. “Payment partners are being chosen based on their sustainability and overall commitment to Equality, Sustainability and Governance. It is important that providers can demonstrate their ESG credentials to prospective clients.”

Payments Association data suggests that just 5% of payments businesses see ESG as a priority in the next 12 months, highlighting a significant gap between the priorities of payment providers and their clients.

“As part of our goal of reaching ultimate financial inclusivity, we have made significant commitment to increasing accessibility and equality for Ecommpay clients and their customers”, continued Miranda McLean. “Our payment solutions are inclusive and sustainable, and our new website has been designed with accessibility at its core. We are now calling for others in the industry to take similar action. Together we can ensure that affordable, convenient and flexible payments can be made accessible to everyone.”

Ecommpay has also committed to an ongoing inclusivity programme, Ecommpay for Good. The programme focuses on Ecommpay’s own inclusivity as well as providing businesses with critical support to improve accessibility of their own website, products and services to simultaneously benefit customers and their business. Offering mid-size and enterprise businesses the products and services to trade domestically and internationally, Ecommpay for Good goes to the heart of financial inclusivity.

The post Merchants Choose Payment Providers Based on Business Commitment to ESG appeared first on FF News | Fintech Finance.

This collaboration will integrate blockchain-powered solutions through Fils’ use of the Layer-1 blockchain, ensuring transparency, traceability, and trust in every transaction, creating a seamless way for customers to measure and offset the carbon footprint of their digital asset purchases, supporting regional institutions and fintechs in meeting sustainability goals while navigating the growing demand for digital assets, and to lead in sustainability by aligning with global ESG goals.

The importance of this initiative is also underscored by the UAE’s rapidly growing digital assets market, which is projected to generate $453 million in revenue by the end of 2024, with further growth expected to surpass $616 million by 2028.

Nameer Khan, Founder and CEO of Fils, commented:

“Our partnership with Fuze represents a milestone for both fintech and sustainability in the region. By embedding climate action directly into the digital assets ecosystem and leveraging the power of our blockchain technology, we’re providing the most comprehensive and first-of-its-kind solution that not only meets but exceeds global ESG expectations. This partnership underlines the growing importance of aligning financial innovation with environmental responsibility. Together, we are building the rails for a future where every transaction contributes to a greener planet, demonstrating how fintech can lead the charge in achieving net-zero goals.“

Mohammed Ali Yusuf (Mo Ali Yusuf), Co-Founder and CEO of Fuze, shared:
“Our partnership with Fils underscores Fuze’s commitment to innovation and responsibility. As digital assets become a mainstay for financial institutions, embedding sustainability in these transactions is essential for long-term growth and environmental stewardship. Together with Fils, we’re setting a new standard for green finance in the region.”

Strategic Impact

This partnership includes the following initiatives:

• Carbon Footprint Insights: Providing real-time data on the environmental impact of digital asset transactions, empowering customers to make informed decisions.
• Offsetting Mechanisms: Enabling customers to offset the carbon footprint of their transactions seamlessly, fostering climate-positive actions.
• Ecosystem Support: Helping banks and fintechs across the region adopt sustainable practices, aligning with global ESG (Environmental, Social, Governance) standards.

The collaboration between Fuze and Fils reflects a shared vision for responsible innovation. By integrating sustainability into digital assets, the partnership supports businesses in achieving both financial and environmental goals, paving the way for a greener economy.

The post Fuze Partners with Fils to Launch the First Digital Asset Sustainability Solution in the Region appeared first on FF News | Fintech Finance.

Developed by The Payments Association’s ESG Working Group, the report, entitled, “Sustainable Digital Payments: Measuring Carbon Emissions in the Payments Chain” illustrates that while the emissions from digital payments per transaction might be small, the industry’s scale makes a significant impact. Additionally, by understanding the environmental footprint of different payment methods, the industry can identify areas for improvement and promote greener practices.

This follows November’s COP29 event, hosted by Azerbaijan, which showed that current efforts to decrease global carbon dioxide, methane and other gases increase are all too slow and lacking impact.

The Payment Association’s Project ESG team has outlined the environmental benefits of digital payments and details a multi-faceted approach for measuring and reducing emissions in the industry, including a standardised approach to carbon emissions, industry collaboration across the value chain, the influence of regulatory development and connecting sustainability goals with commercial viability.

However, the study shows research has been slow to get off the ground, highlighting a case study from Lloyds Bank, which found it took 15 months to establish initial data points due to the complexity of the payment ecosystem. They identified challenges like the sheer volume of data points across physical and electronic payments and the inconsistency in measurements across different organisations.

As a result of the report’s findings, The Payments Association is calling for industry collaboration to develop a standardised framework for measuring carbon emissions in the payments chain. This will result in data integrity, comparability, and a reduction in the industry’s carbon footprint.

Tony Craddock, Director General of The Payments Association, said: “It’s a privilege to be part of a sector driving the conversation around carbon emissions management. We started this initiative in advance of any legal direction or international competition. We do so for the sole purpose that it will provide better payments and environmental standards for both consumers and the payments sector in the long run.

“Agreement on a standard way to measure emissions when people pay or get paid will provide a useful starting point for meaningful discussion. And it will help us decide what tools are needed to ultimately reduce carbon emissions, too. We believe this will contribute to increasing shareholder value, improving customer outcomes and reducing the environmental impact of payments.”

The report also provides resources and guidance for businesses to begin their journey towards sustainable digital payments. The Payments Association encourages all businesses in the payments industry to download the report and begin their journey towards sustainable digital payments.

For more information on the work and services of The Payments Association you can visit https://thepaymentsassociation.org/

The post The Payments Association Shapes the Future of Sustainable Digital Payments appeared first on FF News | Fintech Finance.