Why do FinTechs need dedicated ESG teams

Deem NaPattaloong our consultant managing the role
As the world becomes increasingly aware of the importance of environmental, social, and governance (ESG) issues, FinTech firms are starting to realise the need for dedicated ESG teams. ESG teams are responsible for identifying, evaluating, and managing the ESG risks and opportunities that FinTech firms face, and they play a critical role in helping companies achieve their sustainability goals.

But why do FinTech firms need a dedicated ESG team? Here are some key reasons:

ESG risks

To identify and manage ESG risks: FinTech firms face a range of ESG risks, including regulatory risks, reputational risks, and operational risks. A dedicated ESG team can help identify these risks and develop strategies to manage them, helping to protect the company's assets and reputation.

ESG opportunities 

To leverage ESG opportunities: FinTech firms also face a range of ESG opportunities, including the opportunity to create positive social and environmental impact, to differentiate themselves from competitors, and to attract and retain top talent. A dedicated ESG team can help identify these opportunities and develop strategies to capitalise on them, helping to drive growth and success. 

ESG regulations

To comply with ESG regulations: Many countries and regions have adopted ESG regulations that require companies to disclose and manage their ESG risks and opportunities. A dedicated ESG team can help FinTech firms comply with these regulations and avoid potential fines and penalties. 

Sustainability goals

To support the company's sustainability goals: FinTech firms often have sustainability goals that they want to achieve, such as reducing their carbon emissions, supporting communities, or promoting diversity and inclusion. A dedicated ESG team can help support these goals by developing and implementing strategies to achieve them.

Expertise and leadership

To provide expertise and leadership: ESG issues are complex and dynamic, and they require specialised expertise and leadership to manage effectively. A dedicated ESG team can provide the expertise and leadership needed to navigate these challenges, helping to ensure that the company's ESG strategy is aligned with its business goals and objectives.

Stakeholders

To engage with stakeholders: FinTech firms need to engage with a range of stakeholders, including investors, regulators, customers, employees, and communities. A dedicated ESG team can help facilitate these engagements, building relationships and trust with stakeholders and demonstrating the company's commitment to ESG issues. 

Innovation and growth

To drive innovation and growth: ESG issues are increasingly becoming a source of innovation and growth for FinTech firms. For example, companies that develop innovative solutions to reduce their environmental impact or support communities can gain a competitive advantage and drive growth. A dedicated ESG team can help FinTech firms identify and pursue these opportunities, driving innovation and growth. A dedicated ESG team can help FinTech firms identify and pursue these opportunities, driving innovation and growth.

Overall, there are many reasons why FinTech firms need a dedicated ESG team. A dedicated ESG team can provide the expertise and leadership needed to manage ESG risks and opportunities, engage with stakeholders, and drive innovation and growth. By having a dedicated ESG team, FinTech firms can demonstrate their commitment to ESG issues and position themselves for long-term success.

How Marks Sattin can help 

At Marks Sattin, we have a network of specialist ESG and internal audit recruitment consultants who can place talented professionals in your business to consult on governance, tax, legal, compliance, and change & transformation. This, coupled with our experience crafting inclusive talent strategies, will help your organisation make informed strategic decisions and take advantage of emerging opportunities.

To find out more about how we can help you find top ESG talent, please submit a brief, and a member of our team will be in touch. Alternatively, register your details and you will be the first to hear about the latest ESG vacancies.

15/02/23
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