The Impact of FinTech-Enabled Climate Intelligence on Sustainable Investment Decisions and Green Capital Allocation

Abstract

This study examines how climate intelligence, enabled by financial technology (FinTech), influences sustainable investment decisions and the allocation of green capital. It considers the opportunities created by digital financial technologies, artificial intelligence, big data analytics, and climate-risk assessment applications, in investment appraisal and in redirecting financial flows toward climate-friendly investments. A quantitative, cross-sectional survey design was used with 300 respondents comprising investment professionals, financial analysts, banking professionals, and individuals involved in sustainable finance. Data were analysed using descriptive statistics, reliability analysis, Pearson correlation, and regression analysis. The results indicate a positive relationship between FinTech-enabled climate intelligence and sustainable investment decisions (β = .52, “p” < .001), accounting for 27% of the variance. FinTech-enabled climate intelligence also positively predicts green capital allocation (β = .47, “p” < .001), accounting for 22% of the variance. Sustainable investment decisions and green capital allocation were strongly correlated (“r” = .61, “p” < .01). The findings suggest that digital climate intelligence can support sustainability-based investment appraisal and green financing practices, with favourable environmental information, disclosure and regulatory support, and institutional priorities as important conditions. The study adds a theoretical lens to the FinTech–climate intelligence–sustainable finance literature. The numerical results reported here were generated artificially and are illustrative of statistical procedure rather than actual evidence. Future research using genuine survey responses and institutional investment records is needed to establish whether, and under what circumstances, climate intelligence improves sustainable investment outcomes.

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