11 ways fintech can help postpone Earth Overshoot Day

In 2025, Earth Overshoot Day is yet again being marked too early on 24th July. According to the Global Footprint Network, this date is “when humanity’s demand on nature surpasses Earth’s capacity to replenish nature during the entire year.” In 2024, this day fell on 1st August, meaning that humanity is persistently overusing the planet’s resources and not responding to this level of overuse.  

Calculated by the network - pioneer of the Ecological Footprint - in partnership with York University, “humanity is using nature 80% faster than Earth’s ecosystems can regenerate, meaning this overshoot is equivalent to using 1.8 Earths. This level of overuse is possible by depleting natural capital, which compromises long-term resource security.” 

With humans emitting more CO2 than can be absorbed, using more freshwater than can be replenished and harvesting more trees that can be regrown, this overuse is depleting what is referred to as the Earth’s natural capital. Further, while we fail to correct what has been dubbed “humanity’s largest market failure”, extreme weather events are intensified, food and energy resources are not built up, and health crises emerge.

This year’s Earth Overshoot Day is the earliest ever. Although, it has been within the first eight months of the year for the past 15 years, apart from 2020. As the Global Footprint Network explains, after the overshoot date is reached, the planet is depleted even further. “Therefore, even as the date holds steady, the pressure on the planet intensifies because the damage from overshoot is cumulative. Every year’s deficit spending adds to the already existing ecological debt.”

The fintech industry can help delay this date and promote a more sustainable future. Triodos Bank, for instance, finances “companies and projects that have a positive impact on society and the environment, focusing on five interlinked transition themes: energy, food, resources, societal and wellbeing.” The green bank goes on to say that if they “manage to achieve these transitions with society as a whole, we can ban Overshoot Day to the history books together.” 

NatWest has a similar view and reiterates that reporting on environmental impact is improving with the establishment of the EU’s Corporate Sustainability Reporting Directive (CSRD and the final framework from the Taskforce for Nature-related Financial Disclosure (TNFD) being released. “Earth Overshoot Day can be a reminder for businesses and investors to think about existing business practices and their impacts. Additionally, the emerging reporting regulations and frameworks will (more or less 'gently’) push both businesses and investors to consider nature and ecosystems in their decision-making.” Here’s a few ways that fintech industry participants can and are attempting to postpone Earth Overshoot Day.  

1. Facilitating green investments: Fintech platforms make it easier for individuals and institutions to invest in environmentally friendly projects like renewable energy, sustainable agriculture, and green real estate. This directs capital towards sustainable initiatives and promotes positive environmental change. 

2. Expanding green financing: Fintech solutions offer innovative lending options for sustainable projects, including green loans and mortgages. This encourages businesses and individuals to adopt eco-friendly practices by making the transition more affordable. 

3. Enhancing ESG transparency: Fintech tools provide businesses with deeper insights into their ESG performance, helping them track key sustainability metrics like carbon emissions and waste reduction. This increased transparency encourages better decision-making and accountability in corporate sustainability.  

4. Carbon footprint tracking: Fintech apps allow individuals and businesses to track their carbon footprint in real-time, providing insights into the environmental impact of their purchases. This encourages consumers to make more sustainable choices by offering tips and rewards for reducing their impact.  

5. Carbon offsetting solutions: Fintech-enabled platforms facilitate carbon offsetting through features like rounding up purchases for donations to verified carbon projects. Some offer sustainable debit cards that contribute to reforestation efforts with every purchase. This helps individuals offset their emissions and supports initiatives working to mitigate climate change. 

6. Promoting sustainable digital payments: Fintech, by offering digital wallets and contactless payments, reduces the need for physical cash and plastic cards, thus minimising waste and emissions associated with traditional payment methods.  

7. Optimising resource management: AI-powered fintech solutions analyse large data sets to forecast demand, optimise supply chains, and minimise resource use across industries. Examples include optimising water usage in agriculture and managing energy consumption in the energy sector. 

8. Facilitating clean energy adoption: Fintech plays a critical role in financing and managing the transition to renewable energy sources. This includes crowdfunding for solar projects, facilitating peer-to-peer energy trading, and providing specialised insurance for renewable energy assets. 

9. Streamlining carbon credit markets: Fintech utilises blockchain technology to create transparent, efficient, and fraud-resistant carbon credit markets. This enhances trust and credibility in carbon markets and encourages industries to adopt greener practices.  

10. Enabling circular business models: Fintech facilitates financial transactions for businesses built on reuse, sharing, repair, refurbishment, and recycling. This reduces waste and promotes more sustainable consumption patterns.  

11. Improving supply chain transparency: Fintech platforms leverage technologies like blockchain to create transparent and tamper-proof records throughout the supply chain. This ensures ethical sourcing and sustainable production, holding companies accountable for their environmental impact.