Blockchain for ESG: EY introduces EY OpsChain ESG on Ethereum
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(Kitco News) – As the world moves towards a greener way of operating with the rise of environmental, social and governance (ESG) investing shaking up the financial landscape, the Ernst & Young (EY) organization is one of the “Big Four” accountancy firms – looking to capitalize on the carbon capture trend with the launch of EY OpsChain ESG on the EY Blockchain SaaS platform.
According to the EY press release announcing the new service, EY OpsChain ESG has been opened for beta use to “provide a single, verifiable view of CO2 emissions (CO2e) to meet the needs of businesses struggling to accurately measure and track carbon footprint.”
“Like all EY enterprise solutions, EY OpsChain ESG was developed based on the belief that blockchain is the glue that can connect business processes and global ecosystems across enterprise boundaries,” said Paul Brody, Global Blockchain Leader for EY. “Detailed traceability enables emissions inventory to be tracked through tokenization, including the ability to link carbon production to specific product production. By using carbon credit tokens, either created or sourced on the market, companies can now gain visibility into both their actions towards decarbonization.”
The new service was developed on the Ethereum (ETH) blockchain and is designed to help “provide customers, business partners and regulators with the transparency they require via a trusted platform for emissions and carbon credit traceability in an ecosystem through the use of tokenization.”
The tokenization of various forms of assets is quickly becoming a common use case for blockchain technology, as it offers an efficient way to record and track transactions in a secure, immutable manner.
With EY OpsChain ESG, companies can get a clearer picture of their CO2e positions to help better inform future decisions from an ESG perspective. The platform was built according to the standards of the InterWork Alliance for Carbon Emissions Tokens, EY said, and “provides immutable reporting of a company’s current CO2e that is independently verifiable through the integration of key validators of emissions data.”
In a world where companies will be required to track and record their CO2 emissions, EY OpsChain ESG is designed to simplify this process by enabling companies to demonstrate the authenticity of the carbon offsets used to reduce their environmental impact as they decarbonise.
“Sustainability transparency is now table stakes for consumers, business partners and regulators,” said Sam Azad, EY OpsChain ESG Product Owner. “With net-zero goals under more scrutiny than ever before, our new solution gives companies the ability to tell their organization’s ESG story on a digitally trusted platform.”
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