🧭 Kick off August with your weekly risk report from the BIG Risk Navigator

Hey 👋,

Last week, I launched the BIG Risk Navigator, and I’m so grateful to have you following the journey…

If you’re a C-level executive from large corporations to startups with over $1 million in annual revenue.

This newsletter was made for you. 

Learn about the risks and opportunities behind sustainable innovations, get case studies and expert insights…

And equip yourself with the industry news that will make you stand out amongst your peers.

Thank you for joining the BIG Risk Navigator journey!

Now… ready for some climate fintech news?

• Introducing Clive™: The Insurance Industry’s First AI-Powered Claims Adjuster: Five Sigma unveils “Clive”™, an AI-powered agent revolutionizing claims processing with unmatched efficiency and accuracy.

• New Deloitte Survey: ESG Data Quality Continues to be a Challenge: Deloitte’s latest survey highlights the ongoing struggles businesses face with ESG data quality amidst increasing mandatory reporting requirements.

• 60% of Asia Pacific Investors Ready to Pay Premium for High ESG Maturity Targets: KPMG’s study reveals that 60% of ASPAC investors are willing to pay more for companies with strong ESG practices.

• Brazil Aims to Attract $20 Billion for ESG Projects Using $2 Billion Climate Fund Leverage: Brazil’s innovative investment vehicle seeks to boost financing for early-stage sustainable projects, focusing on emerging sectors.

• Green Impact Exchange Files to Launch First-Ever Sustainability-Focused Stock Exchange in U.S.: The Green Impact Exchange aims to simplify sustainable investment and open new capital streams for eco-friendly companies.

🎯 Introducing Clive™: The Insurance Industry’s First AI-Powered Claims Adjuster

In a groundbreaking move, Five Sigma introduces Clive™, the insurance industry’s first AI-powered Claims Adjustment Agent, designed to transform the claims processing landscape. 

Clive’s revolutionary capabilities leverage the power of artificial intelligence and automation to redefine how claims are handled by insurers, MGAs, and TPAs, setting new benchmarks in efficiency, accuracy, and cost reduction. 

Read more

🎯 New Deloitte Survey: ESG Data Quality Continues to be a Challenge

Deloitte’s survey of 300 senior business leaders across industries details their approach to and integration of environmental, social, and governance (ESG) measures. 

The findings reveal that mandatory reporting requirements are prompting many companies to strengthen their focus on integrating sustainability into strategic planning, risk management and data governance. 

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🎯 60% of Asia Pacific Investors Ready to Pay Premium for High ESG Maturity Targets

✅ Key Insights:

• Investor Focus: 71% of investors prioritize ESG due diligence in transactions, with 58% citing its monetary value.

• ESG Premium: 60% of ASPAC investors are willing to pay a premium for targets with high ESG maturity.

• Challenges & Solutions: Investors face challenges in scope selection, data quality, and financial translation, but are increasingly integrating ESG into their strategies.

ESG due diligence is becoming a critical priority for Australian dealmakers, mirroring global trends. 

According to KPMG’s ESG due diligence study, 71% of investors have increased the importance of ESG in their transactions over the last 12 to 18 months. 

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🎯 Brazil Aims to Attract $20 Billion for ESG Projects Using $2 Billion Climate Fund Leverage

✅ Key Insights:

• Brazil launches a new investment vehicle to boost sustainable projects, aiming to generate $10-20 billion in financing.

• The initiative excludes mature sectors like wind and solar energy, focusing on emerging sectors.

• Foreign investors expected to embrace the new mechanism for financing ESG projects.

Brazil’s Treasury and Securities and Exchange Commission (CVM) are set to launch an innovative investment fund consortium aimed at early-stage sustainable ventures. 

This new vehicle will function similarly to private equity funds (FIPs) and receivables investment funds (FIDCs), providing crucial financing for projects aligned with ecological transformation.

Read more

🎯 Green Impact Exchange Files to Launch First-Ever Sustainability-Focused Stock Exchange in U.S.

The Green Impact Exchange (GIX) announced today that it has filed an application with the Securities and Exchange Commission (SEC), aimed at establishing the first sustainability-focused stock exchange in the U.S.

According to GIX, the new exchange will help simplify the investment landscape for sustainability-focused investors, while helping companies access a growing pool of capital directed towards sustainable investment. 

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Transforming Banking with Green Data

OPINION PIECE: Rafael Cifuentes, Amy Ingram and Magdalena Chullmir from Clarity AI

In today’s market, retail banks must rapidly adapt to meet customer needs and ensure a positive experience. In the sustainability realm, this is no different.

Consumers, especially younger generations, care about the planet and they want banks that feel the same. In the UK, 62% of individuals aged 18-34 have expressed a desire for more information about their carbon footprint to reduce their environmental impact. Furthermore, Generation Z and millennials also rank climate change as one of their top concerns, second only to the cost of living.

✅ Highlights: 

• Top 3 concerns of new generations

• New generations are becoming the critical mass of customers

• Adding granularity to meet customers demand

• Strategies to differentiate sustainable brands for consumers

Given that younger generations represent a pivotal audience for the future (as shown in the graph below), retail banks seeking to attract and retain this segment should prioritize sustainability in their offerings. 

As a result, both traditional retail banks and first-generation neobanks are integrating sustainability features into their services. 

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GoHenry: Making Every Kid Smart with Money

GoHenry launched on 10 November 2012, as a UK pioneer of a prepaid debit card and financial education app that teaches kids and teens ‘to be smart with their money’, whilst also providing parents with a ‘tool to nurture healthy financial habits for children.

A firm believer in ‘learning by doing,’ Louise Hill (Co-Founder and COO, GoHenry) wished to enable kids to manage their own cards, establish saving goals, and learn financial literacy through in-app lessons. 

In 2024, 12 years after its launch, GoHenry (along with its US parent company, Acorns, and European arm, Pixpay) has:

• nearly 6 million subscribers across the UK, U.S. and Europe

• 1 in 5 British children between the ages of 10 and 12 already has a GoHenry card

To achieve this, Louise and her team had to show unmatched grit, perseverance, and commitment to the mission of boosting financial inclusion and education among kids around the world. This is her story. 

Read more