23 August 2024 – Zumo, a leading digital assets infrastructure company, has just signed the Abu Dhabi Declaration on Sustainable Finance, marking an unprecedented step in its relentless commitment to sustainability within the financial services industry. This move aligns with Zumo’s strategic expansion into the Middle East and its mission to foster a more sustainable digital assets ecosystem.
Commitment to UAE’s Green Economy
The Abu Dhabi Declaration on Sustainable Finance is a 2019 initiative by Abu Dhabi Global Market, working in collaboration with the Ministry of Climate Change and Environment, the Central Bank of the UAE, and the Securities and Commodities Authority. It has been adopted with an objective to promote the growth of a sustainable finance industry within the United Arab Emirates. The Declaration underpins the UAE’s vision of the Green Economy, encouraging its industry stakeholders to factor sustainable practices into their financial activities.
The signing of this Declaration will see Zumo work in collaboration with other players in laying down green and sustainable investment frameworks. This is expected to lead to a hugely valuable experience contribution towards the UAE’s ambition for sustainability through digital assets and blockchain technology expertise.
Zumo in Sustainable Finance
With its wealth of experience, Zumo has been at the forefront in driving sustainability within the space of digital assets. Previously, the firm was part of global initiatives, such as the World Economic Forum’s Crypto Sustainability Coalition, which explored ways by which blockchain technology could serve climate action. This simply reaffirms Zumo’s belief that digital assets could lead toward environmental sustainability.
Building on its membership in the Alliance, Zumo released Oxygen, a pioneering solution that deploys blockchain technology and market instruments, such as renewable energy certificates and carbon removal credits. In this context, Oxygen is developed to measure, reduce, and report the carbon impact from digital asset activities of financial institutions. This provides a clear, accountable way for companies to manage their environmental footprint.
Multi-stakeholder collaboration driving a sustainable future
By joining the Abu Dhabi Declaration on Sustainable Finance, Zumo will become one of the companies to collaborate with other signatories in the development and implementation of green investment frameworks. The cooperation could not come at a better time, as the UAE also puts itself on the map as a global center on both digital assets and green technologies. Zumo will be key in this with its experience in sustainable finance, especially considering the company has already done work in Europe regarding the alignment of financial products with sustainability goals.
For example, Zumo is working in partnership with Jacobi Asset Management to ensure Europe’s first spot Bitcoin ETF meets the goals of net-zero. This statement of intent sets how Zumo is ensuring strict environmental criteria for digital assets. As the company grows into the UAE, it looks forward to bringing similar sustainable solutions to the Middle Eastern market and continues to work very closely with local financial institutions to help support their own respective journeys toward sustainability.
New Technologies and International Standards
Apart from work on green finance, Zumo is also actively contributing to the shaping of global standards for sustainability in the digital assets space. The co-founders from the company’s team founded the Emerging Technologies Sustainability Taskforce, an initiative focused on sorting out the intersection of traditional accounting practices and sustainability standards with the unique technical requirements for emerging technologies like blockchain.
This will be very important in ensuring that the unique features of blockchain and other digital technologies are factored into global sustainability standards to be developed. It epitomizes the core proactive feeling of Zumo toward integrating issues of sustainability into the digital assets industry and loyalty to responsible innovation.
Strategic Expansion into the Middle East
The decision of Zumo to join the Abu Dhabi Declaration on Sustainable Finance comes when it is eyeing a larger presence in the Middle East. With the UAE fast becoming both a crypto and green tech hub, fostered by dynamic regulations and government encouragement of innovation, building a foothold in this dynamic market places Zumo in the perfect position to ensure contributions toward the region’s growth as a leader in sustainable finance.
The choice of the UAE for this expansion also aligns with the global regulatory trend. For instance, the ESMA introduced ESG disclosures in Europe for crypto-asset providers and token issuers under its Markets in Crypto-Assets framework. Experience that Zumo has built in navigating these regulatory landscapes will be immensely valuable as the company works with UAE-based stakeholders to drive sustainability in the sector of digital assets.
Looking Ahead
Declaring their commitment with the operational growth of Zumo across the Middle East, this declaration is significant in serving as a commitment to green finance promotion across the region. In view of the experience in the sphere of digital assets and heavy engagement in sustainability, it establishes itself as one of the chief companies in the process of building a sustainable and resilient financial ecosystem within the UAE.
In this respect, the work that Zumo will undertake with other Declaration signatories will be vital in developing the frameworks that will guide green investment and sustainable financial practices within the UAE. Looking ahead, the company continues to drive innovations within the space of digital assets as it deals with ensuring that sustainability remains at the top on its business strategy.
Source: Zumo
Credits: Zumo