EY Chooses Ethereum Blockchain to Launch Carbon Emission Tracking Solution
A beta version of a blockchain-based platform has been released by Ernst & Young (EY) to allow businesses to track their carbon footprint. It is expected by EY that the platform based on Ethereum will allow enterprise clients to tokenize the CO2 emissions (CO2e) of their products. The new CO2e-tracking platform of EY is said to comply with the specifications for Carbon Emissions Tokens of the InterWork Alliance.
On Wednesday, EY, a professional services firm based in the UK, unveiled EY OpsChain ESG, a blockchain-powered platform that enables companies to track and evaluate their CO2e emissions. The Ethereum blockchain-based beta version of the solution is currently available on the EY Blockchain SaaS platform.
According to a press release by EY, the EY OpsChain ESG platform will offer a reliable platform for emissions and carbon credit traceability within an ecosystem by utilizing tokenization. This will also provide transparency to consumers, business partners, and regulators.
Furthermore, through the process of tokenizing product emissions, the platform offers companies unique perspectives on their carbon footprint. This allows them to make better choices regarding their future environmental, social, and governance (ESG) initiatives. The EY OpsChain ESG follows the InterWork Alliance’s Carbon Emissions Tokens standards, enabling companies to create unchangeable reports on their current carbon dioxide emissions. In the end, the platform allows businesses to prove the legitimacy of the carbon offsets they utilize to decrease their environmental footprint while lowering their CO2e emissions.
EY’s latest release demonstrates how companies are still using blockchain technology to track their CO2 emissions, credits, and other workflow elements. Blockchain and DLT’s decentralized and transparent nature allows businesses to create a secure and unchangeable record of their emissions data, which enhances accountability and transparency in their ESG initiatives. By demonstrating their commitment to environmental sustainability, businesses can comply with regulatory requirements, reduce their carbon footprint, and develop stakeholder trust.
Blockchain companies are also striving to decrease their carbon emissions. According to Forex Suggest, Ethereum’s carbon dioxide emissions decreased significantly from 21.95 million tons to 8,824 tons in a year due to the Merge upgrade in September. The upgrade changed Ethereum’s model from proof-of-work (POW) to proof-of-stake (POS).