International Financing Review features Green Assets Wallet as Impact TechJune 30, 2022
Green Assets Wallet is featured in the latest International Financing Review report on IMPACT TECHNOLOGY (page 21 and onwards).
Cecilia Repinski, CEO & Founder of Green Assets Wallet explained that “if it were possible to collect data using machine learning, we would be the first ones to do it. But that is not where we are, at least not for the data sets issuers report, which are often complex and not comparable.”
Investors need to show verifiable impact from their investments, alongside their monetary returns. They also need to analyze the performance of their portfolios and compare impact across different investments.
“There is clearly a bottleneck. We are just one piece of the puzzle to help clear this bottleneck,” said Repinski. “We use digital solutions to make it easy, transparent and cost effective for investors to evaluate impact and make informed allocation choices, and for issuers to demonstrate the impact of their operations and so attract investors.”
The lack of harmonization in the market, however, is what is holding back the full and lasting potential of technology on impact reporting.
“We are aligned with all the standardization initiatives,” said Repinski. “But even when issuers follow the guidelines, and assign their impact to specified categories, they use different methodologies and boundaries. Despite their good intentions, data is a long way from being harmonized unfortunately.”
The process still requires human input to collect, sort and lastly analyze the complex data.
Perhaps surprisingly for a tech company our team of impact data analysts is the part of the business that is growing the fastest.Cecilia Repinski CEO & Founder Green Assets Wallet
It is impossible to use machine learning or AI for this; there is no algorithm in the world that can get this right.
Analysts need to understand and decipher exactly what issuers mean when they are reporting. Some might report on total product impact even though they may not have financed all the projects, some on total debt portfolio, and some on what is prorated to a specific bond. And then there are different interpretations on definitions and time periods.
“It is impossible to use machine learning or artificial intelligence for this; there is no algorithm in the world that can get this right,” said Repinski. “You really need to have experts that can understand it.”
A better and clearer data structure is required before technology can unleash the promise of improved impact reporting and play its part in mobilizing private capital towards financing the transition.
The terminology is there, but the interpretations of it are so different.
To this end, Green Assets Wallet is developing a Wikipedia of definitions on its platform to help issuers and investors to better understand how to report and analyze impact data.
“We feel that it is our responsibility – and in everyone’s interest – to have a common understanding of what we mean with these terms,” said Repinski. “The terminology is there, but the interpretations of it are so different.”