BANKING

1 . Increasing efficiency - as well as providing cost efficiencies , the use of fintech tools , such as smart contracts , can automate services ( for example , approving and paying out climate insurance claims ) without the need for human intervention .

2 . Improving risk management - access to , and analysis of , data over a wide range of green and sustainable finance-related areas ( for example climate data and emissions tracking ) makes it easier for financial institutions and others to identify , assess , manage and disclose climate and other environmental risks .

3 . Enhancing transparency and market integrity - availability of monitoring and verification data from satellites , drones , smartphones and other sources makes the verification and publication of impact data ( like factory emissions , de- or re-forestation ) more robust , cheaper and accessible .

4 . Targeting investors - digital platforms and data analytics enable issuers , fund managers and others to target retail or institutional investors with an appetite for green and sustainable finance investment .

5 . Changing consumer behaviour - apps that can track customer spending behaviour and link this with emissions data can estimate carbon footprints and ‘ nudge ’ consumers towards more climate-positive or other socially desirable spending and behaviours .

Source : ‘ Green and Sustainable Finance ’ by Simon Thompson

102 January 2023