In today’s rapidly evolving financial landscape, the fintech industry is stepping up its efforts to make a positive impact on society and the environment.
No longer limited to charity or occasional acts of goodwill, the term “fintech for good” now encapsulates a broad commitment to Environmental, Social, and Governance (ESG) goals.
Fintech companies are increasingly aligning their operations with ethical values and making strides towards addressing key challenges such as financial inclusion, data privacy, and sustainability.
Here, we spotlight five fintech companies that are leading the way in making corporate social responsibility their top priority.
1. Epos Now
Epos Now has demonstrated its commitment to CSR through a variety of sustainability initiatives. The company aims to achieve carbon neutrality and ultimately become carbon-negative.
(Image Source: Epos Now)
One of its key partnerships is with GiftTrees. Through this initiative, merchants using Epos Now terminals receive a 10-point contribution for every GiftTree token purchased by their customers. These tokens help offset monthly Epos Now costs and support tree-planting efforts to combat climate change.
Additionally, the company promotes eco-friendly practices within its operations, such as reducing waste and using renewable energy. These efforts reflect Epos Now’s dedication to not only improving its environmental impact but also contributing to social causes.
2. Avana Companies
Avana Companies is at the forefront of driving both social and environmental change within the fintech space. Avana Companies is dedicated to integrating social impact into its business model, aligning its goals with the United Nations’ Sustainable Development Goals (SDGs).
The company’s key CSR initiatives include $1 billion in loans to minority entrepreneurs.
Moreover, the company has given $350 million in renewable energy loans. Avana’s lending to underserved industries, such as hospitality, commercial real estate, and renewable energy, supports clean energy and financial inclusion. Additionally, Avana’s staff has volunteered over 1,500 hours, contributing to equality, sustainable communities, and well-being.
As per CEO Sundip Patel, the challenges of measuring social impact and getting an entire company to align with these goals, especially when profit has historically been the primary motivator. However, Avana Companies is committed to taking a step-by-step approach to meeting SDGs, with a particular focus on financial inclusion.
3. Square Inc.
Square, Inc. is a financial services and mobile payment company founded by Jack Dorsey and Jim McKelvey. It is best known for its innovative point-of-sale solutions, which allow individuals and small businesses to accept card payments.
Square’s broader CSR actions include empowering economically disadvantaged groups by providing them with free or subsidised access to sophisticated business tools. This dual approach fosters both ecological sustainability and social equity, aiming to create a more inclusive economic landscape. Moreover, Square regularly publishes updates on its progress towards its goal of net-zero carbon emissions.
4. Stripe
Stripe is a financial technology company that builds economic infrastructure for the internet. The company is actively engaged in CSR efforts through its various programs.
Stripe Climate is a pioneering initiative that integrates environmental responsibility directly into Stripe’s payment platform. This program allows and encourages businesses to dedicate a portion of their proceeds to fund carbon reduction technologies. Stripe itself matches this commitment by investing millions in environmental innovations, particularly in carbon capture and storage technologies.
(Image Source: Stripe)
The aim is to decrease the carbon footprint of digital operations and promote new technologies that can lead to a sustainable future.
Stripe’s dedication to climate issues is also evident in its funding strategies, where it supports early-stage companies developing sustainable technologies. Companies that focus on Ewallet app development follow the same.
5. Adyen
Adyen focuses on sustainability within its financial services by offering green finance products that incentivise merchants to adopt eco-friendly practices. These products are designed to facilitate investments in renewable energy and energy efficiency enhancements.
Adyen’s commitment to CSR also manifests in its operational strategies, where it aims to minimise its own environmental impact through sustainable office practices and reduce indirect emissions from its entire value chain.
Additionally, Adyen engages with global partners to enhance the sustainability of the payment industry, aiming to lead by example in the financial sector.
Corporate Social Responsibility: The Future of Fintech?
There’s no doubt that other fintech businesses will follow suit when it comes to introducing CSR to their sustainable growth strategies.
As the world moves towards a 2050 net zero, each and every business in every industry sector must make strides to give back to the environment.
While these five fintech giants have made a start, there is still a long way to go.
