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Fintech companies targeted by climate skeptics secure $37 million investment from UBS, CommerzVentures

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Swedish climate-focused financial technology startup, Doconomy, has raised 34 million euros in a Series B financing round co-led by UBS Next and CommerzVentures. The company offers tools to help bank customers measure the carbon footprint of their everyday spending. In addition to UBS and CommerzVentures, S&P Global has also come on board as a new investor. Doconomy plans to use this fresh cash to drive expansion into North America and roll out new products.

In partnership with Boston Consulting Group, Mastercard, and the United Nations Framework Convention on Climate Change, Doconomy helps users calculate the climate cost associated with financial transactions. The company’s AIand Index is a cloud-based service used by over 100 financial institutions in more than 40 countries. CEO and co-founder Mathias Wikstrom expressed the company’s vision of enabling banks worldwide to engage their clients in ESG (environmental, social, and governance) initiatives.

The company’s growth has not been without challenges, as it recently faced attacks from right-wing commentator Jordan Peterson and his followers. Peterson labeled Doconomy as part of a “green tyranny,” questioning the validity of climate change. However, Wikstrom remains focused on educating people about the importance of addressing climate concerns, particularly in the face of recent natural disasters such as floods and wildfires.

Investors have taken an interest in climate fintech companies like Doconomy as governments worldwide push for ESG targets and carbon emission reductions. UBS Chief Sustainability Officer, Michael Baldinger, highlighted the importance of fostering innovation to provide clients with actionable insights for informed investment decisions. Doconomy’s partnership with UBS and Commerzbank demonstrates a shared commitment to addressing climate issues through financial technology solutions.

Doconomy’s recent acquisition of Dreams Technology, a platform focused on digital engagement and financial wellbeing, further expands the company’s offerings. The company’s valuation has remained stable, despite challenges from climate skeptics. Wikstrom is optimistic about the future of climate-focused financial technology and remains dedicated to educating the public about the urgent need for action in the face of climate change.

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