The international auditing company KPMG has presented its blockchain-based CAI (Climate Accounting Infrastructure) solution, which companies can use to measure, report and offset their greenhouse gas emissions..
CAI uses blockchain to securely store environmental data in a financial system as part of climate risk assessments and asset valuations by organizations. The aim is to support companies in achieving the goals of environmental, social and corporate governance (ESG).
The solution integrates the existing systems of an organization, including IoT sensors, with external data sources create a verifiable trace of emissions and offsets recorded on the blockchain.
The accounting giant worked with data tracking and origin providers Context Labs and Prescriptive Data, as well as blockchain startup Allinfrain the product. Context Labs enriches the emissions data of organizations with an environmental context before environmental, operational and financial information is registered and certified.
According to US blockchain leader KPMG, Arun Ghosh, By using the blockchain, the data reports are exposed in a transparent and reliable manner “Meet stakeholder expectations and emerging regulations”.
“As investors expand their focus beyond financial factors into ESG practices, companies intensify their efforts to reduce their carbon footprint and to transparently disclose progress.”
Organizations can also model the impact of climate risk on business operations and financial results. Use of real-time environmental data and advanced analysis.
At the beginning of this year KPMG predicted that blockchain, along with the Internet of Things (IoT), would lead the development of solutions to climate change around the world..
Other large companies are also exploring how blockchain can improve the information capacity of solutions that track greenhouse gas emissions.. Earlier this year, Mercedes Benz teamed up with blockchain startup Circulor to track CO2 emissions. Volvo has also partnered with the startup to develop its own project that will address the same issue.
Carbonblock has also developed a solution to increase the transparency of weather-related factors in the chain Delivery by Porsche.