The Financial Conduct Authority (FCA) has extended, to December 06, 2021, the application deadline for Green Fintech Challenge 2021. FCA had earlier launched the Green Fintech Challenge 2021 to support development and live market testing of new products and services that will aid the transition to a net zero economy. FCA has also released the list of winners of the Sustainability TechSprint which took place in October 2021. The TechSprint focused on building technological solutions to overcome challenges faced by regulators in monitoring environmental, social, and governance (ESG) data and disclosures.
Ten mixed-disciplined teams comprising 120 active participants worked to develop solutions to four use cases. These use cases are related to verifying accuracy and completeness of disclosures, generating insights from different data sources to determine regulatory intervention, tracking and verifying companies’ claims regarding net zero targets, and identifying data points to design a sustainable investment label. The winning solutions include the following:
- Decentralized Carbon Offset (DeCO). The solution aims to track how companies are moving toward net zero targets by increasing transparency around companies’ carbon offsetting programs. It does so by verifying companies’ reports on their carbon footprint and offsetting using independent data from satellite imagery, drones, and IoT devices.
- Carbon attribute to digital payments. One of the winning teams proposed a mandatory carbon attribute to digital payments that carry the highest carbon intensity. The aim is to standardize carbon reporting and bring transparency around the consumption of carbon in the economy. This would incorporate spending data to measure carbon emissions, assigning carbon factors to key areas of activity. The tool would then aggregate and profile the carbon emissions captured.
- Impact investing. Another team developed a tool to help calculate an Impact Score that would determine if a fund is eligible for an "Impact Investing Badge." To calculate the Impact Score, the tool would take into account the change in ESG Score of the investee companies, the extent to which the companies utilize their voting rights, and the length of an investment.
- Sustainable Development Goal (SGD) Tracker. Another winning team built an “SDG Tracker” aligned with the United Nations' Sustainable Development Goals to generate insights from multiple structured and unstructured data sources, such as news sources, to help determine any areas for regulatory intervention. This sought to provide a more holistic focus on both environmental and social elements of ESG.
- Notification on Green Fintech Challenge
- Notification on Sustainability TechSprint
- Overview of TechSprint
Keywords: Europe, UK, Banking, Securities, Green Fintech Challenge, Sustainability TechSprint, ESG, Deadline Extension, Reporting, Disclosures, Sustainable Finance, Regtech, Fintech, Net Zero Economy, FCA
Previous ArticleDNB Publishes Several Reporting Updates for Banks
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.
The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.