HeavyFinance underlines importance of transparent data in impact investing
HeavyFinance has underlined the importance of impact investing “in the face of unprecedented environmental challenges” and said that the removal of CO2 emissions is essential.
The European peer-to-peer lending platform specialises in agricultural finance and recently expanded into “green loans”, which encourage eco-friendly farming.
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It heralded the importance of transparency in the landscape of environmental, social and governance (ESG) frameworks, adding that “uniform methods for measuring impact are essential to make data accessible and understandable, ensuring that the effectiveness of sustainability initiatives can be accurately assessed.”
“For ESG investors seeking to enact genuine change and offset their carbon emissions, easily accessible and reliable data is indispensable,” the platform said in a blog post on its website. “Measuring impact equips these investors with the evidence needed to drive their decision-making processes. Reliable data not only empowers investors to hold companies accountable but also enables them to focus their resources where they can make the most significant positive change.”
HeavyFinance also stated that reducing CO2 emissions is no longer enough. “This is why genuine practice of CO2 removal is essential,” it said. “This is done through practices that generate carbon credits and demand meticulous implementation and consistent monitoring.”
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HeavyFinance launched its “green loans” earlier this year, enabling farmers to earn carbon credits based on their emissions, which can be sold to traders or other companies.
Investors earn returns from the loan itself and the sale price of the carbon credit.
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“Generating high-quality carbon credits relies on robust practices and monitoring systems that guarantee credibility,” HeavyFinance said. “For instance, when using soil as the carbon sink, it is essential to employ regular soil sampling and personalised guidance for farmers to enhance soil health and carbon sequestration can contribute to both investor confidence and environmental preservation.
“Scientifically grounded approaches to soil management and carbon measurement not only ensure the credibility of carbon credits but also underscore transparency, accountability, and a continual commitment to process enhancement.”
HeavyFinance expects its green loan book to reach more than €5m (£4.3m) by the end of the year, as it targets growth in sustainable finance.
Darius Verseckas, co-founder and chief marketing officer of HeavyFinance, told Peer2Peer Finance News that the platform is in talks with institutional investors who are interested in supporting its green loans.
