Noteworthy Recognition: auxmoney & Ethic
auxmoney and Ethic are making impressive advancements in sustainability by harnessing fintech innovations to incorporate ESG (Environmental, Social, Governance) factors and to promote conscientious financial decision-making.
As a leader in financial inclusion, auxmoney operates a prominent digital lending platform across Europe, with a total lending volume nearing €6 billion expected by mid-2024.
Central to its sustainability initiatives is the issuance of Social Bonds, which offer institutional investors an appealing asset class geared towards generating social impact.
These bonds enable funding for loans benefiting underrepresented groups, including students, retirees, low-income families, and the self-employed—individuals who are frequently sidelined by conventional banking practices.
To date, auxmoney has issued four Social Bonds, amounting to €1.325 billion, bolstering the establishment of the European market for sustainable Asset-Backed Securities.
With clear ESG reporting and a dedicated Social Bond Report, auxmoney highlights the concrete social advantages stemming from its lending activities, such as enhancing borrowers’ financial wellbeing and resilience.
Moreover, the company’s pledge to reduce its carbon footprint through initiatives focused on green energy and its engagement in the Düsseldorf Climate Pact further underscores its commitment to environmental sustainability.
On the other hand, Ethic is transforming sustainable investing by providing a customized platform that aligns investors’ values with their financial aspirations.
Its multi-asset portfolios empower wealth advisors to construct investment strategies that prioritize both environmental and social considerations.
A significant breakthrough in 2023 was the introduction of Ethic’s Biodiversity & Ecosystems investment solution, which utilizes cutting-edge research to foster investments that champion ecological sustainability.
The platform also features proprietary data models that enhance portfolio impact by approximately 15% compared to benchmarks, enabling clients to observe the tangible outcomes of their investments.
Additionally, Ethic promotes financial literacy through initiatives like its new video studio and interactive portfolio reports, assisting advisors in conveying the significance of sustainable investing and deepening engagement with responsible financial practices.
Both auxmoney and Ethic exemplify how fintech can be a catalyst for sustainability, blending financial inclusion and environmental stewardship with innovative technology.
