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ESG reporting, sustainability, and the fintech sector

An expanding focus: ESG investing to investing in ESG strategy

As environmental, social, and governance (ESG) policies continue to evolve, fintech company executives, considering their next ESG moves, are asking a number of important questions. Why move from less formal ESG reporting and sustainability initiatives to a formal corporate ESG strategy? What are the risks and rewards for fintechs? And is now the right time?

New ESG reporting rules for public companies

Like other industries, the fintech sector faces a changing compliance landscape. The SEC has proposed new rules for ESG reporting that will bring more structure and transparency to public company reporting and disclosures. The SEC Proposed Rule on Climate Disclosure, for example, promises to accelerate the timeline for many companies to meet specific reporting requirements. But even before this announcement, fintech companies had convincing reasons to invest in a formal ESG strategy integrated into the corporate-level business strategy.

A compelling interest for fintech companies

The fintech sector is known for environmental and social impact. Many fintechs have this focus built right into their business models—whether it’s financial inclusion, sustainable investing, or green fintech. As a result, consumers, investors, employees, and other stakeholders have developed high expectations for fintechs to take the lead on environmental and social issues—from climate change to diversity, equity, and inclusion.

With rising stakeholder demands for greater ESG performance, the fintech sector is rapidly approaching an inflection point where having an informal ESG strategy—one without formal governance and controls, materiality assessments, KPIs, and assurance—may no longer be enough to keep pace with expectations.

Risk vs. reward: Proven benefits for fintechs

Accordingly, demonstrating ESG commitment to increasingly demanding consumers, investors, and employees, among other stakeholders, has become a focus for many fintechs. And while there are risks associated with investing in a formal companywide ESG strategy, there are also proven benefits.

Detailed business case and roadmap for fintechs

To get the full story, download and read Fintech, sustainability, and ESG reporting: Is now the time for fintechs to become early movers in adopting a formal ESG strategy? The paper presents a well-documented business case, together with a high-level roadmap, for fintech companies looking to remain at the forefront of ESG strategy and reporting.

What fintechs should know before deciding whether to invest in a formal ESG strategy.

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Get in touch

To learn more about Deloitte’s ESG services for the fintech sector, contact one of our fintech ESG leaders.

Brian Jaye
Audit & Assurance Senior Manager, Audit & Assurance Fintech ESG
Deloitte & Touche LLP

Sandeep Gupta
Audit & Assurance Partner, Audit & Assurance Fintech Co-leader
Deloitte & Touche LLP

Kirby Rattenbury
Audit & Assurance Partner, Audit & Assurance Fintech Co-leader
Deloitte & Touche LLP

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