Swedish climate-focused financial technology startup Doconomy recently raised 34 million euros in a Series B financing round co-led by UBS Next and CommerzVentures. The firm offers tools to help bank customers measure the carbon footprint of their spending, working alongside partners such as Boston Consulting Group and Mastercard. The AIand Index, a cloud-based service, allows banks to convert transactions into CO2 footprints. Doconomy plans to use the funding to expand into North America and develop new products to engage clients in environmental, social, and governance (ESG) initiatives.
Doconomy’s growth story has faced challenges, including attacks from right-wing commentator Jordan Peterson, who criticized the firm for aligning with what he described as “green tyranny.” Peterson, a skeptic of climate change, received backlash for his remarks, as climate scientists argue that rising greenhouse gas emissions have negative impacts. Doconomy’s CEO, Mathias Wikstrom, expressed the need for educating individuals on climate issues, as fear and frustration can lead to protests and violence. He hopes that continued opposition from skeptics like Peterson will eventually lose credibility in the face of worsening climate events.
The acquisition of Dreams Technology in February 2023 helped Doconomy enhance customer engagement and financial wellbeing using behavioral science. Despite past criticisms, the firm’s valuation remains stable from its Series A round, which saw investments from Citi Ventures, Mastercard, and Ingka. Doconomy’s partnership with S&P Global, as well as leading European banks like UBS and Commerzbank, reflects a growing trend in climate fintech investment. The company aims to provide clients with actionable insights to make informed investment decisions and achieve ESG targets.
The politicization of climate change has become a volatile issue, with skeptics like Jordan Peterson dismissing the urgency of reducing carbon emissions. However, increased global awareness of climate-related disasters, such as floods and wildfires, underscores the need for action to address climate change. Doconomy’s focus on helping banks and consumers measure their environmental impact highlights the growing importance of sustainability in the financial sector. By engaging clients in ESG initiatives, the company aims to drive positive change and combat climate skepticism from various quarters.
Investors, such as UBS, view climate fintech as a strategic area of investment to support sustainable practices and reduce carbon emissions. By providing data and actionable insights, financial institutions can help clients align their investments with ESG principles. Doconomy’s collaboration with leading banks and organizations underscores the significance of climate-focused technology in addressing global environmental challenges. The company’s commitment to expanding its reach and developing new products reflects a growing demand for tools that enable individuals and businesses to make informed decisions to combat climate change effectively.
