Clifford Chance
Sustainable digital finance: How technology can accelerate the transition to a sustainable economy
25 October 2021
The UK needs to act now to harness the benefits that technology can bring to accelerate the availability and use of green and sustainable finance, as well as to address the growing challenges and potential harms.
Sustainable digital finance describes the intersection of the use of technology in finance with environmental, social and governance (ESG) objectives. Although there is no universally accepted definition, this concept often refers to the use of technology, including artificial intelligence (AI), distributed ledger technology (DLT) or the internet of things, to further ESG or sustainability initiatives in the finance sector and the wider economy.
To date, the UK’s policy approaches to sustainability and FinTech have generally been considered separately and have developed in parallel. There are a host of existing initiatives in each of these areas which impact the current UK regulatory and policy landscape and are likely to influence any future approach taken on sustainable digital finance.
TheCityUK, in partnership with Clifford Chance, has published a new report on sustainable digital finance. 'Sustainable digital finance: How technology can accelerate the transition to a sustainable economy' shares five recommendations for policymakers to ensure that the UK retains its leadership in sustainable digital finance, while meeting its international obligations and other applicable targets.
