- KPMG launches Blockchain-powered solution to track climate emissions
- Infrastructure (CAI) solution, will help firms measure, report, and offset gas emissions
- CAI uses Blockchain technology to store environmental data securely in a financial system
Cryptocurrency News Today – as businesses come under pressure to implement climate change policies, the accounting giant KPMG has reportedly launched a new Blockchain-based solution. The international accounting firm has unveiled a Blockchain-based Climate Accounting solution. The Infrastructure (CAI) solution will help organizations measure, offset, and report their greenhouse gas emissions.
The solution uses Blockchain technology to securely store up environmental data in a financial system. It is done as a part of the firm’s climate risk assessments and valuation of assets. It is designed to help firms meet their corporate governance, environmental, and social, targets.
CAI Integrates The Existing Systems of An Organization With External Data Sources
This solution reportedly integrates the existing solutions of an organization (including IoT sensors) with external data sources. The goal is to discover a verifiable trail of emissions recorded on a Blockchain. The accounting giant partnered with tracking providers Prescriptive Data, and data provenance Context Labs with Blockchain-based firm Allinfra, to create this product.
Context Labs enriches the emissions data given by organizations with environmental context. After this, the data is recorded and certified (that is the environmental, operational, and financial data). According to Arun Ghosh, KPMG’s U.S. Blockchain leader, the use of Blockchain technology means all data reports will be shared in a transparent and trustworthy way. This will ensure that the firm meets stakeholder expectations and remain in compliance with regulations.”
“As investors widen their focus beyond the financial factors to accommodate ESG practices, firms are improving their efforts to reduce carbon footprints, along with the transparent disclosure of progress.”
Firms Will be Able to Model the Impact of Climate Risks on their Financial Performance and Operations
Organizations will have the ability to model the way that climate risk impacts their business operations and financial performance with advanced analytics and real-time environmental data. Earlier in the year, KPMG predicted that Blockchain, in collaboration with IoT (Internet-of-Things), would lead the fight to develop climate change solutions worldwide. Other large corporations have been exploring the different ways that a Blockchain can improve its reporting ability with solutions that track gas emissions.
Additionally, earlier in the year, Mercedes-Benz collaborated with the Blockchain firm Circulor. The goal of the partnership is to track CO2 emissions. Volvo has partnered with the same startup to develop its project which will tackle the same issue. Finally, Carbonblock has created a solution that will help to increase the level of transparency when it comes to climate factors in the Porsche supply chain.