The founder of the software engineering firm Endjin, Matthew Adams, has drawn an intriguing parallel between the data protocols necessary for achieving sustainable goals in finance and the regulations surrounding open banking. In a recent interview with Finextra TV, he emphasized the importance of product and service data availability while cautioning against overly complex taxonomies governing every aspect of the supply chain.
Adams noted that, similar to the evolution of open banking, which initially faced imposition but is now recognized as a valuable opportunity for data enhancement, the financial sector must adopt a similar mindset regarding sustainability. “We need to embrace an approach that enhances value across entire value chains,” he stated.
Adams elaborated that just as open banking enabled participants to incorporate their unique commercial identities, a reimagined focus on sustainability will empower companies to view it as more than merely a regulatory obligation. “With open banking, we saw a dynamic where governmental mandates created room for innovation and commercial prospects. I believe sustainable finance can foster the same environment,” he asserted.
He highlighted the necessity of identifying influential players within the value chain who can navigate regulatory aspects while simultaneously illuminating avenues for innovation. When asked about the feasibility of aligning data collection with sustainability goals, Adams remarked on the unprecedented access to data: “We now have data available at any required level of security, fidelity, and scale, which serves as a foundation for progress.”
Adams further stressed the technological industry’s readiness to embrace an environment of openness, APIs, and interconnected third-party systems, stating, “The mindset and technology are in place; now we must determine how to leverage them effectively.”
Endjin, recognized as a Microsoft Most Valued Partner, has actively collaborated with Oceanmind, a company specializing in satellite data applications to combat illegal fishing. Oceanmind’s services aid governments and the seafood supply chain in enforcing compliance with fishing regulations.
Nick Wise, CEO of Oceanmind, shared insights at the inaugural Sustainable Finance Live workshop in December 2019, where experts convened to discuss sustainability in supply chains and green bonds in commercial banking. A second workshop focusing on investment and asset management is scheduled for March 23rd in London.