Meet fintechs who are leading Sweden’s green revolution
Home to Klarna – the second most valuable fintech in the world – Stockholm is now a thriving hotspot for digital financial start-ups. The city led in the top five hubs in Europe for fintech investments and has an exciting pipeline of newcomers, including neobank June, ‘smart economy’ app Anyfin and open banking platform Minna Technologies.
At the same time, Sweden is consistently ranked as one of the world’s most sustainable countries, in particular for its use of renewable energy and commitment to green housing and transport.
When the two worlds collide and sustainability initiatives and benchmarks sweep the fintech sector, Sweden is ready to make real changes. So who are the disturbers to watch? Here are five green fintechs that are leading Sweden’s environmental revolution.
Documentation
Last month, climate impact starts Doconomy announced a $ 17 million round, making it Europe’s largest climate fintech round ever.
The startup’s services were founded in Sweden in 2018 and include measurement of CO2 and H2O impact for companies.
“Most people and companies understand that we must act against the climate crisis, but there is a big gap in understanding your impact, reducing it consistently over time and measuring the effects,” says Mathias Wikström, CEO and founder of Doconomy.
“Because innovation has to some extent caused the acceleration of climate change, innovation will be crucial in finding the solution.”
Johan Pihl, Doconomy’s foremost innovation officer and co-founder, says that Doconomy’s user base today reaches 360 million users in 19 countries, through partnerships with Klarna, the Nordic bank Nordea and global banks such as Standard Chartered. He says that nudging small changes in behavior into everyday actions has a powerful impact.
“Because innovation has to some extent caused the acceleration of climate change, innovation will be crucial in finding the solution,” says Phil. “At Doconomy, we are undeniably optimistic and believe that with the right tools, we can achieve a rapid and effective shift towards a more sustainable future together.”
Datia
Many companies skate on thin and melted ice when it comes to regulating climate change. But often they have data to help – they just do not use it.
Enter Datia, a Stockholm-based data platform for sustainable financing. Started was founded in 2019 and works together with investors and companies to automate their sustainability data and crush the numbers into something concrete they can turn into goals.
“The exponential increase in demand from both customers and regulators is creating a need for a new set of tools for investors,” a Datia spokesman told Sifted. “We help investors both follow the rules and increase their positive effect.”
Environmental, social and governance factors (ESGs) are playing an increasing role in mergers and acquisitions, and € 1.1 tn was invested in European funds with an ESG slope in 2020. This is a golden opportunity for start-ups that makes it easy to measure ESG for companies.
“The exponential increase in demand from both customers and regulators creates a need for a new set of tools for investors.”
Trine
In today’s world, there are investments, and then there are sustainable investments. Swedish startup Trine wants a future where there are good, sustainable investments and bad investments – and nothing in between.
The company enables its customers to invest in solar energy in emerging markets such as South Africa, Kenya, Ghana and Rwanda.
“At a time when large banks are still financing fossil fuel projects and measures need to be taken to limit global warming, the financial system must act as a catalyst for change and only move capital to sustainable operations,” he said. Sam Manaberi, Trine’s CEO and founder. “Trine makes it easy for individuals and companies to invest in solar energy in emerging markets.”
“The financial system needs to act as a catalyst for change and move capital to sustainable business only.”
Trine says it has almost invested EUR 60 million in clean energy to date, including projects such as 2016 Christmas present campaign, where people could buy sun coupons as gifts.
Normative
Keeps the earth’s temperature down for the next few decades depends on about measuring and limiting our emissions.
To keep track of them, the Swedish startup Normative says that it is “the world’s first carbon dioxide accounting engine”, which helps companies calculate their carbon dioxide emissions – including indirect emissions from supply chains.
“Normatives make it easier for companies to reach zero,” says Kristian Rönn, Normatives’ CEO and founder. “Our carbon dioxide accounting engine gives you control over your carbon emissions, highlights your hotspots for emissions and suggests initiatives to eliminate them. ”
This month, start announced investments of EUR 10 million from some of Europe’s largest climate funds.
Green assets wallet
Another data-led start, Green Assets Wallet is an independent platform for financial impact and hosts impact data from above 200 labeled bond issuers such as energy suppliers, real estate companies and financial institutions.
It started as an innovation project under Stockholm Green Digital Finance (SGDF), an initiative that aimed to accelerate green financing and investments in Sweden, but it decided to spin out on its own in 2020 after lots of investors’ interest.
Fintech participated in Mastercards Lighthouse open innovation programs, and has recently been chosen to be part of the Bonfire accelerator, a joint program run by PwC and Findec, a hub that aims to strengthen Sweden’s fintech ecosystem and took over SGDF last year.
“Findec’s mission is to promote collaboration in the fintech sector and support its members,” says Mats Holmfeldt, Findec’s chairman and founder. “Taking the lead for SGDF was completely logical because there has been a growing number of fintechs in the green area in Sweden.”
What will be the next green fintech?
Do you want to learn more about start-ups that make the fintech sector green and how Swedish and British fintechs lead the fee?
Act for Impact days is a series of digital and physical events held by Business Sweden from June to December. Each event will focus on a specific technology theme, from green funding to mobility innovations.
Read more about Act for Impact here, and stay tuned for more information on the next event.