FINANCIAL SERVICES

While Zuto serves as a good example , successfully implementing ESG initiatives does not come without its challenges . Good ESG may be slightly different for each fintech – there is no silver bullet for all .

Jesper acknowledges the difficulty in keeping up with evolving standards : “ It can be challenging because some movements in the ESG space are not set in stone and can therefore be open to interpretation .

“ We come across new standards and trends each day which can be overwhelming but it ’ s about prioritising what is important to your team and the business .”

Another significant challenge is the risk of ‘ greenwashing ’. To combat this Mary highlights the importance of showcasing genuine commitment : “ Building ethical practices into day-to-day operations must start by creating policies and a company culture that aligns with your ESG objectives .

“ Committing to this was one of the reasons we decided to go for B Corp Certification back in 2021 . With this stringent , independent validation , there is no way to greenwash . You need to prove the steps you say you are taking , and continuously measure them .”

How to measure your ESG impact Finding ways to measure ESG is crucial for fintechs looking to take a serious approach to ESG .

Jesper shares emagine ’ s approach : “ It can be difficult to quantify but we look at the social elements including our engagement , the number of people who

ESG fintech is projected to attract US $ 123.7bn in investment by 2026

recommend us and consultant ratings to measure our impact .

“ If other people are understanding our impact , we know we are doing a good job . We also have sustainability-linked loans so it ’ s fairly visible to measure the success of our ESG initiatives . If we hit our goals , we save a lot of money on interest rates .”

Indeed , successfully financing and implementing the right ESG approach requires engagement with shareholders .

For Zuto , internal impact groups have been integral to its B Corp framework , and , as Mary says this has “ enabled the employee voice to drive our ESG approach and share our strategy around wellbeing , planet , inclusivity and communities ”.

She continues : “ As a Manchester-based business , this has led us to participate in various charity and community

142 October 2024