- SCxSC Summit focuses on AI and blockchain for sustainability
- Empowering small players via decentralized finance and tech innovation
At the SCxSC Fintech Summit 2024, themed ‘Where Innovation Meets Purpose,’ industry leaders gathered to discuss how artificial intelligence (AI) and blockchain can enhance transparency and drive sustainability in finance. The flagship event returned this year with a focus on purpose-driven innovation, featuring panels that explored visionary ideas and practical use cases for the fintech sector.
One session, titled ‘Innovation for Tomorrow: Driving Sustainable Growth and Social Empowerment’, brought together Helene Li, CEO & co-founder of GoImpact Capital Partners, and Vince Turcotte, Business Development Lead for Asia Pacific at Chainlink Labs. Moderated by Géraldine Andrieux Gustin, Managing Director of The Hive Climate AI, the panel emphasised the importance of collaboration, technology, and regulatory frameworks to bridge funding gaps and accelerate sustainable growth.
The cost of sustainability
Li opened the session by stressing the gravity of climate change and the financial gap that challenges net-zero goals. “Achieving net-zero emissions by 2050 requires US$2 trillion (RM8.84 trillion) in investments annually until 2030,” she noted. This ambitious target underscores the need for both public and private sector support and innovative financing mechanisms. For her, the estimated multi-trillion-dollar funding gap is both a challenge and an opportunity, particularly for tech-driven investments.
Li further highlighted the potential for blockchain and artificial intelligence (AI) to address transparency and reliability issues in environmental reporting, framing technology as central to meeting sustainability challenges. “Sustainability is a team sport,” she said, emphasising that effective collaboration and shared knowledge are crucial for success.
Blockchain and AI take centre stage at SCxSC Fintech Summit
Turcotte, explored the role of blockchain in creating verifiable, transparent records for environmental data. Describing blockchain as a solution that combines transparency, accountability, and efficiency — he argued these three elements are essential for a reliable carbon market.
Chainlink’s role in this arena includes projects that streamline data tracking and verification for environmental assets, aiming to establish what Turcotte calls a “unified golden record” that can track an asset’s lifecycle from creation to retirement.
For example, he discussed Floodlight, a project utilising satellite data to validate environmental metrics across small geographic areas, as well as Hyphen.Earth, which combines satellite and Internet of Things (IoT) data to improve climate data accuracy. “Without the transparency and global understanding of where these credits rest, what they stand for, and what they’re worth, the hope of developing a real market remains just that—a hope,” he said. According to Turcotte, the lack of comprehensive, transparent data is one of the most pressing challenges in carbon credit markets today.
Blockchain and AI: Tackling data reliability challenges
A major barrier to sustainability efforts, as the panellists outlined, is data reliability. According to Li, a mere 5% of companies surveyed globally consider their environmental, social, and governance (ESG) data “reliable and complete,” a statistic she referenced to illustrate the substantial gap in data integrity and accessibility.
This issue has led companies like Chainlink and Microsoft to develop tech-based solutions to bridge the data gap. Microsoft’s AI for Earth initiative, for example, provides open-source tools and resources to help organisations better manage environmental data.
Gustin highlighted another example: Circulor, a blockchain company that provides transparency in raw material supply chains. By tracing materials from origin to end-product, Circulor helps companies verify the environmental and ethical integrity of their supply chains. She explained, “This type of innovation allows businesses not only to ensure compliance but to actively manage their impact.” She also pointed to Europe’s digital passport initiative, which now requires battery manufacturers, including major firms like Volvo, to demonstrate the provenance and carbon footprint of their products.
Sector-specific innovations in sustainability
The panellists shared examples of sectors embracing technology to promote sustainability. Li drew attention to Malaysia’s extractive industries, such as palm oil and metal plantations, which have begun adopting deep-tech solutions to minimise environmental damage while maximising productivity.
She explained that conglomerates like Sime Darby Bhd are implementing genomics and data-driven tools to reduce deforestation and biodiversity loss, demonstrating that even traditional industries can benefit from advanced technology to address sustainability challenges.
Energy optimisation was another highlight, with Gustin discussing Tibber, a Norwegian company that leverages IoT technology to manage energy use. Tibber’s model allows users to optimise energy consumption based on real-time costs, aligning with Norway’s commitment to renewable energy by encouraging consumers to adopt more efficient practices. “This type of data interoperability and availability can drive impactful energy management solutions in other regions too,” Gustin noted, pointing to Malaysia as an example.
Regulatory collaboration seen as key for sustainable finance initiatives
The panel agreed that collaboration across sectors and effective regulatory frameworks are essential for sustainable finance. Turcotte pointed out that Malaysia, with its rich natural resources, is well-positioned to lead sustainability initiatives in Southeast Asia.
He cited the Twelfth Malaysia Plan, which aligns with the United Nations’ Sustainable Development Goals (SDGs) and encourages public-private collaboration for sustainability. However, Turcotte stressed that regulatory engagement must include consultations with industry and community stakeholders to ensure that standards are relevant and supportive of market needs.
Gustin echoed this sentiment, advocating for cross-border standardisation to facilitate sustainable finance in Southeast Asia and beyond. She noted that regulatory frameworks could play a key role in reducing fragmentation in sustainability efforts. “Standardisation across regions is critical for creating an open and transparent carbon market,” she said, underscoring the importance of consistent regulations to attract investors and drive impactful climate action.
Empowering small-scale and rural players
In a discussion on social empowerment through sustainable finance, Turcotte emphasised the need for decentralised finance (DeFi) models that allow small-scale players, such as rural farmers, to access funding for climate-positive projects. Projects like Celo, which leverages mobile platforms to enable underserved communities to participate in microfinance and climate initiatives. According to Turcotte, creating access for smaller players can significantly increase their contribution to sustainability goals and help close the funding gap.
Li agreed, adding that sustainable finance needs to demonstrate real economic value to attract broader participation. While philanthropic investments initially propelled climate initiatives, Li argued that sustainable investments must show tangible returns. “This is not just about climate investment; it’s about building a resilient, sustainable economy that people want to invest in,” she said.
Future Trends: Technology Integration and Data Sharing
Looking forward, the panel discussed future technological trends in sustainable finance, including federated computing and advanced AI models. Gustin highlighted federated computing as a promising solution for organisations needing to share data without compromising privacy, which can enhance data collaboration across regions and sectors. Additionally, advancements in AI, including large language models, could streamline complex environmental data analysis, making climate risk assessments and sustainability reporting more accessible.
Li concluded by emphasising that sustainable finance requires a multi-disciplinary approach that combines environmental science with technology. She called for enhanced educational efforts to bridge knowledge gaps, advocating for programmes that teach cross-disciplinary skills to future leaders in sustainability. “Capital alone is not enough; we need pragmatic solutions and collaboration,” she stated, emphasising the collective effort required to address climate challenges.
The panel ultimately underscored that while challenges in sustainable financing are substantial, they are not insurmountable. With collaborative efforts, regulatory support, and advanced technology, panellists expressed optimism about the potential to bridge gaps in funding, data transparency, and sustainable growth.
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