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Sustainable Digital Finance as a driving force for ‘ESG agenda’.


‘Technology and sustainability individually and independently led to the emergence of new economic and financial paradigms. However, when considering the intersection of these two driving forces, a new paradigm is also emerging, so-called sustainable digital finance. A critical issue for ESG agenda…

Sustainable digital finance is the result of the intersection between technology and sustainability. Sustainable digital finance identifies a financial paradigm implementing a “technological ecosystem”, to pursue sustainability, to be intended as “a strong, sustainable, balanced and inclusive growth, by directly and indirectly supporting the targets set in the Sustainable Development Goals”.

Therefore, sustainable digital finance is also strictly connected to “aspirations captured in the business community”, including not only sustainability but also “corporate social responsibility”, “multicapital or shared value” and the ESG agenda.

Similar to digital finance, sustainable digital finance relies on a technological ecosystem, where disruptive technologies including mobile payments platforms, crowd-funding, peer-to-peer lending, finance-related big data, artificial intelligence, machine learning, blockchain, digital tokens, and the Internet of Things operate with a high degree of complementarity.

Sustainable digital finance could definitely leverage technologies and provide a significant contribution toward environmental sustainability, in addition to other sustainable goals.’

From the Book: Sustainable Finance in Europe: Corporate Governance, Financial Stability and Financial Markets

Editors: Danny Busch, Guido Ferrarini and Seraina Grünewald

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