The summary of the roundtable discussion emphasizes the need to move forward to comply with environmental regulations without neglecting the economic aspect and the profitability of companies. Discover more about the participants and how their projects are helping the sector place greater emphasis on ESG strategies!
Coinscrap Finance was pleased to share the space with Claudio Pinto, Senior Technician and Head CBDC-DREX at Banco da Amazônia, and Andres Fontao, Co-founder & Managing Partner of Finnovista. Our Head of Business Development for LATAM, Diego Romero Tuccio, thanked the invitation and greeted the participants before starting the roundtable at the request of Sol Irene Park, Head editor of SIMALCO and moderator of the session.
The world of finance needs to shift towards sustainability
Sol wanted to highlight the value of COCO {CO2}, an artificial intelligence engine developed by Coinscrap Finance that allows financial institutions to know their customers’ carbon footprint by analyzing their banking transactions. Diego began by indicating that emissions associated with a company’s operations, for example, can be classified as direct or indirect emissions.
The first comes from sources owned or controlled by organizations. An example of such sources would be the machinery used within their facilities for production. The second results from that activity but occurs elsewhere. This would be the case of the electricity consumed, which is generated by a third party.
“From this point, we can provide financial institutions and users with indicators so they can combat climate change from their trench,” Diego assured. The use of globally standardized metrics adds additional reliability to COCO {CO2} “Because a gas station expense is not the same as a hair salon,” he added.
The regulation facing Latin America in terms of greenhouse gas emissions
All participants agreed that Europe is taking steps to meet the targets set in the Paris Agreement on sustainability: “To become the first climate-neutral economy and society by 2050,” according to the European Council.
Andrés commented that the new generations “are very focused on demanding that institutions have these sustainability programs. These tools, like Coinscrap Finance’s, become indispensable in daily life because they are part of personal finance.”
Although regulation seems to lag slightly behind Fintech developments, Finnovista’s co-founder wanted to make it clear that it is essential for companies to adapt to the emission limits that are coming. “This regulation will eventually require us to have these sustainability schemes within companies.”
Mexico, for its part, has a General Climate Change Law, updated as of April 1 this year, in which it commits to: “Regulate greenhouse gas and compound emissions (…) as provided by Article 2 of the United Nations Framework Convention on Climate Change.”
Carbon footprint calculation tools, what can they bring to the financial sector?
Having a national emissions registry seems to be the path chosen by this country to control and reduce them. Thanks to innovative Fintech developments, companies will be able to establish successful ESG strategies without facing costly technological developments or increasing their workforce.
As Diego Romero commented: “Something very important about our tool is that we are certified by TÜV.” This is a German certification organization with the highest quality standards, ensuring that COCO {CO2} fulfills the purpose of calculating the carbon footprint according to ISO 14064 and the GHG Protocol for organizations.
Only 5 companies have achieved this milestone in Europe, and Coinscrap Finance is an absolute pioneer in using banking transactions to obtain this calculation. When asked about the use cases for this technology, our Head of Business Development for LATAM answered:
“It gives complete visibility (to banks) so they know the footprint
of their users. It also allows them to send specific communications to
each cluster based on consumption. One of our clients shows
the environmental impact to its users while allocating part of their
purchase amount to cleaning plastic from the oceans.”
Diego Romero Tuccio
Head of Business Development LATAM
Innovative initiatives transforming society: BASA Digital by Banco da Amazônia
Claudio Pinto took that moment to share a success story from the institution: the microcredit service for rural areas of the Amazon. Using blockchain technology, this Brazilian development bank enables the underserved population to access credit in just two days.
These are micro loans aimed at small producers who care for the environment and generate wealth in the region. The minimum amount they can access is US$ 770. Do you think it doesn’t make a difference? Here’s an impactful fact: before launching this project, annual operations with this population segment were a thousand a year. In 2024, more than 20,000 were completed.
Sustainable development accompanies economic development
The moderator handed over to Andrés Fontao, asking his opinion on investment in sustainable development by the financial industry. “Only 15% of companies are complying with regulations (on emissions), so we must address this issue, and investors will need to focus here,” the expert indicated.
Andrés predicted that the coming months would see widespread adoption of carbon footprint calculation tools: “It will be another part of any service or operational process that is launched. When building new solutions, we will be aware of their environmental impact before launching them.”
The new sustainable business model will be of great interest to banks, as it offers the opportunity to offer green products to offset their customers’ ecological footprint: advantageous loans for NetZero companies, investment in projects with positive social impact, or mortgages that consider environmental criteria. It is a huge growth opportunity for the financial sector.
We would like to thank SIMALCO for the opportunity to talk with significant actors in the Latin American financial landscape and to enjoy such an enriching discussion. See you soon!
