EdTech Insight – Fintech targeted by climate skeptics banks $37 million from likes of UBS, CommerzVentures

by | May 31, 2024 | CNBC, News & Insights

Executive Summary and Main Points

This summary focuses on the Swedish climate-focused fintech startup Doconomy, which recently raised €34 million in a Series B financing round led by UBS Next and CommerzVentures. Specializing in ecological analytics for financial transactions, Doconomy partners with global entities to compute financial transactions’ climate costs. The firm leverages artificial intelligence through its AIand Index, thus enabling customers to comprehend the CO2 impact of their spending. Doconomy’s recent acquisition of Dreams Technology highlights its commitment to integrate behavioral science to improve digital engagement and financial well-being.

Potential Impact in the Education Sector

Doconomy’s innovations could significantly influence the realms of Further Education, Higher Education, and Micro-credentialing by embedding a culture of sustainability in financial education. This investment from leading banks indicates a strategic shift towards sustainability-focused financial services, potentially shaping curriculum development and promoting environmental, social, and governance (ESG) values in academic and professional education. Strategic partnerships, like those Doconomy is forming, might inspire similar collaborations in academia, fostering digitalization and social responsibility.

Potential Applicability in the Education Sector

Applying AI and digital tools like Doconomy’s AIand Index can transform educational institutions, enabling them to track and manage their carbon footprint. Such applications can be further incorporated into global education systems, promoting data-driven sustainability practices. Institutions can also use similar tools to equip students with real-world skills in ESG and sustainability analytics, positioning them effectively for future job markets that prioritize climate-conscious solutions.

Criticism and Potential Shortfalls

While promising on the sustainability front, Doconomy’s approach faces criticism from climate change skeptics, as exemplified by the opposition from Jordan Peterson. The politicization of climate initiatives can potentially undermine their widespread acceptance and impact. Ethical and cultural implications, such as biases in AI algorithms or the inadvertent promotion of eco-anxiety, could also pose challenges. Comparative case studies from other sectors can provide insights into handling such criticisms effectively while maintaining ethical standards.

Actionable Recommendations

To implement or explore these technologies, education leadership should consider partnering with fintech firms specializing in ESG analytics for practical training and research applications. Such collaborations could include joint sustainability projects, integration of ESG competencies in curricula, and strategic use of digital platforms for enhanced learning experiences. By doing so, international education can lead by example, adopting advanced digital tools for sustainable operations and equipping students for the green economy.

Source article: https://www.cnbc.com/2024/05/30/ubs-backs-37-million-round-for-climate-fintech-startup-doconomy.html