Launched on March 5, 2024, this project aims to inspire high-growth FinTech companies—especially those that have completed seed or series A funding—to demonstrate how their cutting-edge solutions may improve the environmental, social, and governance (ESG) landscape. Notably, the incorporation of Morningstar statistics into these technologies is emphasized, utilizing Open Data, APIs, and Artificial Intelligence (AI) to promote sustainable finance.

This project, which will be featured at the Morningstar Investment Conference on May 1st, highlights the increasing need for advising firms, wealth managers, and regulatory authorities such as the Financial Conduct Authority (FCA) to shift towards open and uniform ESG procedures. The action attempts to promote trust in sustainable investments and combat "greenwashing." PIMFA last year highlighted research that sheds light on the growing opportunities and difficulties in the ESG data market. It also emphasizes the critical role that cutting-edge technology plays in improving the quality of climate-related disclosures and the integration of ESG practices in the financial services industry.

Over the past year, Morningstar and PIMFA WealthTech have worked together to address important issues in the wealth management and advice industry through a series of Tech Sprints. In accordance with the Consumer Duty rules, these efforts are focused on improving customer-centric technologies to satisfy the changing requirements of wealth managers and enabling effective client onboarding, profiling, and experiences.

In order to better serve their clients and foster more confidence in sustainable investments, Richard Adler, Executive Director of PIMFA WealthTech, highlights the crucial role that technology plays in complying with FCA sustainability disclosure standards and investment labels policy. In line with this sentiment, Anastasia Georgiou, Director of Client Solutions, Adviser Segment, EMEA at Morningstar, emphasizes the partnership's objective of promoting creative solutions to the problem of managing large amounts of ESG data for correct reporting and disclosures.

As this project takes shape, it is a turning point for the FinTech industry, demonstrating how technology can transform sustainable finance and ESG while keeping the sector at the forefront of moral and responsible investing.