Sustainability Stocktake (SDGs & ESG): Why Fintech Is Critical for Speed and Impact
Key Highlights:
1. Finance at the Core
- Emphasis on finance as the foundation for innovation, complementing technology.
- Four decades of expertise in education, finance, investment management, and consulting inform a data-driven approach.
2. Sustainable Development Goals (SDGs)
- Historical evolution: Transition from Millennium Development Goals to SDGs in 2015, encompassing global priorities for poverty, hunger, education, health, and gender equality.
- Current status: Progress on SDGs is severely off track, with the global average score at 65%—far from the 2030 target of 100%.
3. Challenges and Opportunities
- Poverty and Hunger: High food insecurity and extreme poverty persist, with 590 million in poverty and 733 million facing hunger.
- Health and Education: Aging workforces and healthcare shortages highlight the need for global workforce mobility. Education deficiencies hinder human capital development.
- Gender Equality: Critical to achieving global progress; disparities in wages, job opportunities, and systemic gender bias remain.
4. ESG and Data Gaps:
- Challenges in measuring and integrating Environmental, Social, and Governance (ESG) metrics due to undefined indicators.
- The critical role of FinTech in improving data quality, transparency, and monitoring.
5. Big Data and Machine Learning Applications:
- Use in ESG integration, impact investing, health systems, insurance modeling, and even sports analytics.
- Potential for addressing systemic risks and improving investment strategies with advanced technologies.
Strategic Initiatives:
1. Improving Data Accessibility and Usability:
- Strengthen data collection for poverty, hunger, and education metrics.
- Develop FinTech solutions for better integration of ESG data and decision-making.
2. Promoting Gender Equality:
- Advocate for policies addressing systemic inequality in education, employment, and pay.
- Collaborate with global leaders to implement actionable strategies for equity.
3. Fostering Sustainable Development through FinTech:
- Innovate financial models that align with SDGs, leveraging big data for actionable insights.
- Use AI and ML to address healthcare gaps, carbon emissions, and climate risks.
4. Focus on Practical Applications:
- Implement stewardship dashboards for ESG compliance across investment portfolios.
- Develop sustainable insurance models leveraging advanced analytics for global applicability.
Conclusion:
Achieving SDGs requires an integrated approach prioritising people, finance, and technology. FinTech, big data, and machine learning are indispensable tools for addressing systemic challenges, but human-centric strategies must remain at the core. Progress is possible through collaboration, innovative policies, and continuous improvement in data and technology integration.
Speaker:
- Dr. Amlan Roy, Partner LCP, Research Associate LSE (FMG & SRC), Author “Demographics Unravelled”, LSE & LCP