ESG in Fintech: An Overview

TR-2023-209, Authors: Cancan Wang, Associate Professor, IT University of Copenhagen, Qiuyu Jiang, Ph.D, Research Assistant, IT University of Copenhagen, Yvonne Dittrich, Professor, IT University of Copenhagen, Carsten Østerlund, Professor, School of Information Studies, Syracuse University.

Authors:

Cancan Wang, Associate Professor, REFLACT research group, Business IT, IT University of Copenhagen
Qiuyu Jiang, Ph.D, Research Assistant, REFLACT research group, Business IT, IT University of Copenhagen
Yvonne Dittrich, Professor, Software Engineering, Computer Science, IT University of Copenhagen
Carsten Østerlund, Professor, School of Information Studies, Syracuse University

Abstract:

This report provides an overview of the current ESG reporting status of Fintech businesses in Denmark and the European Union (EU). We focus on startups as they tend to be disproportionately burdened by compliance and investment pressure due to their limited resources. Our goal is to take a first step towards developing a collective ESG reporting model for Fintech startups that enhances their competitive advantage despite a volatile economic and regulatory environment.

This report presents the current state of ESG reporting in the Danish Fintech sector as informed by wider international discussions within the sector. In it, we map out the five forces that shape the Fintech ESG landscape: 1) policy and regulatory authorities; 2) capital providers; 3) clients and customers; 4) talent; and 5) knowledge communities. We focus on ESG reporting needs, practices, and challenges from different stakeholders’ perspectives. Building on these insights, we suggest a collective approach to ESG reporting in Fintech that is adaptive to the dynamic nature of developments in both ESG and Fintech.

TR-2023-209
ISBN 978-87-7949-008-6

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