Summary
The global challenge of CO2 emissions reduction and the massive need for energy consumption makes the need for sustainable finance highly urgent. Regulations are growing in the number of initiatives and pages of documents. The complexity to make sustainable finance possible is tremendous and exhausting for those who are affected directly or indirectly.
At the Swiss Fintech Fair 2022 in Zürich on 9th September, our CEO and founder Dr. Hans-Peter Güllich presented these challenges and also the solutions that we as Dydon AI see as decisive: Artificial Intelligence helps on one hand in dealing and handling the regulatory overflow, and on the other hand, we are lucky that nature is doing his part to support us, more about it in the article.
Swiss Fintech Fair 2022
The Swiss Fintech Fair is a yearly event organized by Swiss Fintech, Switzerland’s non-profit fintech association and community for fintech, entrepreneurship, and digitization.
One day of conferences, workshops, and meetings, with main event sponsor UBS, and by the other Swiss Fintech partners SIX, Visa, LexisNexis, and Innosuisse.
A special thanks to Christina Kehl, Urs Häusler, Thomas Brändle, and Gian Reto à Porta, for organizing this initiative and supporting local startups in creating synergies, joining forces, driving innovation, inspiration, and change in Switzerland.
As members of the Swiss Fintech, Dydon AI was glad to participate this year at the conference program of the Swiss Fintech Fair 2022 with the speech of our CEO and Founder Dr. Hans-Peter Güllich: “How on earth may AI handle the regulatory overflow in sustainable finance?”
Speech of Dr. Hans-Peter Güllich, CEO & Founder of Dydon AI
During the last years of Corona, there was a common misleading idea that CO2 emissions would have been reduced or slowed down and that the environmental goals would be much closer to reach. That was quite an illusion as the data of the Global Monitoring Laboratory (GML) of the National Oceanic and Atmospheric Administration (NOAA) show, a steady growth of CO2 emissions.
This together with the still low renewable energy production at global level, emphasizes the need of sustainable finance, expressed very well by the Paris Agreement in 2015 with the affirmation that controlling financial streams would be key to sustainability.
And if nature would not give us hand and absorbs up to 50% of all our emissions, there would not be a way out of the climate crisis. Due to the enormous demand in global energy, it will most likely not be possible to shift completely to renewable energy in a short period of time. The short time key to solve the climate crisis is to reduce emission by at least 50% which will lead to a breaking of the constant increase in carbon concentration in the atmosphere.
The Paris Agreement finds in recent years its clear and strongly regulated application with the EU Taxonomy, affecting as by now directly:
- financial institutions (banks, pension providers and other financial institutions + companies offering financial products inside the EU)
- companies with more than 500 employees (Large companies that are already required to provide a Non-Financial statement under the Non-Financial Reporting Directive NFRD)
- EU and Member States (The EU and the Member States, when setting measures, standards or labels for green financial products or green bonds)
… and indirectly all private customers of financial institutions.
Just think about the credit procedures for your renovating your house! Each single real estate project needs to be compliant with the EU Taxonomy.
And that’s not the only case: all the companies that have subsidiaries in the EU are also exposed to this new regulation.
All our customers, financial institutions and companies, tell us that the EU Taxonomy represents a kind of regulatory tsunami: it is too complex, too expensive and there are no data.
Dydon AI’ solution to handle the EU Taxonomy regulatory tsunami
That’s why we of Dydon AI developed in collaboration with our partners Bundesverband Öffentlicher Banken Deutschlands (VÖB) and its subsidiary VÖB Service, an AI solution for the EU Taxonomy able to overcome the lack of data and automate the process as far as possible, limiting the contribution of the user to a minimum effort.
Who is Dr. Hans-Peter Güllich
Dr. Hans-Peter Güllich is the founder and CEO of Dydon AI, a Swiss company offering transparent and flexible AI solutions for Fintech, Insurtech, and Medtech.
After his studies in Business Information Technology, he was awarded a doctoral degree in building an AI-based prediction model to assess counterparty risks. A model which has been constantly enhanced and still forms the core of the Dydon AI prediction engine.
His professional experience spans more than 25 years, most of which with consultancies, financial institutions, and IT solution providers.
His extensive knowledge and concrete application of ESG, EU Taxonomy, and CO2 emission calculations, have grown with building the Dydon AI’s Suite for Sustainable Finance.
Connect with Hans-Peter on Linkedin
Sources:
https://www.ipcc.ch/report/ar6/wg1/
Wolfgang Eberhardt; Das Energiesystem der Zukunft; 2022
Gerd Ganteför: https://www.youtube.com/watch?v=hONhURGH3cY
https://gml.noaa.gov/webdata/ccgg/trends/co2_trend_mlo.png
