Leveraging emerging technologies (AI, blockchain, data analytics, internet of things) to address ESG data challenges to unlock investment towards sustainable development.

1. 1
SustainTech
Lapman Lee,
Professor of Practice (FinTech)
Leveraging emerging technologies (AI, blockchain,
data analytics) to address ESG data challenges to
unlock investment towards sustainable development

2. 2
Source: United Nations. The Sustainable Development Goals (SDGs) are a universal call to action to end poverty, protect the planet
and improve the lives of everyone, everywhere. The 17 Goals were adopted by all UN Member States in 2015, as part of the 2030
Agenda for Sustainable Development which set out a 15-year plan to achieve the Goals.
Sustainable development
Definition: the development that meets the needs of the present without
compromising the ability of future generations to meet their own needs.

3. 3
Source: OECD, United Nations
Sustainable development financing gap
An estimated USD 5-7 trillion investment annually is required to achieve the
Sustainable Development Goals (SDGs) by 2030 ..
… with finance not being channeled towards sustainable development at
the scale and speed necessary to achieve the SDGs and objectives
of the Paris Agreement on climate change.

4. 4
ESG data challenges (availability and quality, comparability and reliability,
data sharing) are important hurdles preventing the build-up of scale and
speed of investment flows towards sustainable development ..
… where emerging technologies such as AI, blockchain, data analytics, and
the Internet of Things (IoT) can help address (some of) them.
Sustainable development data gap
Source: ASIFMA

5. 1. Capture environmental ESG data using IoT,
drones, and satellites to help demonstrate:
✓ Use of Proceeds (initial traceability)
✓ Proof of Impact (ongoing monitoring)
2. Capture and store environmental ESG data
integrating IoT and blockchain technologies as
data tokens for further dissemination and
inclusion in company due diligence and to drive
supply chain transparency.
3. Capture cost savings in initial data collection,
data sharing and dissemination of data tokens.
1. CAPTURE 2. CONVERT
3. CREATE
4. CULTIVATE
Artificial
Intelligence
IoT
Blockchain
Data Analytics
SustainTech framework (part 1)
Developed by Lapman Lee, Professor of Practice (FinTech)
Data Analytics

6. 1. Convert (un)structured ESG data after
consolidation into standardized metrics using AI
and data analytics for stakeholder use
(governments, rating agencies, financial
institutions, non-FI companies).
2. Convert and enrich ESG primary and secondary
data to arrive at a more comprehensive and
dynamic ESG rating using AI and data analytics,
for institutional and retail investors to leverage.
1. CAPTURE 2. CONVERT
3. CREATE
4. CULTIVATE
Artificial
Intelligence
IoT
Blockchain
Data Analytics
SustainTech framework (part 2)
Developed by Lapman Lee, Professor of Practice (FinTech)
Data Analytics

7. 1. Cultivate a lifestyle that is aligned with an
individual consumer’s ESG values through the
transparency of one’s environmental footprint,
combining data and analyzing patterns from banks
and external partners shared through open APIs.
Social media can play a role in cultivating the
desired behavior through peer comparison and
competition.
2. Cultivate digital trust and engagement of investors
through access to tailored dashboards using up-to-
date data to monitor portfolio performance against
ESG criteria and make informed withdrawal
decisions (“vote with your wallet”).
1. CAPTURE 2. CONVERT
3. CREATE
4. CULTIVATE
Artificial
Intelligence
IoT
Blockchain
Data Analytics
SustainTech framework (part 3)
Data Analytics
Developed by Lapman Lee, Professor of Practice (FinTech)

8. 1. Create reports and dynamic dashboards tailored for
different stakeholders (Board, customers,
employees, investors) using AI and data analytics to
slice and dice data stored on data tokens.
2. Create digitized investment products using
algorithms, blockchain, and cryptography to reduce
the cost of certification and monitoring. E.g., Green
Bond tokenization to fund smaller projects and
broaden the investor base (due to a lower
threshold).
3. Create new tailor-made investment products that
contribute to (country) specific ESG goals or SDGs
through digital trust in underlying data.
1. CAPTURE 2. CONVERT
3. CREATE
4. CULTIVATE
Artificial
Intelligence
IoT
Blockchain
Data Analytics
SustainTech framework (part 4)
Data Analytics
Developed by Lapman Lee, Professor of Practice (FinTech)

9. 1. Convert (un)structured ESG data after
consolidation into standardized metrics using AI
and data analytics for stakeholder use
(governments, rating agencies, financial
institutions, non-FI companies).
2. Convert and enrich ESG primary and secondary
data to arrive at a more comprehensive and
dynamic ESG rating using AI and data analytics,
for institutional and retail investors to leverage.
1. Capture environmental ESG data using IoT,
drones, and satellites to help demonstrate:
✓ Use of Proceeds (initial traceability)
✓ Proof of Impact (ongoing monitoring)
2. Capture and store environmental ESG data
integrating IoT and blockchain technologies as
data tokens for further dissemination and
inclusion in company due diligence and to drive
supply chain transparency.
3. Capture cost savings in initial data collection,
data sharing and dissemination of data tokens.
1. Create reports and dynamic dashboards tailored for
different stakeholders (Board, customers,
employees, investors) using AI and data analytics to
slice and dice data stored on data tokens.
2. Create digitized investment products using
algorithms, blockchain, and cryptography to reduce
the cost of certification and monitoring. E.g., Green
Bond tokenization to fund smaller projects and
broaden the investor base (due to a lower
threshold).
3. Create new tailor-made investment products that
contribute to (country) specific ESG goals or SDGs
through digital trust in underlying data.
1. Cultivate a lifestyle that is aligned with an
individual consumer’s ESG values through the
transparency of one’s environmental footprint,
combining data and analyzing patterns from banks
and external partners shared through open APIs.
Social media can play a role in cultivating the
desired behavior through peer comparison and
competition.
2. Cultivate digital trust and engagement of investors
through access to tailored dashboards using up-to-
date data to monitor portfolio performance against
ESG criteria and make informed withdrawal
decisions (“vote with your wallet”).
1. CAPTURE 2. CONVERT
3. CREATE
4. CULTIVATE
Artificial
Intelligence
IoT
Blockchain
Data Analytics
Data Analytics
SustainTech framework
Lapman Lee, Professor of Practice (FinTech)

10. 10
Lapman.Lee@PolyU.edu.hk
Thank you for your time and feel free to reach out
if you would like to know more about SustainTech.