ESG
Two fintechs addressed issues of climate change and sustainable finance: ESGnie from Singapore and Intensel from Hong Kong.
ESGnie provided one of the strongest presentations from the batch. It generates AI based on quantitative but unstructured data for accurate, quality analyses. Ultimately the fintech’s goal is broad, but it’s starting with ESG data, says CEO and co-founder Jiale Tan.
The AI makes sense of PDFs, PowerPoints and other formats with lots of data for ESG analysis and reporting. ESGnie helps source and extract data, standardizes and maps it, and provides outputs for benchmarking or investment decisions.
ESG remains a messy, fragmented space, so the industry certainly needs tools to put data into context so it can be treated intelligently. Tan says there is no risk of a chatbot-like “hallucination” or verbose gibberish because the AI’s insights are backed with quantitative data; and if it’s relying on qualitative inputs, the machine provides sources so users can double-check.
Intensel has emerged after three years of R&D to assess climate risk of individual buildings, anywhere in the world. It uses cloud computing and AI to incorporate real-estate risks into a financial analysis and risk-management review.
Ben Shum, CFO, says climate change is creating more severe and frequent weather events. Climate-related losses are going to increase, and listed companies will have to disclose their risks. Intensel helps them measure the damage, any losses, and better manage supply chains and portfolios. Ultimately a better understanding of a property’s risk will allow companies to mitigate risks from climate.
Corporates such as Jardines, real-estate specialists such as JLL, and exchanges such as Hong Kong Exchanges are piloting Intensel’s software.
Web3
Vaultavo is a Hong Kong startup that aims to provide a custody solution for digital assets that is secure, gives owners ready access to their assets, and promotes the blockchainy notion of self-custody.
Philip Meyer, CEO and co-founder, presented a physical plastic card, just like a credit card, but built with extra features, such as biometrics for onboarding and authorizing transactions. It also interfaces with other devices, through contactless networks, Bluetooth, and even a USBC port. Most important for self-custody is a secured element to hold private keys, which interfaces with an app.
The addressable market is still a work in progress: it’s to hold all those tokenized assets, NFTs, CBDCs and stablecoins. It’s piloting a treasury solution for the Red Cross, which has received donations in crypto, among other beta users. At some point, Meyer says, the fintech will look to enable EMV standards used by traditional card processors, so the Vaultavo card can also work as a TradFi credit or debit instrument.
The day after Meyer’s presentation, news emerged that Ledger, the most popular hardware stick for self-custody of crypto assets, may have some security backdoors that users weren’t aware of. Whether anyone can actually deliver a secure, accessible, and decentralized custody solution for digital assets remains an open question. Vaultavo is seeking to raise $15 million to grow its sales team and go after large-scale customers.
