How fintech can still help the planet

Despite ESG losing favour, sustainability schemes offer real world change, and payment tech can play a role too

I first wrote about sustainability in payments back in 2023.

As I return to the topic, it’s worth exploring the recent backlash against ESG, and how voluntary schemes such as 1% for the Planet and B Corp are growing in importance.

Fintech by default makes business more sustainable, think of neobanks that don’t need branches, or taking payments on an iPhone rather than a card machine.

Meanwhile Stripe offers users the ability to divert a percentage of sales to Stripe Climate as an easy way for users to do a little something to help the planet.

ESG soared, then flopped

2021 was the year of peak ESG. That year, a record $649 billion flowed into ESG-related investment funds. Larry Fink, the CEO of Blackrock, an Asset Manager, declared that “climate risk is investment risk”, and regulators made ESG disclosures a priority.

But the tide soon turned. 2022 saw net inflows of just $157.3 billion, down 75% from the prior year. 2023 and 2024 saw net outflows, particularly in the US. ESG wasn’t the p…