Way Forward to a Greener and Smarter Financial Ecosystem

Abstract

The move towards a more sustainable and technologically advanced modern financial framework will remain pending the deliberate overlap of sustainability, digital advancement and effective stewardship. All financial institutions across the world are facing push and pull problems of bringing their activities into alignment with net-zero commitments and, at the same time, applying expanding technologies like AI, blockchain, cloud computing, and big data to construct resilient, inclusive and low-carbon infrastructures. The first pillar is enhancing the pace of implementation of the ESG factors into core investment choices, based on the obligatory disclosure of climate risks, the formalization of the green taxonomies, including the European Union and their nascent models in India, and instantaneous carbon counts, which is possible with the use of AI-based analytics. Blockchain and distributed-ledger technologies can provide a transparent, resistant to tampering, monitoring of green bonds, carbon credits and sustainable supply chains, therefore overcoming the risks of greenwashing.