Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: ESG, Financial Inclusion, Sustainable Finance
Solid World Unveils CRISP: Risk Assessment Framework and Tool For Carbon Forwards
Solid World | Steve Stenver | May 4, 2023
Image: Solid World
For over a year, Solid World’s team of climate scientists and technology experts have been developing a groundbreaking framework that is set to revolutionize the way forward carbon credit deals are evaluated within the rapidly growing Voluntary Carbon Market (VCM).
This framework is called CRISP (Carbon Risk Identification and Scoring Principles).
What is CRISP?
CRISP is an innovative carbon risk assessment tool, licensed under Creative Commons. It provides a comprehensive framework for understanding and quantifying the major factors contributing to the non-delivery of carbon credit units. By examining these crucial risk factors, CRISP empowers all stakeholders to make informed decisions and more effectively support global climate action initiatives.
See: A conversation with Catherine McKenna former Minister of the Environment and Climate Change: Fighting greenwashing
Solid World’s protocol delivers advanced payments to climate projects and provides a detailed risk rating framework associated with forward financing. Recognizing the imperative of transparency and collaboration in combating climate change, Solid World is releasing this framework as a public good. As a result, carbon projects, financiers, and sustainability teams everywhere can assess their risks with greater confidence.
Understanding the Risk Factors
CRISP’s approach to risk assessment is comprehensive and multifaceted. It encompasses:
- Carbon Yield Risk: Estimates the likelihood of credit yield based on scenario modeling (realistic and optimistic predictions). Improved accuracy through remote sensing, up-to-date data, and in-depth research.
- Climate Catastrophe Risk: Utilizes proprietary climate models to estimate the probability of climate-related events affecting project outcomes.
- Policy and Legal Risk: Assesses risks at the national/jurisdiction and project levels using pre-set indicators to gauge the strength of legal and policy environments.
- Financial Risk: Estimates vintage-specific financial risk using complete data (holistic financial models) or limited data (break-even year and yield models) methods, depending on data availability.
- Project Developer Risk: Analyzes the strength of project developers using standard indicators, such as developer experience, project team strength, and project network strength.
The framework then calculates net forward risk scores based on the weighted sum of these factors. These scores are categorized into ratings ranging from AAA (prime) to D (junk), to help Solid World make informed decisions.
FFCON23 Video: Harnessing the Power of DeFi to Tackle Climate Change: A New Era of Sustainable Finance
Paul Young of Kita, a renowned carbon insurance company:
As the sector continues to address the urgent need for carbon removal, new risk frameworks are essential in providing the necessary transparency and consistency in reporting on delivery risk. This will help ensure that we are making informed decisions and financing the projects that have the greatest potential for success
More information about CRISP --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Largest Early-Stage Fintech Fund for Women-led Companies: Anthemis’ Female Innovators Lab
Anthemis | Apr 27, 2023
Visa and BMO join Barclays and Aviva as Investors in FIL
- Anthemis, a specialist asset manager that creates value from driving financial systems change, today announced additional investments from institutions including Visa and BMO for its Female Innovators Lab (FIL) Fund.
- Anchored by Barclays, with investment from Aviva, the fund now totals $50 million, making it the largest early-stage fintech fund focused on female founders. With this latest raise, the Fund will invest in additional early-stage companies and continue its focus on designing, sourcing, and scaling female-founded embedded finance startups.
- Launched in 2019 and led by Anthemis’ Global Head of Venture Studio, Katie Palencsar, the FIL Fund actively invests in women-led startups across North America, UK and Europe.
- One of the earliest asset managers to establish a diversity and inclusion mandate, Anthemis is uniquely suited to lead FIL.
- Women account for 69% of the people across investments
- 48% of portfolio company founders are women or people of color
- 58% of all employees at Anthemis are women
See:
Venture Capitalists Dislike Women More Than They Like Profit
Work Trends: Employees Feel the Opposite but the ‘Data doesn’t lie’ | Women Leaving Companies at Highest Rate Ever
Andrew Harrison, Head of U.S. Partnerships at BMO:
BMO’s investment in Anthemis’ Female Innovators Lab Fund is aligned with our Zero Barriers to Inclusion strategy, which includes creating economic progress and removing barriers to the inclusion of women and women-owned businesses everywhere.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Survey Results: Unlocking Green Growth Opportunities for Retail Banks
McKinsey | William Edwards, Ritesh Jain, Marie-Claude Nadeau, Charlotte Soehner, and Daniel Stephens | Apr 21, 2023
Image: McKinsey & Company
A recent survey by McKinsey shows there is a meaningful and growing appetite among American consumers for climate-linked financial products
- BUT consumers need further education and advice to make informed buying decisions, and providers need to differentiate themselves from the pack. Generic environmental, social, and governance (ESG) offers will not be enough to win in this changing landscape. Will financial institutions provide the education consumers require and the differentiated offerings needed to win this space?
See: Mark Carney’s Climate Alliance Provides Billions for New Fossil Fuel Projects
- 1. Demand for green financial products is both strong and broad—and is not limited to a niche segment
- Nearly 40 percent of US consumers report interest in enrolling in a climate-linked financial product (Exhibit 1).
- Of the interested consumers, the majority see this as a potentially major change in behavior and two in three would allocate more than 40 percent of their savings or monthly credit card spending to a green retail banking product.
- Green banking products are attractive to consumers across income levels and community types
- Interest appears consistent across levels of household savings
- 2. Green offerings are a business opportunity for financial institutions, not a concession
- Research shows that consumers are willing to pay more for climate-linked financial products if they create measurable or demonstrable impact.
- For example, up to 40% of consumers said they would choose a green savings account with a 20% lower annual percentage yield (APY) than a traditional savings account.
- 25% of consumers said they would take an account with a 60% lower APY. This trend also applies to climate-linked investments that offer specific, actionable products that connect to both an investment thesis and a thesis of societal benefit.
- Research shows that consumers are willing to pay more for climate-linked financial products if they create measurable or demonstrable impact.
- 3. Consumers are eager for advice and support from their financial partners
- Banks are well positioned to fill this gap, as two-thirds of consumers prefer to partner with their bank for financing a solar panel purchase rather than directly with a solar panel installation company.
- Consumers trust banks for their perceived expertise, trustworthiness, existing relationships, and because sustainable decisions are also investment decisions that require financial analysis.
FFCON23 Expert perspectives on Carbon markets: Revolutionizing Finance for a Sustainable Future
- 4. Consumers need to be educated—they may not yet have strong perspectives about which green offerings best suit their needs
- Consumer understanding of climate-linked financial products is low, and financial institutions will need to educate them on the value proposition of their offerings. In a survey, consumer responses to four different value propositions associated with a green savings account were almost evenly split, indicating a lack of understanding. The same phenomenon repeated itself with respect to investment products.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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The Rise of Impact Investing in Tech Startups: Aligning Profit with Purpose
April 25, 2023
Image: Pexels/Marek Levak
The world of investing has evolved remarkably in the past few years. One of the most notable trends is the rise of impact investing in tech startups. This approach combines the traditional focus on financial returns with a commitment to social and environmental impact. As a result, investors are increasingly looking to support companies that align profit with purpose. In this article, we will explore the factors driving this trend, as well as how it is transforming the tech startup landscape.
Growing Awareness of Global Challenges:
One of the main drivers behind the growth of impact investing is the increasing awareness of global challenges, such as climate change, poverty, and inequality. Investors have started to recognize that financial success alone is not enough and that businesses must also contribute positively to society and the environment. As a result, many investors are seeking out tech startups that develop innovative solutions to these challenges, believing that these companies will generate both financial and societal returns.
Millennial Investors Leading The Charge:
Millennials are playing a significant role in the rise of impact investing, especially in Canada. As they inherit wealth from previous generations and gain more influence in the financial world, their values and priorities reshape investment strategies. Studies show that millennials are more likely than older generations to prioritize social and environmental issues when making investment decisions. Consequently, their interest in tech startups that align profit with purpose fuels the growth of impact investing.
Integration of ESG factors:
Environmental, Social, and Governance (ESG) factors are becoming increasingly important for investors. Many are now integrating these factors into their investment strategies to manage risk and identify opportunities for long-term value creation. Tech startups that demonstrate strong ESG performance are, therefore, more likely to attract impact investors looking for both financial returns and positive societal impact.
An Unconventional Example of Impact Investing:
Title loans, a type of secured loan where borrowers use their vehicle title as collateral, have gained a bad reputation for their high-interest rates and predatory lending practices. However, some impact investors are exploring opportunities to transform the loan titles industry by supporting tech startups that promote responsible lending practices and financial inclusion. These startups aim to provide affordable, transparent, and accessible loan options to underserved communities, aligning profit with purpose and contributing to social impact.
Innovative Business Models and Technologies:
Another factor that drives the rise of impact investing is the emergence of innovative business models and technologies in the tech startup space. These companies leverage cutting-edge solutions like artificial intelligence, blockchain, and renewable energy to tackle pressing social and environmental issues. By investing in these startups, impact investors can support the development and scaling of technologies that have the potential to transform industries and create lasting positive change.
Measuring Impact:
Measuring the social and environmental impact of investments has historically been challenging. However, the development of standardized frameworks and metrics, such as the Global Impact Investing Network's (GIIN) IRIS+ system, has made it easier for investors to track and compare the impact of their investments. It increased transparency and accountability, further encouraging the growth of impact investing in tech startups.
Conclusion:
The rise of impact investing in tech startups reflects a growing recognition of the importance of aligning profit with purpose. Driven by increasing awareness of global challenges, millennial investors, ESG integration, and innovative business models, this trend is transforming the tech startup landscape.
FFCON23 On-demand: Regenerate Earth, John Ellison, ReFi Source
As more investors embrace impact investing, they are not only supporting the development of solutions to pressing social and environmental issues but also paving the way for a more sustainable and inclusive future.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Partner Webinar Apr 19: Data and AI driving diversity in SME Lending
SME Finance Forum | April 18, 2023
Considerable cultural, economic, and regulatory differences exist around the world that affect accessibility to capital and in particular the opportunity for women and those underserved to launch and grow thriving businesses. Therefore, it should be no surprise that effective solutions to overcome these challenges are best formulated with particular attention to these differences that are unique to each country, lender, borrowers, and loan type.
While the challenges may be unique for each lender, there is good news. The process for diagnosis and treatment is highly codified, scientific, reproducible to virtually any market and lender in a way that delivers high performance and regulatory compliance.
Webinar
Date: April 19, 2023
Time: 9:00 to 10:00 EDT
Register
See: Board Diversity and Inclusion: 50-30 Challenge
Moderator and speakers:
- Elaine MacEachern, Sr. Financial Sector Specialist at World Bank Group
- Patrick Reily, CEO - Uplinq Financial Technologies
- Mario Schlener, Leader Financial Services Risk Management (FSRM) Practice and Enterprise Risk Strategy Canada and Global FS Risk Technology/Alliance/Innovation Lead - Ernst & Young
- Ayo Olojede, Group Head, Emerging Businesses - Access Bank
- Mehi Mirpourian, Data Science Manager - Women's World Banking
More information --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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CSA Seeking Comments on Proposed Changes to Governance and Disclosure Practices Around Diversity
CSA | Release | Apr 13, 2023
Image: Unsplash/Joel Muniz
The Canadian Securities Administrators (CSA) is seeking public comment on proposed amendments to corporate governance disclosure rules and policy relating to the director nomination process, board renewal and diversity.
- They would require disclosure on aspects of diversity beyond the representation of women, while retaining the current disclosure requirements with respect to women. In addition, the CSA is proposing changes to the corporate governance policy that would enhance the existing corporate governance guidelines relating to the director nomination process and introduce guidelines regarding board renewal and diversity.
- The main objectives of the proposals are to:
- Increase transparency about diversity, including diversity beyond women, on boards and in executive officer positions;
- Provide investors with decision-useful information that enables them to better understand how diversity ties into an issuer’s strategic decisions; and,
- Provide guidance to issuers on corporate governance practices related to board nominations, board renewal and diversity.
McKinsey Report on Gender Diversity in Canada
CVCA Report: Diversity improving but inclusion gap threatens progress
Board Diversity and Inclusion: 50-30 Challenge
- The proposals are contained in a Notice and Request for Comment on amendments to Form 58-101F1 Corporate Governance Disclosure of National Instrument 58-101 Disclosure of Corporate Governance Practices and proposed changes to National Policy 58-201 Corporate Governance Guidelines pertaining to director nomination process, board renewal and diversity.
- There is a 90-day comment period, and stakeholders are invited to provide comments in writing on or before July 12, 2023.
Continue to view the original release --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Decarbonizing Crypto’s Energy Consumption Problem
RMI | Samuel Huestis | Jan 30, 2023
Image: Unsplash/israel palacio
Cryptocurrency has an energy consumption problem. Bitcoin alone is estimated to consume 127 terawatt-hours (TWh) a year — more than many countries, including Norway.
- Decarbonizing the crypto industry thus remains essential to achieving a safe climate future. Yet, while RMI is proud to have played a role in initial decarbonization efforts in the crypto industry, moving forward, we will focus on decarbonizing the grid rather than crypto transactions. In this article, we reflect on the state of the crypto industry: what work has been done so far, the challenges of decarbonizing crypto, and how RMI will continue to pursue this goal as part of our larger effort to decarbonize global supply chains.
See: Canadian Bitcoin Mining 2022 Recap and Outlook
- Progress to date:
- As exorbitant electricity consumption from crypto mining became a public concern, RMI’s first step was to act as a co-convener of the Crypto Climate Accord (CCA), along with our partners Energy Web, the Alliance for Innovative Regulation (AIR), and the World Economic Forum.
- The CCA serves as a “private sector-led initiative focused on decarbonizing the cryptocurrency and blockchain industry,” where solutions and technologies for crypto decarbonization are created collaboratively among players across the web3 and crypto space.
- Proof of work energy usage: Lawmakers are increasingly concerned about the energy usage and environmental impact of Bitcoin mining. Bitcoin's proof-of-work mining algorithm requires large amounts of energy.
- In contrast, Ethereum's proof-of-stake consensus mechanism is far less energy-intensive and has reduced its electrical usage by over 99.9 percent.
- To reduce the emissions impact of the crypto industry, the "Change the Code, Not the Climate" campaign by Greenpeace and the Environmental Working Group aims to motivate Bitcoin to move away from proof-of-work to a less energy-intensive consensus mechanism.
- This would also mitigate Bitcoin's significant e-waste problem.
- Price volatility: The price volatility associated with Bitcoin and other cryptocurrencies is a cause for concern as it affects the use of clean energy.
- When Bitcoin prices are high, miners may use clean electricity. But when prices drop, they seek the cheapest electricity, which may not be clean. Miners spend a majority of their income on electricity.
- There are also concerns about relying on Bitcoin miners for demand response on power grids, as they may not prioritize limiting power usage when prices are high, putting increased pressure on the grid.
See: Bitcoin Mining Council Protest ‘Misleading’ Letter Sent to EPA
- Electricity procurement: Bitcoin mining has a significant carbon footprint, and it is crucial that it be powered by new renewable energy sources rather than drawing from existing ones.
- Bitcoin miners must contract directly with renewable energy providers to drive further renewable energy generation.
- To ensure that the energy used is clean, sustainable, and additional, the Renewable Energy (RE) Emissions Score has been developed by RMI. This score allows companies, including Bitcoin miners, to make quantifiable claims about renewable energy use and investment and prioritize investment in high emissions areas and low-cost renewable projects.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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