As climate risks, social equity, and regulatory pressures become defining factors for the finance industry, FinTech and Web3 companies are under growing scrutiny to not just innovate, but to innovate responsibly. At the heart of this shift is ESG: Environmental, Social, and Governance.
But what does ESG really mean when you’re working at the edge of finance and technology? How can crypto, often criticized for its energy use, actually become a tool for sustainability? And what does it take to go beyond greenwashing to build something truly ethical?
To answer these questions, we spoke with Violaine Champetier de Ribes, Head of ESG at CoinsPaid. She’s not only leading internal transformation at one of Europe’s licensed crypto payment providers but also actively shaping the broader conversation in the industry. The recent case – Violaine moderated the “Web3 & ESG” panel at the Nordic Blockchain Conference, which brought together expert voices from the MiCA Crypto Alliance, Crypto Carbon Ratings Institute, UNICEF, and Crypto Risk Metrics.
In this in-depth conversation, Violaine unpacks ESG in FinTech and Web3 – from practical product decisions and regulatory shifts to culture change, and what’s next for decentralized sustainability.
Foundations of Ethical Finance and ESG
Let’s start simple – what does ethical finance mean in FinTech, especially for B2B payments?
Ethical finance means integrating fairness, transparency, sustainability, and social responsibility into the way financial services are built and delivered. In the payments, this means ensuring fees are transparent, data privacy is respected, and that we avoid exploiting users or cutting ethical corners to increase profits.
A good example is CoinsPaid’s commitment to eliminate hidden fees and ensure all user data complies with GDPR. It also means personal data remains private and is never disclosed or monetized, ensuring robust AML/KYC protections. These practices aren’t just regulatory – they’re ethical, and we treat them as such.
We’re also exploring how FinTech payments can support environmental goals. Ethical finance is about proactively designing systems that don’t just move money, but move it responsibly.
What impact do ESG principles actually have on the way FinTech and Web3 products are built?
ESG is no longer just a reporting requirement – it’s become a framework for product design. For example, when we design new features at CoinsPaid, we are focusing on how this affects user data privacy and how transparent the pricing is.
Choosing the right blockchain architecture, such as Proof-of-Stake over Proof-of-Work, is a huge factor in our environmental impact. Ethereum’s move to PoS reduced energy consumption by over 99%. That’s not a small tweak – it’s a structural choice with ESG implications.
Can you explain MiCA and CSRD, and why they matter for ESG in FinTech and crypto?
MiCA (Markets in Crypto-Assets) is a EU crypto-specific regulation that primarily focuses on market integrity, consumer protection, and licensing requirements for crypto-asset issuers and service providers. While it has specific sustainability requirements, it focuses on the asset level, not the entity, whereas CSRD focuses on entities and the carbon footprint of the company. It’s aimed at company-level disclosures and includes metrics across governance, emissions, risk management, and diversity. So the approach is very different. They serve distinct regulatory purposes.
We have also partnered with the Crypto Carbon Ratings Institute to provide the MiCA sustainability requirements.
At CoinsPaid, we were initially expecting to report under CSRD this year, but the timeline was pushed with the Omnibus package proposing amendments to several sustainability laws. Still, we’re continuing with our ESG strategy because these regulations aren’t going away. They’re likely to evolve. Some people even mention that MiCA 2.0 could bring Scope 3 emissions reporting or even climate taxes. So, CASP (Crypto Asset Service Provider) should prepare now, not later.
Blockchain’s Role in Enabling ESG
Everyone talks about blockchain and sustainability – how can blockchain really help ESG efforts?
Blockchain has a lot of potential for ESG, but only if used correctly. It’s not inherently sustainable. But it can provide a level of traceability and transparency that traditional finance struggles with. For example, blockchain is a great tool for carbon accounting, auditability of donations, or verifying supply chain steps.
At the Nordic Blockchain Conference, a key point raised by the panelists during the roundtable I moderated was that blockchain alone doesn’t guarantee data integrity – if the input data is flawed, the output will be too, even if it’s on-chain. However, when reliable data is used, blockchain can enhance transparency and accountability, as seen in carbon markets or the tracking of social impact from DeFi grants.
We also discussed the danger of vague terms like “green blockchain.” Unless projects clearly define what they mean – low energy use, renewable energy sources, or node decentralization – it can veer into greenwashing. So we need better metrics and better intentions.
What is CoinsPaid doing internally to live up to ESG in FinTech?
We’ve taken a multi-pronged approach to embed ESG into our operations and culture. First, we use Greenly to track our carbon emissions and plan our offsetting strategy. We are currently working on selecting several reforestation projects. Giving the team ownership builds engagement and accountability.
We’ve also conducted an internal ESG awareness survey, and the results were encouraging. Many employees, even those previously unfamiliar with ESG, showed genuine interest. However, we also discovered that not everyone is on board yet. Some team members voiced skepticism, partly due to public figures criticizing ESG. That’s why education is key. We’re launching quarterly workshops and bringing in academic speakers to break down the practical and ethical importance of ESG.
There’s a cultural shift underway, and it’s important that employees see how their actions contribute to a larger impact.
And beyond just awareness, we’re expanding internal training opportunities. I recently began a course in sustainability at INSEAD myself. These actions create momentum and a shared understanding that ESG is a journey, not a slogan.
ESG in DeFi and the Realities of Web3 Startups
What makes ESG so tricky for DeFi and crypto startups in particular?
DeFi and crypto startups operate in an environment where traditional ESG frameworks don’t quite fit. For example, measuring governance in a DAO (Decentralized Autonomous Organization) is not as straightforward as in a corporation with a board of directors. Metrics like “token distribution” or “GitHub contributions” are unique to Web3, but they don’t easily translate into traditional ESG indicators.
A key idea from the panel was that many Web3 governance models emphasize automation and anonymity, which can conflict with regulatory frameworks like the CSRD that require clear organizational structures, defined accountability, and ethical guidelines.
At the same time, Web3 has real ESG potential. UNICEF is already using decentralized systems to track vaccines. The key is not to copy legacy systems but to adapt them. We need to define what social equity and governance mean in the context of permissionless systems.
The biggest mistake startups make is thinking they’re too small to care about ESG. But regulation is evolving quickly. And public expectations are even faster. Early action gives startups an edge when ESG standards become mandatory. Besides, investors and partners expect ESG alignment for credibility and risk management.
Practical Steps for ESG Adoption in FinTech and Web3
If a FinTech or Web3 startup is just getting started with ESG, where should they begin?
Start where you are. Don’t overcomplicate it in the beginning. Look at what you’re already doing that aligns with ESG principles, even if you haven’t labeled it that way. Maybe you already use a Proof-of-Stake blockchain – that’s an environmental benefit. Maybe your hiring practices prioritize diversity – that’s a social metric.
From there, create a simple ESG roadmap. Prioritize compliance, especially with GDPR, AML, and KYC – this strengthens your governance profile.
One essential lesson from the conferences I’ve attended is to avoid greenwashing at all costs. If you’re not doing something yet, don’t say you are. Transparency builds trust. It’s better to say, “We’re not there yet, but here’s what we’re working on,” than to overpromise and underdeliver.
Remember, the ESG journey is a process. It’s okay to start small, as long as you start with intention.
Final Thoughts
ESG in FinTech and Web3 is more than a compliance task – it’s soon to become a new standard for responsible innovation. From green blockchain infrastructure to ethical data usage and inclusive governance, the time to act is now. As Violaine says, “Blockchain won’t fix ESG on its own, but it can empower those who are ready to build with purpose.”
