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Global Green Fintech Competition

Themes and Problem statements

1. Net-zero Transition or Transition Planning

As the real economy transitions to net zero, banks have to manage the associated risks and adjust their business models as necessary. For example, they might embed transition considerations into their governance and risk management frameworks and support their clients by providing advisory services and transition financing. In the process, banks face numerous challenges around data availability and quality, harmonisation of taxonomies and scenario analysis. Examples of problem statements include:

2. Climate Risk Management

To meet supervisory expectations, banks are increasingly looking to assess and manage physical risk and transition risk. This is a challenging task due to the forward-looking nature and long time horizon of climate risk. Data is often unavailable and inconsistent, methodologies are not yet mature and uncertainty exists in the science of climate change (e.g. tipping points). Examples of problem statements include:

3. Green and Sustainable Finance

To meet investor demand and support clients’ green or transition projects, banks offer green and sustainable investment products and financing. In the process, banks have to balance several objectives – ensure compliance with financial regulations, avoid greenwashing and seek commercial returns. Examples of problem statements include:

4. Sustainability/Climate-related Disclosure and Reporting

To maintain transparency and comply with regulations, banks have to make disclosures that are in line with recognised standards and frameworks. Banks face a number of challenges such as data governance and management. It is also difficult for them to collect high quality data from clients, particularly SMEs and non-listed companies which are not subject to disclosure regulations and often do not have the resources to collect data. Examples of problem statements include: