With the rising importance of ESG in financial services, FinTech Global has revealed the 100 must know companies in its new Global ESGFinTech100.
This annual list recognises the 100 most innovative businesses that are offering solutions to address challenges or opportunities faced by financial institutions in the areas of climate risk, sustainability, social responsibility and governance.
The aim is to highlight the tech companies every financial institution must know about when considering and developing their ESG assessment and performance improvement strategies.
Companies were chosen by a panel of industry experts and analysts who reviewed a study of over 500 ESG tech companies undertaken by FinTech Global, a data and research firm.
The winners were selected for their use of technology to solve a significant industry problem, or their impact on ESG imperatives and/or sustainability enhancements generated for clients.
Speaking on the report, FinTech Global director Richard Sachar said, “Banks that adopt ESG across their business model will be better positioned to engage and retain clients over the coming years. This can turn into a competitive advantage – and a source of new revenue streams.
“The ESGFinTech100 list helps senior management filter through all the solution providers in the market by highlighting the most innovative ESG tech companies in areas such as ESG Assessment & Reporting, Regulatory Change Management, ESG Intelligence & Data Analysis, Supply Chain Screening and Banking & Investment products.”
ESG in FinTech is becoming a huge opportunity. Global investment into ESG FinTech reached $1.1bn through 78 deals in 2021, according to FinTech Global’s data. This is a growth at a CAGR of 173% over the last two years. Investment is also expected to more than double in 2022, with $657m raised through 27 deals in the opening quarter of the year.
Some of the biggest investors into the sector are Plug and Play Tech Center and Crowdcube, which both supported eight companies within the first five months of 2022.
With a list of the biggest names in the industry, it is no surprise that many have hit headlines in recent months.
One of the ESGFinTech100 companies, KYND, has had a very busy year. KYND helps organisations incorporate cyber risk management as part of their ESG governance strategies.
It recently partnered with privately owned insurance broker Hylant. This strategic partnership will provide Hylant’s brokers and clients with exclusive access to KYND’s cyber suite of tools.
Another recent partnership was formed with digital risk processing platform Cytora to improve underwriting for cyber insurers. Through the partnership, insurers will have the capability to automatically embed KYND’s advanced cyber risk management technology within Cytora’s risk digitalisation platform.
KYND is not the only ESGFinTech100 company to have hit headlines. RegTech solution provider Regnology recently acquired Tax Information Reporting (TIR) software from PwC UK. Regnology connects regulators and the industry to drive financial stability and a sustainable future.
The company also recently spoke to FinTech Global discussing how the company has positioned itself to transform ESG reporting.
aixigo, another ESGFinTech100 company, recently revealed a collaboration with digital financial services provider radicant. The partnership sees radicant gain access to aixigo’s aixigo:BLOXX Wealth Management Platform to help its customers gain access to investments in line with the UN’s Sustainable Development Goals.
aixigo provides the world’s fastest API-based wealth management platform for creating individual, innovative and profitable wealth management services.
GaiaLens also recently announced that it has added CSRHub as a new partner. GaiaLens provides a data-driven, transparent, and real-time ESG analytics platform to institutional investors.
Other companies in the list are additiv, which partners with companies to help them capitalize on the possibilities of digital wealth and investment management. Another company is Sweep, which helps financial institutions measure, track, and reduce emissions across investment portfolios.
Some of the other companies to make it into the debut ESGFinTech100 list include, machine learning-powered environmental and social investor insights service Clarity AI, customers and employee climate action engagement tool Deedster, carbon accounting/management solution Persefoni, sustainability data collection company Position Green, software developer to increase revenue, reduce risk, and deliver better outcomes PureFacts and world’s first nature-backed currency Single.Earth.
A full list of the ESGFinTech100 can be found at www.ESGFinTech100.com. More detailed information about the companies is available to download for free on the website.
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