KPMG, an international accounting giant, has launched a blockchain-based solution for tracking climate emissions. The new blockchain-based system is called Climate Accounting Infrastructure (CAI), which would enable big organizations and companies to monitor their carbon emission and offset their greenhouse gas emissions.
The CAI blockchain solution would store environmental data in a financial system that could be utilized by the partner firms to meet their Environmental, Social, and Corporate Governance (ESG) targets.
CAI can be integrated with a company's existing systems with external data sources, which would record its emissions. The data would be recorded on the blockchain system to ensure secure storage.
KPMG partnered with data provenance and tracking providers Context Labs and Prescriptive Data, and the blockchain firm Allinfra, on the product side. Context Labs is responsible for enriching organizations' emission data, matching it with environmental context, and later recording and certifying the data on the blockchain system.
Arun Ghosh, the head of KPMG’s U.S. blockchain, commented on the launch of their new blockchain-based system and how it would ensure greater transparency. He said,
“As investors broaden their focus beyond financial factors to include ESG practices, organizations are increasing efforts to reducing carbon footprints, alongside transparent disclosure of progress.”
How Would CAI Help Organizations Become More Environment Friendly?
The blockchain-based CAI solution would help organizations comply with the latest environmental regulations and model the impacts and risks based on their business model with real-time data.
Climate change is real, and many big tech firms with large carbon footprints have pledged to bring it down to zero in the near future. With the rising earth's temperature and melting glaciers, discussions around climate change have become the need of the hour. And Blockchain is definitely going to help in enhancing and furthering that goal with properties such as transparency and accountability.