In the New 20s, sustainability is a huge facet of everyday life. However, while many of us are concerned about our daily waste and carbon, what about money? Sustainable finance is a niche that many startups are looking into - let’s see what that entails.
What is Sustainable Finance?
In brief, sustainable finance is greener investing. Those involved in sustainable financing will invest in eco-friendly initiatives, for example, and greener practices. For instance, firms involved in sustainable finance may offer investors and traders opportunities to ‘give something back’.
To a broad extent, this side of financing may primarily offer green alternatives to standard practice. Those traders and investors looking to put money into carbon-neutral brands, for example, could choose a sustainable finance broker.
Otherwise, you may find that some banking services give you greater clarity about where your money goes. While some global banks are becoming more transparent, openly sustainable financiers tell you precisely what to expect.
Crucially, the difference lies in the fact that this may be considered ‘investing with a conscience’. How do you know where your money is going, otherwise? As everyday trading and investing become more commonplace, startups are working to break down barriers.
Sustainable Startups in Financing and Banking
Therefore, let’s consider a handful of ventures working in green finance. What does this look like in the here and now, and where might it be going?
TreeCard is an intriguing innovation that is as green as you can imagine. This service provides a debit card that is effectively made from wood - removing the need for plastic. However, the venture is also transferring a significant fraction of fees to actively growing trees and forests. For users, this means checking balances - and any trees they have helped grow in the process.
Finance startup Miris is an excellent example of green funding available over in Europe. This Norwegian innovator provides users with fund clarity regarding green initiatives and where money eventually travels. Miris’ focus primarily revolves around sustainable energy - a vast, ongoing concern. To link financing with green energy is an impressive and unexpected maneuver.
Clarity AI, meanwhile, blends modern technology with - as their name states - clarity on sustainability. Their platform combines machine learning and AI to help provide users with clear answers on funds and their green focus. With sustainability often challenging to track through portfolio management manually, this is a bold move.
Ultimately, as you can see, ventures in green finance are keen to give more power to the people. Knowing where your money goes, and the difference it makes is crucial in the modern age.
The Future’s Green
Given that even established banks and financiers are opening their eyes to sustainability, this trend will grow further. However, it is the ventures and trailblazers we need to watch!
Keen to know more about brands making big waves in sustainable financing and investments? Take advantage of real-time numbers on green finance startups via Fundz.
SOURCES USED
https://extension.harvard.edu/blog/what-is-sustainable-finance-and-why-is-it-important/
https://www.finextra.com/blogposting/20197/the-5-green-fintechs-you-need-to-watch-in-2021
https://codeandpepper.com/10-top-green-fintech-companies/
Topic: Finance Startups
