June 7, 2023

Radiant AI Is The POC-Owned Platform Tackling Greenwashing In Financing

UK-based engineers Jonathan Nwosu, Min Sang Kim, and Dakshesh Dharmadhikary have teamed up to launch Radiant AI, a new platform that helps lenders track the impact of their sustainable investments.

Sustainability-linked loans (SLLs) have revolutionized global lending by linking interest rates to borrowers’ sustainability performance.

Real estate financing has been a frontrunner in adopting SLLs, recognizing the value of energy-efficient buildings and contributing to a low-carbon economy. However, the rapid growth of SLLs has also introduced risks like inaccurate reporting and greenwashing.

That’s where Radiant AI comes in.

Radiant AI

“We’re excited to introduce Radiant AI,” Radiant AI co-founder and CEO Jonathan Nwosu wrote on LinkedIn. “We’re committed to tracking the impact of £2 Trillion in Green Financing that is needed over the next decade.”

Radiant AI uses advanced AI systems to automate the extraction of crucial key performance indicator (KPI) data, such as energy efficiency metrics, building waste, and greenhouse gas emissions.

Radiant AI was founded by Jonathan Nwosu, Min Sang Kim, and Dakshesh Dharmadhikary, a group of University of Oxford alumni with extensive experience in data science, machine learning, and product development.

Radiant’s one-click connection to get borrower energy usage and directly track KPI progress

Their goal is to apply their software engineering expertise to help companies manage their environmental, social, and governance (ESG) data effectively.

With real-time data and powerful visualizations, lenders can assess and track the impact of sustainable financing, avoiding greenwashing and confidently communicating their contributions to stakeholders.

Cracking down on greenwashing

The term greenwashing is used to describe any dishonest practices used by businesses to represent themselves as more climate-friendly and environmentally-sustainable than they really are. While this can happen unintentionally, companies can also deliberately mislead consumers and investors for financial gain.

A McKinsey report found that Gen Z are more likely to spend money on companies and brands seen to be ethical. Similarly, Nielson’s Global Corporate Sustainability Report found that 66% of consumers (and 77% of millenials) would spend more on a product if it comes from a sustainable brand.

Read: Black-Led BlocPower Secures $150M To Make America’s Buildings Greener

Over the last few years, there has been a dramatic increase in green/ sustainable investments. However, this has led to increasing concerns about the extent of greenwashing occuring in green financing.

Radiant AI’s platform aims to tackle greenwashing and inaccurate reporting through transparency and accountability.

Democratize access to sustainable financing

Radiant AI goes beyond assisting large borrowers; the London-based startups aims to democratize access to sustainable financing by expanding the SLL market to smaller borrowers.

Through seamless integrations and simplified data sharing, Radiant AI enables a wider range of businesses to participate in sustainable financing, accelerating the transition to a greener future.

Its mission is to redefine the lending landscape by promoting transparency, accountability, and responsible lending practices, ensuring that each loan contributes significantly to the global sustainability agenda and makes a lasting impact on the planet and society.

Samara Linton

Community Manager at POCIT | Co-editor of The Colour of Madness: Mental Health and Race in Technicolour (2022), and co-author of Diane Abbott: The Authorised Biography (2020)