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Sustainable Living With “Tech4Good”

Hernaldo Turrillo — Tue, 26 Jul 2022 13:21:44 +0000

Global challenges like climate change, economic insecurity, deteriorating health, and many others need holistic and tech solutions. Technology For Good (or Tech4Good) is a much broader and inclusive approach that applies exponential technologies capable of addressing critical challenges in the most sustainable way. Is, then, Tech For Good the answer to making the world a better place?

Sustainable Living With “Tech4Good”

Technology has transformed the world, evolving society itself with advancements like printing, navigation, medicine, aviation, wireless, and the internet. But, with time, it became clear that it wasn’t always that these had a net positive impact, and that we need to start developing a world focused on the greater good of society.

Technology For Good (or Tech4Good) is a much broader and inclusive approach that applies exponential technologies capable of addressing critical challenges in the most sustainable way.

Tech For Good: A deeper sustainable perspective

Technology For Good is a comprehensive perspective that allows one to take a step back from techno-solutionism and hyped fads, and understand the dynamics that exist within the various elements of an ecosystem- people, culture, economics, history, and information.

Crucially, integrating all this information and developing a technology that impacts everyone in a positive manner is Tech4Good.

Sustainability with Tech For Good

Sustainable development, according to the UN World Commission on Environment and Development is “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

Sustainability can only be achieved by keeping the people (or the living beings) at the core of any development, and this very concept is the integral theme of the Tech4Good approach. Therefore, the fabric of sustainable innovation can be created only if it serves the dual purpose – the positive impact on humanity and taking the global challenges head-on.

Below are the top innovations for promoting better and sustainable living:

Green Cloud Computing Approaches and practices where computing and IT innovations have potential environmental benefits are grouped under green cloud computing.

Green Cloud computing is very efficient for users as it ensures no data loss. It enables a reduction in carbon emissions by 88% and energy consumption by 87%, while also providing ease of working for its users and increasing the efficiency of the process.

Edge Computing Edge computing is a distributed computing paradigm – an architecture that stores data locally in the nearby device on the site of its creation. This is expected to improve response times, reduce data traffic, save bandwidth, reduce energy usage, and consequently carbon emissions.

Edge computing allows retrofitting, i.e. adding new technology to pre-existing infrastructure, reducing the e-waste generated due to replacement.

IoT Sensors IoT (or Internet of Things) sensors are the hardware pieces to detect changes in the environment and collect data. These sensors are a part of an IoT ecosystem that bridge the physical world to the digital one.

IoT sensors may detect changes in temperature, pressure, PM, Co2 levels, motion etc. They share this data with the network they are connected to. This information is crucial for detecting and solving environmental problems.

IoT sensors can also be used in infrastructures to track, analyse, and optimise energy consumption. For instance, IBM has developed a low-cost IoT sensor to detect methane leaks, a global warming contributor and hazardous gas.

Artificial Intelligence

Considered one of the most revolutionary human developments, AI has immense transformative capabilities, empowering the world with some cutting-edge solutions.

From developing new drugs to tracking the human trafficking rackets, optimising energy generation and consumption, and helping people with disabilities- AI is currently bringing radical innovations to the mainstream- making our lives more sustainable than ever imagined.

It can be utilised in many ways to reduce its carbon footprint by managing and tracking its impacts on the environment. Google used DeepMind to reduce the energy consumption of its data centres, and its cooling cost by 40%. AI can be used to create green and clean energy grids, for eco-friendly agriculture, to enhance the sustainability of supply chains, and for monitoring the environment.

Blockchain

The decentralised, immutable, and transparent nature of blockchain technology is the key to harnessing innumerable applications for good. Constant innovations and humanitarian efforts with a positive environmental impact have been the salient features of blockchain that encourage newer and better models from authorised participation. Above that, it also facilitates tracking and monitoring of parameters, while ensuring informed decision-making.

The Tech For Good approach

Placing technology in the context of society, people, and culture is not as simple as downloading an app, or demonstrating a new cookstove, or building a website- those “simple” problems have already been solved.

Tech4Good challenges, on the other hand, are more complex. They are the ones that allow the world to tweak both the available tools and the understanding of their applications; to consider historical activities alongside cultural considerations for the usage of technology; to consider that solving any one particular part of a problem is a gateway to newer unanticipated problems.

The Tech4Good lens is a motivation to look beyond the small scope of the technology itself, and place it within an appropriate context.

Hernaldo Turrillo

Hernaldo Turrillo is a writer and author specialised in innovation, AI, DLT, SMEs, trading, investing and new trends in technology and business. He has been working for ztudium group since 2017. He is the editor of openbusinesscouncil.org, tradersdna.com, hedgethink.com, and writes regularly for intelligenthq.com, socialmediacouncil.eu. Hernaldo was born in Spain and finally settled in London, United Kingdom, after a few years of personal growth. Hernaldo finished his Journalism bachelor degree in the University of Seville, Spain, and began working as reporter in the newspaper, Europa Sur, writing about Politics and Society. He also worked as community manager and marketing advisor in Los Barrios, Spain. Innovation, technology, politics and economy are his main interests, with special focus on new trends and ethical projects. He enjoys finding himself getting lost in words, explaining what he understands from the world and helping others. Besides a journalist, he is also a thinker and proactive in digital transformation strategies. Knowledge and ideas have no limits.

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Sustainable Packaging: Is Your Business Supporting The Circular Economy in the Fight Against Single Use Plastics?

Hernaldo Turrillo — Tue, 31 May 2022 16:57:04 +0000

Today, sustainability is more important than ever. In fact, a recent survey showed that 61 per cent of consumers have actively reduced their use of single-use plastics. In turn, this has the ability to drive trends.

Sustainable Packaging: Is Your Business Supporting The Circular Economy in the Fight Against Single Use Plastics?

In 2020, the UK placed 4.9 million metric tonnes of plastic on the market. Out of this, 3.7 million metric tonnes became waste. In order to reduce plastic pollution, companies across the nation are now working to incorporate circular economy solutions into their business plans.

The circular economy is a sustainable model of reusing, repairing, and recycling materials as many times as possible. In comparison to a linear system, circularity allows wasted materials to have a new life or to be recycled back into new products. As a result, waste is captured and the need for raw materials is alleviated.

Here, we will explore some of the UK companies leading the way with sustainable packaging solutions. Using these examples, how can your business respond to the fight against single use plastics and align with consumer trends?

L’Oréal Paris

L’Oréal Group is leading the way for sustainable packaging within the cosmetics industry. In collaboration with Paboco, the company has created a paper bottle using sustainably sourced paper. If used en masse, this has the potential to significantly reduce plastic waste.

In addition to this, the environmental profile of 96 per cent of all new products launched by the company has improved in 2020. L’Oreal has also committed to using 100 per cent reusable, recyclable, and compostable plastic packaging by 2025.

As part of the L’Oréal for the Future campaign, the company has pledged to become sustainable by 2030. This includes the preservation of natural resources, management of water sustainability, fighting climate change, respecting biodiversity, and banning testing on animals.

Tesco

Tesco, one of the leading supermarket brands across the nation, is also making significant contributions towards sustainability. As well as ditching single-use plastic bags, the supermarket is promoting a circular economy within its Own Brand products, such as bin bags.

This has reduced plastic sold throughout the company. In fact, over 1 billion pieces of plastic have been saved since this sustainability campaign began. Also, since 2018, Tesco has removed 11,400 tonnes of hard-to-recycle materials from its Own Brand packaging.

The future looks bright for this company. It is committed to making 100 per cent of the paper and board used in its packaging sustainable by 2025. In 2021, it also pledged to remove an extra 500 million pieces of plastic from its supermarkets throughout 2022. Do you think Tesco will achieve this goal?

Waddington Europe

Waddington Europe, a leading producer of rigid plastic packaging, is committed to sustainable packaging innovation. Its Eco Blend and Eco Blend Pura ranges, as well as being fully recyclable, are made with 100 per cent post-industrial and post-consumer recycled content.

In recent months, the company has also designed an innovative strawberry punnet. This product uses raised based cushion technology that removes the need for an extra layer of protective bubble wrap and any adhesive. As a result, Waddington’s strawberry punnet requires no glue, and it can be easily recycled straight back into food-grade rPET.

LUSH Cosmetics

LUSH Cosmetics prioritises sustainability throughout the production process. In fact, 66 per cent of all products sold each year are naked and require no packaging at all, saving 4,275 tonnes of plastic throughout its stores. This includes a number of popular products, such as bath bombs and shampoo bars.

In recent years, LUSH has designed its first piece of carbon-positive packaging. The cork pots, ideal for naked shampoo bars, are reusable and biodegradable. Throughout the production process, each cork pot retains 33 times its own weight in carbon dioxide.

LUSH Cosmetics has also introduced sustainable schemes. The Bring It Back scheme allows customers to return used packaging in exchange for credit towards their next purchase. In addition to this, the Fresh Face Mask scheme gives customers a free face mask every time they recycle used packaging at one of the LUSH stores.

ASDA

Last and certainly not least, ASDA is leading the way with forward-thinking packaging solutions. Since 2007, ASDA has reduced the weight of their packaging by 27%, and the supermarket is committed to making all of its packaging fully recyclable by 2025.

ASDA has introduced a packaging-free store in Leeds. This gives customers the opportunity to refill their own reusable containers with groceries, including pasta, cereal, dog food, and laundry detergents. The scheme is set to be expanded to other locations throughout the UK.

To summarise

Sustainability is trending. Consumer behaviours have incentivised businesses to create sustainable solutions to plastic pollution. From L’Oréal’s cosmetics bottle to ASDA’s free packaging zones, companies are adapting towards a more sustainable future.

Sources

https://www.statista.com/statistics/1269387/plastic-on-market-and-plastic-waste-united-kingdom/ https://www.statista.com/topics/4918/plastic-waste-in-the-united-kingdom-uk/ – dossierContents__outerWrapper

https://www.biffa.co.uk/biffablog/2018/june/your-guide-to-closed-loop-recycling

https://www2.deloitte.com/uk/en/pages/consumer-business/articles/sustainable-consumer.html

https://www.loreal.com/en/news/group/loreal-recognized-as-a-global-environmental-leader-with-triple-a-score-given-by-the-cdp/

https://www.loreal.com/en/commitments-and-responsibilities/for-the-planet/

https://www.loreal.com/-/media/project/loreal/brand-sites/corp/master/lcorp/documents-media/publications/sbwa/sbwaprgroupe2020eng0.pdf?rev=49cbe89fb6624ae08a6c76062242dee6&hash=72977512C14B73C27C60036201A2919B

https://www.loreal.com/en/news/commitments/loreals-latest-innovation-for-more-sustainable-packaging-the-paper-bottle/

https://metro.co.uk/2021/10/25/climate-change-how-sainsburys-and-tesco-compare-15474988/

https://www.tescoplc.com/sustainability/documents/factsheets/

https://www.waddingtoneurope.com/sustainability#

https://www.sustainableplastics.com/news/sustainability-milestones-waddington-europe-include-zero-landfill-status-across-all-sites

https://weare.lush.com/lush-life/our-impact-reports/go-circular/

https://asdasupplier.com/responsibility/our-sustainability-commitments

https://inews.co.uk/news/consumer/asda-packaging-free-refill-zones-more-stores-launched-fill-containers-from-home-1054432

Hernaldo Turrillo

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Green Growth For A Carbon Neutral World By 2050

Hernaldo Turrillo — Thu, 19 May 2022 15:42:54 +0000

The chief climate indicators are worsening globally. Although the pandemic led our world to a transitional reduction in carbon dioxide emissions, it is back to (and is even surpassing) the pre-pandemic levels. Holding off drastic measures, therefore, is completely out of scope if the carbon-neutral levels are to be achieved by the year 2050.

Green Growth For A Carbon Neutral World By 2050

Carbon dioxide levels are record high (and rising). The effects of global warming can be seen everywhere around – the past decade has been the hottest ever, ice caps on the poles are the lowest, and extremes of weather – increased floods, droughts, apocalyptic fires, storms, cyclones, etc., are the new normal. Besides, the world is experiencing a sharp collapse of biodiversity, accelerated spread of the deserts, and warming up of the oceans (enhanced by chokes due to plastic waste).

According to a study, unless the world cuts its fossil fuel consumption by 6% every year until the year 2030, things are going to get worse. Instead, it is at a course of a 2% rise annually. Global efforts, such as that by the Intergovernmental Panel for Climate Change (IPCC) and the Paris agreement have limited the global warming levels to 1.50C.

Carbon Neutrality: The only potential solution for a sustainable future

Carbon neutrality is the congregation of strategies to help reduce greenhouse gas (GHG) emissions while ensuring sustainable economic and social growth for all that is simply not contingent on resource use. It is the very DNA of the Convention.

Failure to comply with the carbon neutrality principles could have devastating effects, especially for the economically disadvantaged (and other vulnerable) sections of the society – who have contributed insignificantly to global warming but stand to lose the most out of it.

“Science is clear: if we fail to meet these goals, the disruption to economies, societies, and people caused by COVID-19 will pale in comparison to what the climate crisis holds in store”, UN Secretary-General António Guterres.

Achieving carbon neutrality – efficiently and economically

Broadly speaking, the number of countries that have been pledging to adopt a sustainable model for realising the carbon-neutral goals has been on a rise. The key features of a sustainable carbon neutrality model include net-zero (or stable) energy systems that are affordable and ensure universal energy access and enable robust economic growth in the world. A dynamic, clean, and resilient energy economy is an essential component of the model.

Let’s find out how the world strategies on building carbon-neutral earth.

Building a truly global coalition for carbon neutrality Every institution, organisation, and company should focus on cutting down the global emissions to 45% by the year 2030. Technological advancements provide the necessary leverage. Economic analysis suggests that running a coal plant is more financially draining than building a new renewable plant from scratch.

Further, the International Labour Organisation confirms that even though the technology is the cause of an inevitable job loss, transitioning to cleaner energy alternatives would create 18 million ‘green’ jobs by the year 2030.

In order to balance this transition, it is essential to recognise the human cost of decarbonisation, while supporting the workers with social protection and re-skilling (and up-skilling) them appropriately.

Aligning global finance with the Paris Agreement and SDG (Sustainable Development Goals) lays down the blueprint for a better future for the world. Initiatives like

• Replacing subsidies on coal (and fossil fuel) with those for the renewable energy sources

• Shifting the tax burden from taxpayers to the polluters of the environment

• Mandating the financial risk disclosure

• Integrating carbon neutrality goals in all fiscal and economic decision-making

• Banks aligning their lending with net-zero objectives

• Asset owners and managers decarbonising their portfolios

• Securing a breakthrough in adaptation and resilience

This is especially urgent for small island (and developing) states, where climate change has been an existential threat to its inhabitants.

With adaptation denoting only 20% of the climate finance, it hinders the global efforts to ensure a reduction in disaster risk. Increasing the share, however, could yield better ROI- a smarter way to invest.

The pathway is narrow, yet achievable

Reaching net-zero emissions globally by 2050 is a critical and formidable goal. Realising this goal hinges on an unprecedented application of clean and efficient energy technologies (and innovation) – those that already exist, with respective driving policies right in place.

Nevertheless, it is impossible to scale and accelerate the transition to net neutrality without the participation and undying support from the citizens. An unwavering and singular focus from all governments to work in a coalition is the prime need of the hour.

Coordination is the key to sustaining life on Earth.

Hernaldo Turrillo

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Technology That Can Fix The Climate Mess

Hernaldo Turrillo — Fri, 13 May 2022 14:28:07 +0000

Here’s the recipe: Harness nature’s carbon-sequestering powers, combining it with the latest technological advancements, and adding a pinch of motivated political willpower. Green technology might be our last chance to realise global carbon-neutral goals and fix the climate mess… before it is too late.

Technology That Can Fix The Climate Mess

The alarming levels of global warming (and subsequent climate change) are a direct indicator of the widened gap between the reality of CO2 emission and the goals. A global climate-conscious effort is now the need of the hour and an essentially sustainable lifestyle that also facilitates the survival of our very own nature.

History has witnessed impressive human capabilities to bring significant changes- be it the discovery and use of fossil fuels (that led to the first industrial revolution), or the search for alternative sources of energy (to cater to the growing demands across the globe while the conventional sources of energy are at the brink of exhaustion).

While companies like Tesla are disrupting the transport industry with their introduction of electric cars and quad bikes, these initiatives fail to be enough given the rate at which the world is still dependent on fossil fuels to meet its global energy demands.

According to the latest IPCC reports, the average annual GHG emissions were at their highest levels during the past decade. While the growth rate of emissions has slowed, limiting global warming to the targeted 1.50C levels is unlikely, owing to a lack of immediate and deep emissions reduction across all sectors.

“It’s now or never if we want to limit global warming to 1.50C. Without immediate and deep emissions reductions across all sectors, it will be impossible”, IPCC Working Group III Co-Chair Jim Skea.

Innovative solutions and accelerated technological advancement, in sync with sincere human efforts and grit, are a way to sail humanity out of the climate mess (that the world is experiencing currently).

Green Technology to combat climate change

Some integral solutions for efficient and transparent carbon management are classified under the umbrella term – Green Technology. This strategy is gaining momentum in the wake of rising concerns to address global warming and climate change. AIoT, Big Data, and blockchain are powerful technologies that hold the promise to beat climate change.

AIoT (Artificial Intelligence of Things)

A myriad of databases and backend systems are involved to categorise and organise huge chunks of data from multiple business units. This requires the employment of an equal volume of manual labour. Integrating AIoT to this segment would enable seamless sourcing of data depicting real-time activity levels. It also provides an asset inventory from a plethora of systems.

This technology leverages the structuring, collection, and transformation capabilities, thereby facilitating accurate monitoring and measurement of the emission levels. Additionally, it reduces overall efforts for data collection and enhances data quality (and report resolution).

AIoT also helps in creating insights based on real-time data. Thus, accurate process emissions can be effectively predicted by analysing this data. This can efficiently refine the evaluation of the performance of abatement measures and reduce the overall marginal abatement costs.

Big Data

Historical and real-time big data solutions can help in identifying pressure points by locating sources of harmful emissions and their respective concentrations. The technology ensures transformative change by tapping the potentials within available data- advent of the Fourth Industrial Revolution.

Blockchain

The decentralised network of blockchain offers smart contract features that enable automate the enforcement of climate policies and regulations. In addition, it also enables the programming of incentives for businesses, individuals, and governments to comply with sustainable practices. Thus, smart contracts act as an incredible tool for mass participation in green practices globally.

Being in its nascent stage, green smart contracts have not enjoyed popularity in the past. With rapid growth over the past decade and intersection with other upcoming technologies, conscious efforts are giving it the required boost.

Tech alone can’t fix it

Technology offers sustainable solutions to manage global CO2 levels, enabling the world to meet net-zero pledges. However, technology has never been the cause of this climate mess. It is, therefore, logical not to put too much faith in it to be able to solve it entirely. Strong societal, political, and economic agendas are the driving factors for the application (and integration) of these advancements for realising the net-zero targets.

Technology is, certainly, a part of the solution. Nevertheless, it is only effective with collective human will and action.

Hernaldo Turrillo

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Earth Day: Five Easy Tips To Help Businesses Go Greener

Hernaldo Turrillo — Fri, 22 Apr 2022 13:21:09 +0000

Earth Day marks the anniversary of the birth of the modern environmental movement in 1970. It celebrates the importance of recycling in preserving our natural resources and securing the future of our planet.

Commercial waste from businesses has been a withstanding issue, with GOV statistics estimating that the UK generated 43.9 million tonnes of commercial and industrial (C&I) waste in 2018, of which 37.2 million tonnes (85%) were developed in England.

However, many businesses do want to go greener. A recent report found that over 60% of UK business owners would cut ties with suppliers that broke their environmental commitments. In addition, SME owners across the country are calling for more government funding to help businesses go green this year (87 percent), as over a third state their customers care about what their business is doing for the environment along with their own employees (24 percent).
In light of Earth Day, card payment specialists takepayments Limited have compiled a list of practical but straightforward tips to help businesses and SMEs go greener effectively.

Five eco tips for businesses this Earth Day

1. Invest in recycled paper

It’s all well and good to recycle your office paper and have separate waste bins for recyclable and non-recyclable stuff, but if. Still, if you opt to buy non-recycled paper, it’s counterproductive. Paper production necessitates an enormous quantity of energy.
Use recycled paper for offices to guarantee your company is environmentally conscious. Recycled paper uses 28 percent less energy, and you’ll be helping the UK economy as well (as recycled paper is often made in the UK).

2. Shut down tech properly overnight

Monitors and lights are easy things left on after everyone has clocked out. Making your employees shut off laptops and other equipment at the end of the day is a good way of lowering your carbon footprint. Although this may not significantly lower energy use, it will if you have a bigger office space.

3. Select green suppliers

Using a green energy supplier is a reasonably simple and environmentally friendly move your company can make. Many energy providers generate electricity from sustainable, renewable sources like solar, wind, and hydro. Some offer a combination of energy sources, others guarantee 100% renewable energy, and other stormwater prevention plan companies in houston tx, for instance, look at long-term solutions; assisting businesses with stormwater compliance, Ground Water Investigation/Remediation, Stormwater Pollution Prevention Plan, training and more.

4. Collaborate with other eco-conscious businesses

Do your research and, if possible, collaborate with other like-minded, environmentally concerned businesses. Numerous green partners range from sustainable raw materials suppliers to carbon-balanced office printers and even eco-friendly web hosting.
For smaller businesses, collaborating with other local eco-businesses in things such as giveaways on social media or using their services is a great way to communicate your efforts with your customers and help boost the local economy.

5. Invest in sustainable packaging

Encouraging recycling and reusing is critical in any industry. You could sell branded reusable items like shopping bags and coffee mugs in retail. If you own an office, make sure you have the appropriate recycling bins and encourage your employees to use the best green practices, as we do at Solve.

Even the most minor things don’t cost anything, like encouraging staff to bring their lunches in reusable containers. You could even give them branded eco lunch boxes –good marketing for your company and the environment!

Sandra Rowley at Takepayments Limited , said,

“Days like Earth Day are a reminder for all of us to keep incorporating minor changes in our business practices. People more than ever are looking to buy from businesses that incorporate the most ethical and eco-friendly friendly practices. Consumers are becoming more environmentally conscious every year, and companies need to adapt to that demand if they want to thrive long term.

Whether your organisation has the budget to invest in more long-term strategies or whether you’re an SME who wants to make small changes while getting the business off the ground, making a conscious yet committed effort towards sustainability will be rewarding not only for your business but also yourself.”

Hernaldo Turrillo

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How Innovation And Sustainability Carve The Future Of Financial Services

Hernaldo Turrillo — Fri, 15 Apr 2022 10:46:59 +0000

Factors like the financial crisis, a global pandemic and an uprise in alternative finance solutions have forced the industry to evolve at an accelerated pace. Is this speed of changing the defining characteristic of the next stage of financial services? Or are there more profound underlying changes happening to reveal a paradigm shift?

How Innovation And Sustainability Carve The Future Of Financial Services

Change is a powerful feature. It reshapes global business and society (as a whole). As the emerging technologies turn human-centric in their nature, financial services are also facing a breakthrough in their conventional mechanisms. This is pivotal in its evolution into a more sustainable and inclusive industry altogether. This evolved version promises to restore public trust, with almost no trade-offs between yielding profits and ensuring positive social impact.

The financial services are undergoing disruptive innovation due to key driving factors- evolving customer expectations, rapidly advancing technologies, and changing landscape of regulatory grounds. Fintech innovations like cryptocurrencies, Big Data, and peer-to-peer lending are grabbing the attention and imagination of investors and customers.

Creating the Future: a Hacker’s Guide to Financial Services is a comprehensive report powered by Finastra FusionFabric.Cloud, where over 50 contributors have shared over a hundred predictions on the financial future. The report by Fintech Talents (by VC Innovations Ltd.) creates a relevant narrative, depicting some of the intriguing insights over what trends are going to redefine the future of our existing financial and banking system.

Path-breaking solutions to carve out better financial systems

ESG (Environment, Social, and Governance) for a sustainable finance

Over the past few years, the ESG criterion is a popular key metric that investors use to evaluate businesses. The parameters that decide the ESG criteria differ as per the industry standards. The environmental criteria could include everything from energy usage to how waste is disposed of, and even the treatment of animals.

On the other hand, the social criteria are primarily related to a company’s conduct with its stakeholders and its business relationships. This includes its treatment of the suppliers, the relationship with the surrounding community and the social impact it makes on them, or even the conditions of its employees.

Governance criteria, however, have traditionally been an afterthought. Nevertheless, its true meaning is changing, being relatively pertaining to environmental and social issues. Everything from executive pay to shareholder rights, or internal controls- are all relevant to investors within this criterion.

Contributors to Fintech- investors, consumers, and incumbents believe that the industry plays a central role in finding unique solutions to the challenges posed by ESG. The EU Sustainable Finance Disclosure Regulations were introduced in March of last year. This was followed by a roadmap published by the Treasury in the month of October that outlined new Sustainability Disclosure Requirements.

This is to continue with the development of the frameworks for appropriate regulation and reporting of ESG in financial services. Gartner reported that 85% of investors considered ESG factors in their investments in 2020. This illustrates the rapidly growing importance investors place on ESG issues.

While sharing his concern about the inadequate upgradation measures, Dinis Guarda, founder of intelligenthq, citiesabc, and openbusinesscouncil says for the report by Fintech Talents, “According to an estimate by OECD and World Bank, an investment of 6.9 trillion will be required by 2030 to meet the ESG targets for climate and development. The current spending on infrastructure is no more than USD 3.4 – 4.4 trillion, lagging significantly behind what is required”.

The year 2022, for Mohamed Moullouze, Chief Innovation Officer at Attijariwafa Bank, will be the year for FS firms to make a progressive effort in bringing ESG products and services within the market. From green loans and mortgages to carbon tracking capabilities, and sustainable account checking- the innovative financial features are much awaited in the markets.

Embedded Finance ensures Bank as a Service (BaaS) experience for the consumer

Embedded finance is a seamless integration of financial services into a platform that has been functioning non-financial traditionally. For example, a ride-hailing app (like Uber) can accept cashless payments being made by its users on its digital platforms like apps and websites.

Adding the FS feature to business, retail, and corporate customers to a point where they would prefer the consumption of services is BaaS. This makes it convenient for the customers to access these services even at third-party interfaces. Now, to remain relevant, the banks must adapt to this evolving trend by collaborating with service providers, distributors, and enablers. To meet the scalability targets, an open API platform-based approach could be implemented.

Almost every vertical of the finance ecosystem has been impacted by embedded financing. From offering insurance for home appliances at the point of purchase to buying parking through Google Maps- everything is possible with the ingression of embedded finance.

Today, there is virtually no part of the finance ecosystem that hasn’t been impacted by embedded finance. Everything from offering insurance at the point of purchase for home appliances to purchasing street parking through apps like Google Maps has been made possible due to the spread of embedded finance in everyday experiences.

Big players like JP Morgan (who is using some of its $12bn of its tech budget over the next year for developing embedded finance), Goldman Sachs (announcing its own BaaS portal for developers), and Barclays (launched Rise Start-Up Academy for fintech entrepreneurs) are coming up with innovative ways to make the most of the upcoming trend.

“I think more specialisation per underserved industries will see new embedded finance collaboration occur in 2022. Aside from just payments and investments, I think the next evolution ventures into the area of royalties and affiliate compensation solutions that leverage the same concepts for creators” Australia Hoover, III, CEO, CDC Federal credit union.

Open banking and embedded finance, combined, could open up numerous gates for an inclusive ecosystem. This means the lenders and borrowers from all financial backgrounds could be allowed to participate equally on common grounds. With an increasing number of use cases for embedded banking, every business can potentially become a Fintech that provides more frictionless and personalised services.

Decentralised Finance (DeFi)

DeFi is the umbrella term for all blockchain-based financial apps. These apps offer (and perform) conventional banking services over a platform that is mostly based on smart contracts. These smart contracts negate the involvement of any middleman or broker for the culmination of financial transactions.

“Decentralisation is the term of the day – everyone is speaking about it,” says Dinis Guarda, Founder of intelligenthq, citiesabc, and openbusinesscouncil. “DeFi is not just a trend; it is clear that an average person is tired of centralised money supply control; the unprecedented growth of Bitcoin and other cryptocurrencies proves that.”

It is his belief that the advent of a new financial era with the rising DeFi and Web 3.0 trends offers new avenues for the diverse user base to engage interactively with finance. Speaking specifically in the context, Guarda adds “The current financial system is not working for everyone, it is clear. The communities that have been unable to build generational wealth are looking for a meaningful alternative”, for the report by Fintech Talents.

There have been significant barriers to entry with conventional financial systems. Traditional financial institutions consensually required complex infrastructure, well-trained staff, and intricate IT backend systems to ensure regulatory obligations. DeFi simplifies this system overall. Users can engage themselves in frictionless transactions- borrowing, lending, insurance, liquidity, and compound- all on one platform. DeFi is evolving as the innovation advances, though, there are still many challenges that DeFi will need to address.

Platformification

The accelerated digitalisation of products, services, and processes has altered the traction banks followed for over years. The pandemic itself was enough to project the loss of agility in the traditional banking system.

The API-enabled fintech ecosystem dramatically changed the outlook of financial services. This clearly depicts that a platform provides the required flexibility and innovation while imparting the simplicity of transactions in a most cost-effective manner.

Platformification enables financial institutions to offer a wider range of products and services to their customers using a plug-and-play business model. Collaboration and innovation are at the heart of a successful platformification plan. With a product mix, the traditional financial institutions can benefit from the innovations and embrace APIs. As easy as it is said, achieving these goals could be quite challenging for these institutions.

As more and more customers are getting accustomed to taking advantage of countless services at their fingertips, accessing a wide array of financial tools at a single platform is a preferred mode. This is why despite established brand names, banks operating in traditional ways are unable to support the features that users expect.

“The Banking as a Platform model allows FIs to securely expose their platforms to fintech and developers in the cloud via open APIs. Trusted third parties can access and build on top of existing FSI platforms and FIs can augment their services with third-party offerings and make these new services available to customers through their Super Apps or channels. It’s all about becoming part of their customers’ lifestyle rather than simply being a banking app”, says Özkan Erener, CEO of VeriPark.

Platformification establishes an ecosystem that offers the right products for the clients on a single platform like WeChat. This ensures retention and resilience amongst the customers even in an increasingly competitive environment. Specialised services that particularly target the niche audience create fintech sub-sectors like wealthtech and insurtech that could leverage the financial services for a better future.

Financial services are evolving for a sustainable future

The community of innovators is quirky to be able to see what is coming for the future, not just what is happening now and here. They are able to capture and predict the impact new services and products will make on the evolving needs of the customer. What the stakeholders’ demand is more transparency and accountability from FIs. This requires improved financial performance while meeting regulatory compliance. Nevertheless, the most important attribute for a successful financial process is the ability to articulate the unique culture of the society and amalgamate it with the evolving trends.

Hernaldo Turrillo

The post How Innovation And Sustainability Carve The Future Of Financial Services appeared first on OpenBusinessCouncil Directory.

22% SMEs See Environment And Sustainability As Biggest Concern For Business This Year

Hernaldo Turrillo — Mon, 07 Feb 2022 12:31:50 +0000

Annual report reveals around one in four (22%) SMEs see environmental and sustainability challenges as the biggest concern for their business this year.

A new report reveals SME owners across the country are calling for more government funding to help businesses go green this year (87%), as over a third state their customers care about what their business is doing for the environment along with their own employees (24%).

The annual 2022 business challenges report carried out by card payments specialist takepayments Limited, surveyed SME business owners and decision-makers across the UK to discover the current small business landscape for the year ahead.

While the report findings reveal coronavirus restrictions as the biggest concern for small business owners for the year ahead (27%), around one in four (22%) state environment and sustainability challenges as the biggest concern for their business (22%), second to coronavirus.

This is due to a number of factors including worries of changing policies in relation to the environment (27%), concerns over customer demands for more sustainable products and processes (10%) as more than a fifth (18%) of business owners state they have noticed their customers caring more about sustainability over the past year, as well as pressures around sustainability and green initiatives in general (29%).

The biggest barriers for businesses to becoming more environmentally sustainable	Percent
Lack of funding	37%
Cost to implement	34%
Customer and client demand	32%
Lack of technology	30%
Time to implement change	28%
Lack of legislation	26%
Lack of information available	17%

The full findings of the Business Challenges report are available to view here.

As two fifths (39%) of business owners state they are passionate about making their business more sustainable, lack of funding (37%) and the costs to implement more sustainable practices and measures (34%) to their business was revealed as the biggest barriers to becoming more environmentally sustainable.

In fact, one quarter (24%) of small business owners state they see environmental issues negatively impacting their business’s finances in 2022.

With the financial implications in mind, it comes as no surprise that an impressive 87% think the government needs to offer more financial incentives for businesses to go green, as one in four believes implementing sustainable practices will positively impact the bottom line for their business and a third (33%) say that becoming more sustainable will give their business a competitive advantage.

Sandra Rowley at takepayments limited said: “It’s evident from our findings that small business owners need extra financial support from the government to keep up with the increasing customer demands for sustainable products and processes.
Despite the lack of financial support to make those bigger changes to their business, small businesses owners plan on making small changes this year to become more sustainable as one in five (22%) state they will use local and sustainable materials this year, as well as looking into ways to make their workplace more fuel-efficient (18%) with switches such as automatic lights and insulations as well as plans to cut down on the amount of waste their business produces (18%). ” 

For further information on the challenges facing UK small businesses read the 2022 report.

Hernaldo Turrillo

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ESG Investing and EIS Set For Substantial Growth In 2022

Hernaldo Turrillo — Thu, 30 Dec 2021 15:06:14 +0000

2021 saw a number of headlines in the world of investment, with major strides being made in markets such as cryptocurrency, mixed with social media driven investment in companies such as GameStop, 2021 was an eventful year for investing. As we approach the end of the year however, with markets reeling and showing an increased level of volatility due to Covid and the recent Omicron variant, the question is what are the investment trends going to be in 2022?

ESG investing saw substantial growth in 2021 and it seems to be ready to emulate this in 2022. The way investors make their decisions has changed permanently over the past few years and has no doubt been accelerated by the pandemic. Global ESG assets are on track to exceed $53 trillion by 2025, representing more than a third of the projected total assets under management, with Europe accounting for half of the current ESG assets. Research from IW Capital supports this trend with it showing that 45% of investors are looking to back green or sustainable firms in 2022 and 42% of investors are looking to back firms that benefit their community.

This shows a clear sign of the increased desire to invest in something which investors will hold a personal connection with, being given the chance to visit their investment into their local community and feel valued when they attend. One prime example of this is IW Capital CEO Luke Davis, who as a resident of Hove, has led a multi-million pound investment and renovation project on the seafront, creating a community hub and world-class entertainment venue known as Rockwater Hove (https://rockwater.uk). Part of this raise was a round open solely to residents which raised over £1 million.

It was a pivotal year for the Enterprise Investment Scheme also, with it being predicted to show equally impressive gains going into 2022. Since its inception in 1993, the Enterprise Investment Scheme has raised over £24 billion in funds for almost 33,000 companies. This trend continued into 2020 with a total of £1.9 billion of investment being raised by 4,215 companies. With over 6 million SMEs in the UK, making up 99.9% of private sector businesses, EIS is an essential tool to accelerate the country’s SME landscape. Providing such pivotal support to the backbone of the economy, if the EIS scheme were given greater muscle to assist startups and scale-ups to traverse the challenges posed by the post-Covid economic arena, it could provide for a boost for the UK economy as a whole.

Whilst there is still uncertainty in the investing world, along with obstacles caused by the Omicron variant, it seems the way investors are choosing their investment has changed and they are increasingly choosing investments which not only benefits their financial gain but also their local community and the environmental impact which their investment has. This seems to be here to stay heading into 2022.

Luke Davis, CEO of IW Capital discusses:

“This past year was certainly a momentous year in the world of investing. The pandemic has had an impact on the UK in ways that we could never have predicted, it has created a new class of investor, one more concerned with the impact their capital is having and the difference it makes to their local area.

“Given the chance, investors are more eager than ever before to make their financial decisions with altruism in mind. That is not say they don’t need good returns, but that if they can, doing good with their money is now a priority and this, I believe will be an important trend throughout 2022.

“Investing has never been more emotionally charged after a year where the social, environmental and medicinal good of companies has been in sharp focus. Individuals now want to back companies that can prove they are beneficial to the local area, either through employment, redevelopment, or community outreach. This comes alongside what the firm is doing on climate change and carbon emissions which is, as ever, increasingly important.

“The EIS could also be an important trend throughout 2022. The EIS can be said to offer a win-win situation for both investors and small businesses – providing SMEs with much-needed investment to provide them with a platform to grow, whilst providing investors with tax reliefs to incentivise this investment. Small businesses and SMEs throughout the UK have benefitted enormously from the EIS in the last 25 years, fuelling growth and job creation at an impressive scale. SMEs are becoming so inventive and versatile with their companies and making sure they are at the forefront of the UK business scene. SMEs are an indispensable part of the UK economy and the outlook for the festive period is a reward for their constant hard work.”

Hernaldo Turrillo

The post ESG Investing and EIS Set For Substantial Growth In 2022 appeared first on OpenBusinessCouncil Directory.

5 Incentives For SMEs To Go Green

Hernaldo Turrillo — Wed, 28 Jul 2021 17:55:08 +0000

Smaller businesses have limited resources at their disposal to help them become more eco-friendly. They also face a specific set of challenges due to their size and stature.

However, if you are running your own small and medium-sized enterprises (SMEs), then you are not powerless to improve. Should you adopt a proactive mindset, your SME can employ various measures to better its situation and that of the planet. It is arguably your moral obligation to keep innovating here as an entrepreneur.

Still, the changes can be challenging, and certain business leaders may shy away from redefining many of their processes. In the UK, 30% of smaller firms have no intention of becoming more sustainable, despite their government’s commitments to slashing emissions. SMEs are often in vulnerable positions at the best of times, and overhauling their already waning operations may not seem viable during a pandemic.

That said, time is of the essence. The decisions you make here as a leader of an SME are crucial. If you are short on incentives to go green as a small business leader, then keep reading.

Having a Collective Mindset

Some SMEs may perceive themselves as having a degree of anonymity, as they are not typically widely known by the public. Therefore, they may be under the false assumption that their actions are largely inconsequential on a grander scale.

However, SMEs are part of a collective. They are dependent on one another in propping up their respective industries, generating interest in consumer trends, and of course, protecting the environment. If smaller businesses start to abandon their efforts to better the planet’s wellbeing, others may assume that their own efforts are too ‘smaller scale’ to make a lasting difference.

Eco-friendly measures are a teambuilding exercise. All firms need to rally together to make a substantial impact on creating a sustainable environment. If you are unwilling to implement greener measures so far, try to consider how your actions may be affecting others. Are you a small business that can quietly shirk its responsibilities, or are you a part of something bigger?

Using the Societal Reset

The pandemic was devastating in many respects. Many businesses collapsed into nothing, while others were wounded, reevaluating their positions in their respective marketplaces.

However, there were some silver linings. For example, the reduced economic activity helped the environment considerably. Still, while things have slowly started to revert to how they were pre-pandemic, now could be an opportune moment for your SME to utilize this pivotal moment in history.

For many entrepreneurs, the emergence of the coronavirus has also been a time for sobering reflections. They have questioned how their business can persevere and how they must adapt to survive. It is a process that is still ongoing. Therefore, it may be a good idea to ask yourself questions like:

If my SME is currently in a recovery process, could I make it a green recovery?
Should I be trying to help my SME to survive or thrive?
Could I hold myself more accountable for my decisions in ways that others have recently?
How responsible should I feel for making the world a better place in times of struggle?

Though times are uncertain, it might be that this ‘societal reset’ is an excellent opportunity to restructure your business in numerous ways. From your profound sense of values to how you perceive your place on the industry stage, eco-friendly measures can bring clarity to your SME’s sense of purpose and importance.

Reading Your Customers

There is a sense worldwide of new beginnings taking place. Even if your attitudes to eco-friendly measures may not have changed too much, your customers may have other ideas in mind.

Last year, a study revealed that two-thirds of North Americans preferred eco-friendly brands, and it is unlikely things have gone the other way since. It is a cliché rule, but the saying that the ‘customer is always right’ does ring true. Ignoring the wants of your target audience can only spell bad things for business, especially if the pandemic has bruised your smaller company enough in recent times. Ultimately, your customer’s demands double as your roadmap to success.

Remember, you may have struggled as an SME leader during the pandemic, but you have not been alone in any of your bad luck. Most people have faced some manner of hardship recently. If you can supply your customers with any form of hope after such a bleak period, your SME can be a beacon of light in darker times. After that, your business could feasibly boom, as customers may be willing to pay substantially more for green products and services.

As 30% of UK small businesses proved, not every SME is willing to introduce sustainable measures. Perhaps your methods would grant you a competitive advantage? After your efforts, you may become your customer’s preferred SME, as they feel good about your firm and themselves when trading with you.

Inspiring Further Opportunities

Sustainability is often seen as an endgame solution. However, for savvy entrepreneurs, it can merely be a starting point to a brand-new world of opportunity.

For instance, this guide to accepting digital payments can teach you how eco-friendly these measures can be by creating a paper-free economy. Not only this, but the digital payment can also increase company efficiency, boost revenue, cut costs, and make your firm more accessible to a wider variety of customers. Therefore, sustainability can be the beginning of a new trajectory for your small business.

Of course, trading in an uncertain or vulnerable economic period is highly challenging for SMEs. Therefore, you should utilize every advantage in your arsenal. So long as you play your part, sustainability can be rewarding. You would be helping the environment, but at the same time, enabling the prospects of your SME to truly flourish.

Benefitting Your Employees

Of course, a win for your business is also a win for your employees. As the SME begins to reap the rewards of being sustainable, staff could also be treated to perks and pay rises as you see fit.

All good employers want to look after their employees. However, a smaller firm means less staff, which might mean that you are closer to your workers. Consequently, you may be more acutely aware of their needs. Running a more sustainable firm may address many of their concerns and nurture a more inclusive, caring, and considerate work culture.

Sustainable measures that may benefit your staff include:

Work from home schemes – if employees are not travelling to and from work each day, they will slash emissions. At the same time, this arrangement may be ideal for them if they need time away from the workplace for personal reasons.

Introducing more plants – Plants oxygenate rooms and reduce air pollution. They can also be visually appealing and mood-boosting inclusions to a workspace, so incorporating some greenery could be helpful.

Utilizing sustainable cleaning products – Cleaning products often contain hazardous chemicals, creating pollution and endangering staff if they encounter them. However, their eco-friendly variants are biodegradable and far less dangerous.

Many employees may also wish to work for an SME that simply does the right thing. Succeed in this, and you may create a work culture that your staff are fully invested in and loyal to. Being a sustainable SME means going the extra mile. If you cannot do that yourself, then how can you expect your employees to have a similar attitude to their work?

Hernaldo Turrillo

The post 5 Incentives For SMEs To Go Green appeared first on OpenBusinessCouncil Directory.

Business Savings Are Everywhere If You Know Where to Look, Start Here

Hernaldo Turrillo — Wed, 28 Jul 2021 08:29:56 +0000

Businesses are always looking for ways to make more money. At times, their efforts to make money end up costing them the very resource they were trying to increase. If sales are low, you don’t necessarily increase sales by hiring more salespeople. If you have a deficiency in training, you will just pass that deficiency to a new crop of trainees. In trying to fix the problem, you have made it worse in the most expensive possible way. It doesn’t have to be that way. Before you can solve the problem, you have to know what is causing it. That can be an expensive lesson to learn.

Sometimes, less really is more. You can make more money by reducing waste and inefficiencies. It can be hard to know what aspects of your business are truly wasteful. You might look at the amount you are spending on condiments and decide that you can save a lot of money by switching to cheaper products. But if none of your workers like the alternative, they might stop eating in the cafeteria and start eating out, making them either late for work or rushed and out of sorts. Perhaps you should keep stocking the good catsup. Instead, try cutting the following.

Reduce Electricity

By switching to something like demand management, you can not only cut your energy costs, but get paid just for being willing to reduce power during high-demand events when the grid is undergoing too much load. On those scorching hot days when no one is questioning the concept of global warming, every air conditioner connected to a wall socket is running on full. This leads to those rolling blackouts that constitutes a bad day for everyone. Some of those blackouts don’t have to happen. There are ways to budget one’s power and save big on the bill.

Electricity is not the only way. You can also utilize solar. There are still deep tax credits for homeowners and many benefits for businesses that invest in solar. One of the greatest benefits is diversification. If you know you are doing business in an area where the grid can’t handle the load, solar gives you another option when the lights go dark for everyone else. There are ways to deal with the upfront investment. And the long-term savings benefits are hard to deny. By cutting wasteful energy use, you will save a lot of money. And the planet will thank you.

Reduce Hazards

Safety saves money. By making your business safer, you can save thousands almost immediately. You will always have to pay your workman’s comp taxes. But you will not have to spend as much money settling claims when fewer people are injured. When people are not sick or injured, they can be at work and remain productive.

Safety measures might seem like an expense rather than a savings. But you will always save money when spending on safety measures. There are the fines and penalties you face for not including safety measures. There are the business-ending lawsuits you will almost certainly lose when safety is neglected. And there is the loss of person-hours and the loss of reputation inherent in an unsafe environment. By cutting corners with safety spending, you are not getting ahead but falling behind. Reducing accidents and injuries is within your ability as a business owner. And it will always save you money.

Meetings

Business meetings are never seen as a positive interruption of one’s workday. Taking a team away from the task at hand to talk to them for an hour about something that could have been shared in an email is unproductive, frustrating, and costly. If you must have team meetings, make them short and include only one or two relevant pieces of information. Have managers do individual and small group consults for training. Make training videos that workers can access as their schedule permits. Facilitate discussion over business chat, video chat, and other tools used for remote work. The fewer times you pull your employees away from their desk, the better. Make sure your meetings are not costing you money.

Reducing waste makes you money. Some of your biggest savings are gained by reducing energy use, safety hazards, and unnecessary meetings.

Hernaldo Turrillo

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