- Opening bank accounts
- AML consulting
- Business support
- Сompanies for sale
According to the August 2022 Global Climate Report of the National Centers for Environmental Information (NCEI) under the National Oceanic and Atmospheric Administration, the surface temperature during the mentioned month was recorded as the sixth (6th) highest for August for the past one hundred and forty years (143 years). The measured temperature was 0.90 degree Celsius (0.9 C), or 1.63 degrees Fahrenheit (1.62 F), higher than the average of 15.6 degrees Celsius (or 60.1 degrees Fahrenheit) from 1901 – 2000.
August of 2022 can be described as warmer than the average condition around most European countries, North America, Southern Asia, and Southeastern Asia. The climate is also the same for some parts of Northern Africa and South America, along with the Arabian Peninsula and northern Oceania.
As concluded, 2022 is becoming a year of warmth, with a 10.5 per cent chance of ranking among the top five warmest years and highly probable to be in the top ten rankings.
These are all because of climate change, and it is not reversible. It is affecting our planet with crucial risks to human beings and natural ecosystems.
Based on the Financial Technology report of CBInsights for quarter two (Q2) of 2022, the investments in financial technology dropped by thirty-three per cent (33 %) quarter-over-quarter (or QoQ), amounting to approximately 20.4 billion United States dollars (USD 20.4 billion). It is the lowest recorded level since quarter 4 (Q4) of 2020.
Following the same trajectory, more than one hundred million United States dollars (USD 100 million) in fundraising rounds have been figured for the total transactions (about four per cent, 4 %) and investments (about forty-seven per cent, 47 %), smaller than what it was during the same time in 2021.
During the Quarter II of 2022, here are some of the highlights of the financial technology industry:
More information on the Q2 – 2022 Financial Technology Report can be found on this link.
Given that there are a number of industries that widely affect the world’s climate negatively, more institutions are also developing new strategies for doing their business to help the environment. One of those industries is financial technology. Here is where the climate fintech comes in.
Climate fintech is where real-world climate, finance, and virtual technology intersect. According to https://www.climatefintech.cn/, technological innovations, applications, and tools are the essential key for the financial correspondents and channel between all the partners and shareholders looking out for global decarbonisation, meaning a low-carbon economy.
Now, as climate change brings about the economic and political danger to the world’s economic stand, several financial services companies are going an extra mile to help ease the climate change. Some of the note-worthy directives are the following:
Some of the financial technology intuitions that started the big move are listed below:
In one of the countries in Oceania, Australia, it was recorded that general insurers pay out approximately 3.89 United States dollars to 300,000 claims as victims of bushfires, floods, and storms during the summer of 2019 – 2020. Indeed, climate change is now evident in the irregular weather conditions that increase insurance costs. Further, the Australian Climate Council published a research study concluding that eight years from now, in 2030, one out of twenty-five (1:25) houses and infrastructures will not qualify for insurance.
The new Prime Minister of Australia, Anthony Albanese, was put into the seat because he promised that there would be a significant change in the country’s climate policy when elected. Now, climate change is becoming a crucial subject in most geographies since there have been droughts, floods, and bushfires in several years.
Singapore, The Garden City, is now collaborating with the World Bank and International Emissions Trading Association (IETA) to lead and present the Climate Warehouse. The objective is to share information and lessen the multi-counting of carbon credits by gathering and connecting the different carbon credit registries in the world.
In addition, the Cloud Computing Services, Google Cloud, and the Monetary Authority of Singapore (or MAS) have introduced a program to help and assist the financial in Point Carbon Zero Programme. Their target is to grant access to the most comprehensive and detailed data relating to climate, enabling a more effective and efficient funding usage for sustainable investments.
On the other hand, the United States of America (USA) has introduced a climate bill. This bill passed by the United States Senate is under the Inflation Reduction Act of 2022 which aims to reduce the costs of prescription drugs, health care, and energy. It is probably a crucial and remarkable highlight for the financial sector. To back this claim up, as much as 375 billion United States dollars (USD 375 billion) is allotted to fund the various action plans targeting to decrease the level of carbon emission in the USA. The major strategy they intended to use is by investing in renewable energy resources and the privilege of having tax discounts for customers so they can acquire EVs.
These show that the government, specifically, the legislative body is substantially making efforts in increasing the funding for the clean technology industry.
Now that climate risk assessments are being measured and are included in companies’ financial statements, it is deemed necessary to have capital-efficient solutions which target the removal of those risks off the balance sheets.
Arbol, a technological insurance company that focuses on producing parametric protection solutions due to unforeseen weather damages, is helping the corporate sector in managing risks from temperature, rainfall, and other disastrous weather events. They are the first ever to offer this kind of products and services the sole purpose is to manage climate risks. They have what they call “Arbol’s Captive + Parametric solution” which specifically turns risks from calamities into auto insurance through their parametric architecture.
With regards to major companies, the expectation is for them to have notable benefits that will segregate climate hazards/exposures based on the parametric measures.
Furthermore, customers have recently levelled up their demands by requiring green business strategies from companies. For the financial services sectors like banks, this issue has been their medium to gain more customers wherein their main marketing strategy is to invest in projects for sustainable development. During the previous year, in 2021, there is approximately 100 billions United States dollar-worth of investments in renewable energy resources, which record-breaking measure of funding to assist the shifting of the industry into an economy with lower carbon.
Simultaneously, the government are making efforts in passing bills to help the climate by requiring more green initiatives from the financial sector, however, this may take a lot more time than expected to be passed into law. The key here is to give privileges to the institutions that will invest in green projects, instead.
The technological status of renewable energy is indeed improving, having renewable resources become more affordable than fossil fuels. This is a great opportunity to take and the public is a huge force to bulldoze this up, for a more environmental-friendly financial technology industry.