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Despite Plans to Reach Net Zero, 53% of Fintechs Could be Unintentionally Greenwashing

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In the last five years, the push for a green-first attitude has become extremely prevalent in the fintech sphere. However, some firms are going too far, reveals Ivalua, the cloud-based spend management software provider, and unintentionally greenwashing.

Greenwashing, the practice of exaggerating a company’s or product’s green credentials, thereby misleading consumers and hindering meaningful climate action, has become a mainstream thing that many firms wish to avoid. In 2022, a Google Cloud report revealed that 58 per cent of executives believed their companies were overstating their green initiatives. While there has been a strong effort to be rid of greenwashing, research from Ivalua has shown that 53 per cent of firms are still doing it unintentionally.

“Organisations are aware they must urgently address sustainability, and understand the cost consequences of not doing so. But this lack of confidence paints a negative picture,” comments Jarrod McAdoo, director of sustainable procurement at Ivalua. “A lack of perceived progress could fuel accusations and fears of greenwashing, so it’s important to remember that obtaining Scope 3 data is part of the natural maturation process.”

The study reveals that less than half (44 per cent) of organisations claim they are “very confident” that they can “accurately” report on Scope 3 emissions. While nearly two-thirds (61 per cent) say reporting on Scope 3 emissions feels like a ‘best-guess’ measurement.

 

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Proactively managing Scope 3 reporting

With the UK government considering the inclusion of Scope 3 emission disclosure within the Streamlined Energy and Carbon Reporting (SECR) framework, it’s imperative organisations manage Scope 3 reporting proactively. Over time, organisations must substantiate green claims with verifiable data rather than relying on best guesses.

The research also shows nearly two-thirds of organisations agree that the cost of not taking action will far outweigh the cost of implementing green initiatives. But while 87 per cent of organisations are confident they’re on track to meet net zero targets, many don’t have comprehensive, fully implemented plans in place for:

  • Adopting renewable energy (77 per cent)
  • Reducing carbon emissions (73 per cent)
  • Adopting circular economy principles (73 per cent)
  • Reducing air pollution (71 per cent)
  • Reducing water pollution (68 per cent)

McAdoo added: “Many sustainability programs are in their infancy, and organisations need to start somewhere. Estimated data can help determine climate impact and contribute to building realistic, actionable net zero plans. Over time, organisations will need to make significant progress on obtaining primary Scope 3 data and putting plans in place, or risk financial penalties as well as ruining reputations in the long run.”

 

How to build trust

“The findings demonstrate that to build trust and credibility in sustainability programmes, organisations need to find ways to best measure and gauge the impact of their Scope 3 emissions,” said Oliver Hurrey, founder and chair, Scope 3 Peer Group.

“But absolute accuracy could be hard to achieve without significant investment. Organisations shouldn’t spend time and money fixating on 100 per cent accuracy. Instead, they need to equip procurement teams and the wider business with good data and insights. This will empower procurement teams to start taking action to identify unsustainable suppliers and ensure the business is headed in a greener direction.”

 

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Biggest challenges

Working with suppliers will be critical in achieving net zero. The research found that over half (55 per cent) of organisations agree that green initiatives to reach net zero goals that don’t involve suppliers are a waste of time. Ineffective supplier collaboration (26 per cent) was also among the top challenges organisations must overcome, with other challenges including:

  • Other objectives being prioritised, such as cost and risk (27 per cent)
  • Supplier resistance to reduce emissions (26 per cent)
  • Supplier inability to assess emissions (25 per cent)
  • Poor visibility into sub-tier suppliers (22 per cent)
  • Incomplete, absent or unreliable data on sustainability (22 per cent)

“Nearly two-thirds of organisations agree that an inability to measure supplier emissions accurately makes it hard to turn words into action”, concluded McAdoo.

“There is a clear need to adopt a smarter approach to procurement. Organisations need granular visibility into their supply chains to ensure they can measure the environmental impact of suppliers, but also collaborate with suppliers to develop improvement plans. Only with this transparency can organisations showcase meaningful sustainability progress and avoid accusations of greenwashing.”

 

Source: TheFintechTimes

The post Despite Plans to Reach Net Zero, 53% of Fintechs Could be Unintentionally Greenwashing appeared first on Hipther Alerts.

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Europe Tax Advisory Market Valuation Poised to Soar to USD 28.50 Billion By 2032 | Astute Analytica

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Brazil to Tighten Regulation on Foreign Crypto Exchanges

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Brazil’s Receita Federal Increases Scrutiny on Foreign Cryptocurrency Exchanges

Brazil’s tax authority, Receita Federal, plans to intensify its oversight of foreign cryptocurrency exchanges operating within the country. This move aims to enhance regulation and transparency amid the rising use of digital assets in Latin America’s largest economy.

New Reporting Requirements for International Platforms
Recent reports indicate that Receita Federal will soon issue an order requiring international cryptocurrency platforms, including Binance and Coinbase, to provide detailed operational data and information on their partnerships with local service providers.

Government’s Regulatory Focus
Andrea Chaves, Deputy Secretary of Inspection at the Federal Revenue Service, emphasized the importance of this measure. “It’s crucial for us to understand how they operate here and ensure there’s no illegality,” she stated. The government aims to ensure compliance with tax laws and confirm that services provided to Brazilian customers are fully legal.

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Wagner Lima, a risk management coordinator at Receita Federal, underscored the need to review collaborations between foreign exchanges and local service providers. This review ensures compliance with a 2019 regulation that mandates information sharing.

Rise in Crypto Asset Declarations
This decision comes in response to a significant increase in crypto asset declarations by Brazilians. From January to July 2023, Brazilians declared 133.6 billion reais ($24.6 billion) in crypto assets, marking a 36.6% increase from the previous year. Notably, 14.5 billion reais were declared through foreign exchanges, representing a 51.2% growth.

Upcoming Order Details
The forthcoming order will require exchanges to disclose their operational methods and customer service practices in Brazil. However, it will exclude customer-specific data and transactional information to comply with current Brazilian laws.

Future Regulatory Framework
Brazilian authorities are also working on developing a clear framework for digital currencies and their legal status, expected to be introduced by mid-2024. This framework aims to organize both local and foreign exchanges operating within Brazil, ensuring their compliance with local laws and regulatory requirements.

Source: cryptotimes.io

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The post Brazil to Tighten Regulation on Foreign Crypto Exchanges appeared first on HIPTHER Alerts.

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Financial Institution NAB Embraces Crypto Custody Solution

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National Australia Bank Invests in Crypto Custody Firm Zodia Custody

National Australia Bank (NAB), a prominent financial institution, has taken a significant step into the cryptocurrency custody arena. Instead of creating its own digital currency, NAB Ventures has opted to invest in Zodia Custody, a London-based firm specializing in the secure storage of digital assets for institutional clients.

Strategic Shift and Industry Alignment
This investment marks a strategic shift for NAB, aligning itself with global financial leaders like Standard Chartered, Northern Trust, and SBI Holdings, who have already acknowledged the importance of safeguarding digital assets for investors. By partnering with Zodia Custody, NAB showcases a forward-thinking approach, choosing collaboration over direct competition with established players like Coinbase.

Commitment to Innovation
The decision to invest in Zodia Custody reflects NAB’s commitment to providing cutting-edge solutions to its institutional clients while leveraging the potential of the crypto market. This move positions NAB as a key ally for institutional investors seeking secure and regulated infrastructure to navigate the complexities of digital asset storage and management.

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Additional Insights
One significant aspect not highlighted in the initial report is that NAB’s engagement with a crypto custody solution underscores the growing demand from institutional investors for secure and regulated infrastructure to enter the crypto space.

Key Questions
1. How will NAB’s partnership with Zodia Custody impact its overall financial services and competitive position in the market?
2. What regulatory challenges and compliance requirements does NAB face by entering the crypto custody space?
3. How does NAB plan to address security concerns related to the storage of digital assets for its institutional clients?
4. What are the potential risks and rewards for NAB as it ventures into the crypto custody sector?

Key Challenges
NAB may encounter several challenges, including regulatory compliance issues, cybersecurity risks, market volatility of crypto assets, competition from existing players in the space, and the need to build trust among institutional clients for their crypto custody services.

Advantages
1. Access to a Growing Market: Entry into the rapidly expanding crypto market and potential new revenue streams.
2. Strengthened Partnerships: Enhanced relationships with global leaders in the crypto custody sector.
3. Diversification: Broadening service offerings to meet the evolving needs of institutional clients.

Disadvantages
1. Regulatory Scrutiny: Increased regulatory oversight and compliance costs.
2. Market Volatility: Exposure to the highly volatile nature of crypto assets.
3. Reputation Risk: Potential damage to reputation if security breaches or operational issues occur in the custody of digital assets.

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Source: smartphonemagazine.nl

The post Financial Institution NAB Embraces Crypto Custody Solution appeared first on HIPTHER Alerts.

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