Rise of sustainable finance practices: A peek into new carbon credit rewards initiative for users

Today, the environmentally mindful world that we inhabit, including the burgeoning number of conscientious consumers, demand companies to inculcate values which are both eco-conscious and truthful in their approach to sustainable practices. These aren’t fancy buzzwords anymore. Far from it. If there’s one thing the past few years has made us aware of, it’s this: that we’re all inter-connected and that we inhabit a living, breathing, pulsating planet with other sentient beings.

Hence, the fintech industry is one sector which has been increasingly honing in on sustainability practices as it recognises the pivotal role finance, tech and an eco-conscious approach can make in manifesting a greener future. See, in this day and age sustainable finance practices are becoming increasingly important, as companies aim to incorporate environmental, social, and governance (ESG) criteria into investment decisions and financial services. There are no two ways about it. Human conscience today does not, and will not allow, profit-making at the expense of earthly destruction.

Through innovative solutions and practices, a number of fintech companies are leading the way in promoting environmental awareness. For example, by emphasising the environmental impact of everyday financial transactions, fintech companies are helping individuals understand the importance of their actions in conserving the planet for future generations. This proactively consistent approach not only encourages sustainable practices but also highlights the weighty role that fintech can play in driving positive change for the environment and society as a whole.

But what makes a fintech company sustainable? To put it simply: A sustainable fintech business minimises adverse effects on the environment. Their operations encourage sustainable choices among customers while leading by example. It’s a domino effect. And to thrive, startup fintech companies simply must enter this budding, fast-changing financial ecosystem with conscientious business models.

Recently, TrustXPay (TXP), an upcoming digital finance platform (based out of London and Dubai) announced its partnership with Kyoto Network, a renowned global organisation at the forefront of environmental management and sustainability solutions. The partnership reveals a pioneering carbon credit rewards initiative for users of the TXP platform, which highlights a noteworthy breakthrough in sustainable finance.

So how does it work, and most importantly, what impact can this partnership have on the world at large? For one, TXP’s carbon credit offering is a move in the right direction towards encouraging sustainability in finance. By providing businesses and individuals alike with the means to purchase carbon credits, the platform inspires environmentally friendly practices — a much needed move in today’s world in the midst of ever-increasing climate-related disasters, melting ice caps and fears of further climate catastrophes.

Quite similar to airline miles schemes (where individuals receive free miles for each flight they embark upon), and other loyalty programmes, a TXP user can earn carbon credit offset rewards for every transaction they make through their TXP cards. This truly democratises the ability for customers to have a positive effect on climate change and represents an important game-changer.

Having founded TXP in 2023, Shahid Munir, a seasoned young entrepreneur based in Dubai (and UK), states that his partnership with the Kyoto Network stands as a positive step towards combining sustainability in an individual’s everyday transactions. “We're excited to empower our users with the ability to contribute to carbon offsetting efforts while enjoying the benefits of our platform. Collaborating with the Kyoto Network is not just about offering a rewards programme; it's about making a meaningful impact on our environment and society,” he says.

A self-starter who began his career at the tender age of 15 during his early years in UK, Munir remains driven by philanthropy, supporting the overlooked with a deep commitment to being mindful from the very beginning of all his ventures. “When we were first approached by Shahid and his team, we had no hesitation in partnering to offer TXP’s customers the ability to offset their carbon footprint and help safeguard the future of our planet,” said Sheraz Malik, founder and CEO of the Kyoto Network.

In a time where environmentally-conscious practices for businesses and the public are the need of the hour, the fintech industry plays a crucial role in sustainability, which can go a long way in creating real, visceral impact in the world at large.

Published in: Khaleej Times, March 2024.

March 4, 2024