Startup Spotlight: How Singapore-Based GreenFi's Automated Risk Management Of Green Financing Aids The UAE's Sustainability Ambitions A whopping $5 billion are spent by corporations worldwide in just managing ESG risks and analytics- but GreenFi has found a way to fully automate that process.

This article is part of an ongoing series covering startups that have been a part of the Mohammed Bin Rashid Innovation Fund (MBRIF) accelerator program.

If you haven't heard, green financing is on the rise! Look up the term on the internet and you will find multiple definitions, all of which, essentially, highlight the same thing: that it is a type of financing that is solely catered towards projects that advance environment, social, and governance (ESG) and other sustainability goals. In fact, a 2020 study by the International Monetary Fund notes green financing as a critical sector in "the fight against climate change by supporting reductions in climate change risk and mitigating the impact of adverse climate events." But Barun Chandran, co-founder of GreenFi, a Singapore-headquartered artificial intelligence (AI)-enabled ESG due-diligence and risk management platform, notes that there is a glaring issue that persists in this space.

"Banks, financial institutions and corporates are raising the issuance of green financing and ESG-linked loans but struggle with complex unstructured ESG data, weak ESG indicators and unreliable rating systems which makes them susceptible to greenwashing," Chandran says. "Most institutions rely on manual ESG data management, compliance reporting and assurance processes to make critical business decisions. Assets worth US$130 trillion that are managed by financial institutions are under climate change risk. The global sustainable financing market [as per US-based market research company Global Markets Insights] is valued at $5.4 trillion, growing at a compound annual growth rate (CAGR) of 22%. At the same time, ESG regulations are evolving for climate risks and risk management. This demands a critical need of automating ESG risk management at scale."

Related: GreenFi

Located at the heart of South East Asia's green financing hub Singapore (multiple reports show that the nation accounts for over 50% of green financing activity in the region), GreenFi was launched in 2022. As per Chandran, a whopping $5 billion are spent by corporations worldwide in just managing ESG risks and analytics- but GreenFi has found a way to fully automate that process. "We leverage artificial intelligence (AI), natural language processing (NLP), large language models (LLM), and machine learning (ML) to build vertical AI applications that automate manual risk management processes," Chandran explains. "This Vertical AI solution is further deployed for contextual decision intelligence and recommender systems in challenging use-cases like ESG regulations, sustainability, supply chain, green financing, financial fraud, etc. GreenFi AI is also a no-code, plug-and-play platform which thus enhances efficiency and cost savings by eliminating manual data engineering processes, enabling swift decision-making, and ensuring sustainable growth with one-tenth the price of traditional solutions of less use-case parity."

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With this software as a service (SaaS) model, GreenFi's offerings can be used across a wide range of financial institutions. "When a bank is deploying commercial lending (loans, investments, bonds), instead of using proxy ratings and manual processes, they can automate due diligence to qualify sustainable financing deals and mitigate compliance risks," Chandran explains. "Similarly, a corporate business can automate ESG risk assessments and sustainability monitoring to de-risk their supply chains and grow their sustainable financing accessibility. With GreenFi AI software being a SaaS-based platform, customers access our software for a monthly subscription user fee.

Already, the startup has a considerable customer base across ASEAN, India, MENA, as well as Europe. "The company plans to expand to North America markets later this year," Chandran shares. "GreenFi has also been selected as finalist in G20 Tech Sprint [a global long-form hackathon series] and the UN Climate Tech Accelerator. We're currently angel funded with a team of 16 members based in five countries. We have a solid group of tech and climate experts who interact regularly with our customers to understand their business challenges, validate use cases and co-innovate."

Amid all these endeavors, GreenFi was introduced to the UAE through the country's hosting of the 28th edition of the United Nations Climate Change Conference (COP28), which eventually led to its participation in the MBRIF Innovation Accelerator as well. As such, Chandran hopes that this is a move that will only enhance his startup's global ambitions. "We attended COP28 in Dubai and it was a huge opportunity for us to learn about regional initiatives in sustainability," he says. "On the other hand, the MBRIF has been helping us to connect with industry experts, learn regional market dynamics and expand in the MENA region. Through local partnerships and awareness programs, we are now working towards establishing GreenFi [in the region] to help businesses become ESG compliant and transition to sustainable operations!"