Sustainable finance broadly refers to the consideration of ESG factors when making financial and investment decisions, with the ultimate goal of creating more long-term investments in sustainable economic activities and projects. This concept represents a paradigm shift when compared to the traditional financial system, which has often been perceived to be solely profit-oriented at the expense of the environment and social welfare. 

Startups within this space are enabling sustainability-focused financial services such as 1) digital banking—where client deposits are deployed into sustainable uses, 2) facilitation and automation of investment into ESG-related companies and ETFs, 3) tools for investors to analyze sustainability factors and the real-world impact of their portfolios, and 4) white-label solutions for financial institutions to offer their own sustainability-related products.

* Note: Additional sections (such as market sizing, detailed overview, and incumbents) can be provided on request.