Computational Risk Management in ESG-Driven FinTech Ecosystems

Abstract

The integration of ESG (Environmental, Social, and Governance) principles with FinTech is reshaping modern finance through technologies like blockchain, digital wallets, robo-advisors, and DeFi. This work explores how computational tools such as machine learning, data analytics, and simulation modelling enhance ESG risk management in digital finance. It addresses cybersecurity, regulatory compliance, AI ethics, and financial resilience, linking ESG issues to practical risk control strategies. Real-time tracking of ESG indicators and transparent reporting via blockchain are emphasized. Techniques like ESG scoring models, heatmaps, and dashboards assist in monitoring sustainability and performance. It also examines emerging risks such as greenwashing, data ethics, and decentralized finance vulnerabilities. The focus is on combining innovation, ethics, and sustainability to build a robust, risk-aware financial ecosystem. This approach is essential for aligning FinTech growth with responsible, long-term ESG goals.