Sustainable Solutions: 5 FinTechs Making Green Finance a Reality in Europe

By Gloria Methri

Sustainable finance involves incorporating Environmental, Social, and Governance (ESG) factors into financial decisions. This wider concept includes green finance, which concentrates specifically on environmental issues.

Financial Technology (FinTech) companies play a crucial role in driving sustainable finance by reducing transaction costs, improving capital efficiency, and lowering information asymmetries. These innovative firms are making green finance more accessible while enhancing risk management practices and fostering a more inclusive financial ecosystem.

According to recent statistics from Global Market Estimates, the global green FinTech market is projected to grow at an impressive annual rate of 22.4% from 2024 to 2029. This surge indicates a strong commitment from the financial sector to support environment-friendly technologies and initiatives.

Here are five notable FinTech companies in Europe that are leading the charge in promoting green, sustainable finance.

• Downing

Downing is an investment management firm that focuses on making sustainable investments accessible to all. It offers a range of financial products, including renewable energy investments. Downing allows investors to participate in projects that promote clean energy and sustainability. It prioritises transparency and aims to generate both financial returns and positive environmental impact, catering to a diverse clientele.

• ekko

ekko is a FinTech company dedicated to promoting sustainable banking. It offers a digital banking solution that prioritises eco-friendly practices. ekko’s platform enables users to track their carbon footprint, providing insights into the environmental impact of their spending. The company invests a portion of its profits into sustainability projects, making it easier for users to contribute to a greener future.

• Sugi

Sugi is a green FinTech company that provides data about carbon footprints to help users make more informed investment decisions. The platform analyses carbon impact and temperature data for approximately 95% of the global listed equity market and tens of thousands of exchange-traded funds, actively managed funds, and investment trusts. The FinTech has partnered with Ecosphere+ to offer verified carbon credits generated by forest conservation projects.

• Tomorrow

German startup Tomorrow provides sustainable and transparent mobile banking services. Tomorrow Zero, a premium account, enables financing specific climate change initiatives such as biogas plants in Vietnam, clean drinking water in Uganda, and smallholder improvement in Peru. Moreover, the startup contributes to the United Nations Sustainable Development Goals (SDGs) through the green bonds issued by Förderbank Nordrhein-Westfalen, Germany.

• TreeCard

TreeCard is an eco-conscious payment card that aims to tackle deforestation. It operates on a unique model that combines traditional banking with environmental stewardship. For every purchase made using TreeCard, 80% of profits earned from merchant transaction fees go toward planting trees. This innovative approach allows users to contribute to reforestation efforts simply by using their cards, making sustainable finance effortless and impactful.