Top Green Finance Companies — Sustainable Fintech Firms In The World

As of 2024 and most certainly beyond, climate change is a global concern, while green finance and sustainable fintech are major trends. Why is it so?

Reuters’ study shows that global green finance rose over 100-fold in the period 2012-2022, from $5.2 billion to as much as $540.6 billion. 93.1% of the financing comes from green bonds, meaning that companies increasingly attract investment with the prospect of paying returns once their green initiatives in fintech will do the work. 

In this post, you’ll explore the concept of financial sustainability in great detail. Besides, you’ll discover reasons to strive for sustainability in modern fintech business, followed by a review of the top 10 best sustainable fintech companies. You’ll also examine prospects for green fintech in the future. 

What Does Sustainability in Finance Mean?

Sustainable finance is the integration of Environmental, Social, and Governance (ESG) criteria, attributed to sustainability, in financial services. 

You can see how concepts of finance and sustainability overlap in the image below:

As you can observe, the primary difference between sustainable finance and ESG lies in the scope of application, as ESG, combined with finance services, falls within sustainable finance. 

At first glance, it may seem that finances and the environment aren’t related. However, environmental issues, like climate change and resource management, are concerns for tech firms as well. For example, crypto mining alone consumes more energy than entire countries, such as Argentina. There’s also e-waste, which implies used hardware that is hard to recycle. Also, the fintech industry is highly electricity-reliant. 

To improve their situation, organizations are increasingly aiming to become sustainable finance companies and embrace green finance. This way, they can contribute to the future of fintech. At the same time:

Green finance is the financial activity that supports environmentally sustainable development, focusing on investments that generate positive environmental outcomes.

Green finance approaches include funding for projects such as renewable energy, energy efficiency, water management, pollution control, and sustainable agriculture. Green finance aims to reduce carbon emissions and environmental impact while promoting economic growth. It’s worth mentioning that green finance is a part of sustainable finance.

Now, when the questions “What is sustainable finance?” and “What is green finance?” are well-elaborated on, let’s delve into the reasons to go green fintech. 

You can discover more about green finance and green fintech in the corresponding blog post by DashDevs. 

Why Making Steps Towards Sustainability Is Vital For Modern Fintech Businesses

If the mere fact that adopting green fintech practices is beneficial for the Earth is not enough, here are some additional reasons to go sustainable finance. 

1. Sustainability has gone mainstream, so you should not fall behind. Well, it seems like nowadays, it’s just impossible to stay indifferent to the upcoming climate catastrophe. More and more people become conscious consumers and start living in a more eco-friendly way. They want their green finance company to align with their values. Whether or no, if the top fintech companies want to stay the course, they have to cover the demand. Dealroom.co listed 300 climate fintech startups only, showing the magnitude of the niche. Still, there are even more players in the market.
2. Eco-conscious companies outperform their non-sustainable competitors. A study shows that about 67% of clients expect their challenger bank to move towards eco-friendliness. Half of them are ready to change the bank if they don’t see any progress. Since the choice of service providers is huge, customers can choose socially responsible businesses.
3. Compliance with supervisory expectations. Fintech companies must adopt financially sustainable policies due to regulations and oversight by authorities. For instance, all European banks are required to integrate ESG (environmental, social, and governance) analytics to combat greenwashing and ensure genuine ecological responsibility.
4. Attracting and retaining talent. Today’s workforce, especially millennials and Gen Z, prioritizes working for companies that align with their values. A commitment to sustainability can make fintech firms more attractive to top talent who want to make a positive impact through their work. A survey by Deloitte indicates that 55% of candidates belonging to these generations research a company’s environmental impact before applying for a job.
5. Long-term cost savings and efficiency. Sustainable practices often lead to long-term cost savings. For example, energy-efficient technologies and reducing waste can lower operational costs. Additionally, sustainable fintech solutions can drive innovation, leading to more efficient and resilient business models that are better equipped to handle future challenges.

10 Best Green Fintech Companies And Their Sustainable Financial Solutions

Now, let’s have a good look at examples of sustainable finance companies in the market. This way, it will become more apparent what actions can already be taken: 

#1 Aspiration

Aspiration, a challenger bank in the US, shows how environmental companies can make a significant positive impact. Its core values include funding green projects to save the environment and avoiding investments in oil corporations that harm the climate. Each time a customer makes a purchase, Aspiration rounds up the amount and directs these funds to plant a tree. With this initiative, the company aims to plant 100 million trees and remove millions of pounds of carbon dioxide from the atmosphere.

The Aspiration app was created with the assistance of DashDevs, a fintech development partner. We contributed largely to this project coming to life, that’s why we share its detailed description for your review. Among the developments we handled for Downing were the creation of a secure authentication process, the implementation of a loyalty program, the development and integration of analytical instruments, and Voice over IP (VoIP) telephony. 

You may explore the Aspiration case study on the corresponding DashDevs’ success story page.

#2 Downing

Downing is a UK-based sustainable investment managing platform focused on renewable energy, infrastructure, property, and healthcare. With over 25,000 investors on board and more than £1.9 billion in assets under management, Downing helps businesses worldwide get financing for their green finance initiatives. As one of the trusted sustainable finance companies, Downing also applies green fintech principles to their operations by reducing paper and plastic usage, as well as by optimizing energy efficiency. 

Downing was also created in collaboration with DashDevs. Our team rebuild outdated and inefficient infrastructure, addressed scalability issues, and helped achieve compliance with security standards in the industry. 

You may additionally learn about the Downing case study on the corresponding DashDevs’ success story page.

#3 TreeCard

TreeCard is a fintech startup targeting European clients. TreeCard offers to earn points for ethical purchases, like ones made with trusted brands or for taking public transport. The company focuses on reducing plastic use and promoting reforestation. TreeCard makes its cards from recycled plastic bottles and sustainably sourced cherry wood, and directs 80% of its profits to reforestation projects. TreeCard emphasizes the significant impact of collective small efforts, addressing issues such as palm oil industry damage in Indonesia, malnutrition in Senegal, and watershed restoration in Ethiopia.

You may be interested in exploring how to start a fintech company in another blog post by DashDevs. 

#4 Starling Bank

According to the independent service quality survey, Starling Bank is one of the examples of fintech companies that lead the US market. Their eagerness to go green and choose more planet-friendly options attracts so many customers to their services. The bank is branchless, paperless, and operating on renewable energy. It was also the first in the country to launch debit cards made from recycled plastic. Additionally, together with other top fintech companies, Starling joined the Tech Zero taskforce to help cut carbon emissions. Along with that, they plant trees to reduce and prevent deforestation. 

#5 Triodos Bank

Triodos Bank is another UK-based green fintech that promotes sustainability and resource efficiency. Recognizing the increasing public concern about environmental impact, Triodos only finances green economy enterprises. Moreover, the research conducted by Triodos shows that ethical options also belong to their investors’ key demands. transparently publishes information about all its business partners. The transparency the bank demonstrates allows stakeholders to see how their money contributes to combating climate change.

Looking for advice on green fintech? Apply for high tech consulting services at DashDevs, and let our experts assist you. 

#6 Stripe

Stripe is an online payment processing company. It launched Stripe Climate to let all ambitious businesses do their part in making the planet more climate-neutral, which boosts fintech sustainability and financial inclusion. With Stripe Climate, companies can contribute a fraction of their revenue to sustainability technologies. Except for that, Stripe regularly donates to carbon removal initiatives, aiming to mitigate climate change by lowering the rise in global temperature.

You may be interested to learn more about Stripe and its competitors in another blog post by DashDevs. 

#7 N26

N26, a digital bank based in Germany, is committed to sustainability and environmental impact. The bank offers a green account option where customers can contribute to environmental projects directly through their banking activities. N26 partners with various organizations to support reforestation, ocean clean-up, and renewable energy initiatives. Additionally, N26 uses eco-friendly materials for its cards and strives to minimize its carbon footprint through digital-only operations.

#8 Tred

Tred, the green business account, launched the UK’s first green debit card, made from recycled plastic. Aside from providing regular banking functions, Treds offers users to track their carbon footprints via an app. The app calculates carbon dioxide emissions for each purchase, helping users understand and reduce their environmental impact. Tred uses profits from transactions to plant trees, capturing carbon and promoting sustainability.

#9 Clim8

Clim8 is another of the sustainable finance companies that invest in renewables and a sustainable future. The company delivers their client regular investment services while providing an extra opportunity to contribute to protecting the environment. Investments are directed towards clean water, energy, technology, sustainable food, smart mobility, and the circular economy, in accordance with the UN Paris Climate Agreement goals. Clients can start investing from £25.

#10 Trine

Trine, a Swedish fintech company, allows customers to earn a profit while making a social and environmental impact by investing in solar energy. With over 2.5 million people gaining access to electricity through investments from 12,000 Trine investors, the company offers a platform where users can set up an account, choose a loan, and invest a minimum of £25. Once the loan is fully funded and solar products are distributed, investors receive their investment back with interest. Trine aims to help clients triple their investment returns.

Sustainable finance companies worldwide are many. They help both businesses and individuals worldwide contribute in a convenient way, as well as donate funds or provide some other support themselves. What more is there to say, organizations in finance and fintech definitely should also do their bit towards achieving sustainable future. 

Green Fintech For Green Future: Is The Aim Achievable?

The future is largely dependent on current tendencies in the industry. You can discover future trends in green fintech for the year 2024 and beyond in the infographic below:

Basically, the fintech industry is heading towards establishing a more transparent way to invest in a green future. Besides, we can forecast the rise of green fintech-centered startups and neobanks, as well as increased utilization of AI. 

The demand for eco-conscious products is growing, and fintech can lead the way. With continued effort, achieving a green future in finance is possible. It can be advised for all companies from fintech and finance to start contributing in the shortest possible time, as soon being a green fintech may become a norm.

Looking for sustainable app development services? Don’t hesitate to reach out to DashDevs. Let’s discuss the opportunities for your business. 

Final Take

The rise of green fintech represents a promising shift towards sustainability in the financial industry. With sustainable finance companies like Aspiration, Downing, TreeCard, and Clim8 leading the charge, innovative solutions are making it easier for businesses and consumers to adopt eco-friendly practices. For businesses, this is both a challenge and an opportunity to use.

Getting started with financial sustainability requires substantial experience and expertise in fintech and energy management. Should you need assistance, consider DashDevs as your trusted partner. With more than 13 years of experience in the development market, and over 500 projects completed, we are ready, willing, and able to deliver according to your business objectives and goals. 

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