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Despite plans to reach net zero, 53% of fintechs could be unintentionally greenwashing

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By illuminem briefings 🌎

· 2 min read


illuminem summarizes for you the essential news of the day. Read the full piece on The Fintech Times or enjoy below:  

🗞️ Driving the news: A study by Ivalua reveals that 53% of fintech firms might be unintentionally greenwashing, despite their efforts to adopt sustainable practices
This issue arises from challenges in accurately reporting Scope 3 emissions and the struggle to integrate genuine green initiatives within their operations

🔭 The context: Greenwashing, often unintentional, is prevalent in the fintech industry, with firms overstating their sustainability efforts
The difficulty lies in accurately measuring and reporting on Scope 3 emissions, with many companies relying on estimates rather than concrete data

🌍 Why it matters for the planet: Accurate reporting and genuine sustainability efforts are crucial for meaningful climate action
Misleading green claims can hinder progress in reducing environmental impacts, emphasizing the need for fintechs to substantiate their sustainability initiatives with verifiable data

⏭️ What's next: The fintech industry faces the challenge of improving their sustainability reporting and practices
This includes moving from estimated to precise data on Scope 3 emissions and collaborating with suppliers to reduce environmental impacts, thereby avoiding financial penalties and reputational damage

💬 One quote: "Estimated data can help determine climate impact and contribute to building realistic, actionable net zero plans," (Jarrod McAdoo, Director of Sustainable Procurement at Ivalua)

📈 One stat: 87% of organizations are confident they’re on track to meet net zero targets, yet many lack comprehensive plans

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