KPMG Rolls Out Blockchain Tool for Tracking Carbon Emissions
One of Big Four consulting firms, KPMG, has announced the roll out of a blockchain Climate Accounting Infrastructure (CAI) structured to facilitate KPMG’s customers to more precisely evaluate and administer their carbon emissions.
The latest blockchain platform is an answer to the rising need for enterprises to follow ecofriendly methods and match environmental, social and corporate governance (ESG) objectives.
The blockchain solution ensures transparency about advancement of ESG to investors and assists in monitoring greenhouse emissions. To ensure dependable and transparent documents pertaining to greenhouse emissions “CAI will integrate an organization’s existing systems, including IoT sensors, with external data sources to establish a verifiable trail of emissions and offsets recorded on blockchain”.
Data from other origins and analytical procedures will also be adopted to arrive at a final conclusion on the impact of climate risks on the functioning of business and its top and bottom line.
For the aforesaid venture, KPMG partnered with Allinfra, Context Labs, and Prescriptive Data. Allinfra is a blockchain company that intends to tokenize environmental assets and framework. In addition to the tokenization of solar panels for a Hong Kong real estate investment trust, it took part in a use case pertaining to Singapore’s central bank digital current piloting program.
Context Labs, a blockchain focused firm, precisely provides info on the origin of data. Prescriptive Data offers a software tool to monitor building related activities such as power consumption and emissions utilizing IoT gadgets.
Notably, KPMG is not the first entity to introduce a tool for transparently providing data pertaining to carbon emission. A few months back, Mercedes-Benz announced that it has joined hands with blockchain firm Circulor on a venture for monitoring CO2 emissions related to cobalt supply chain.
Circulor is also collaborating with Volvo on identical ventures. Of late, CarbonBlock received the Global Innovation Award from Plug and Play for its software for improving the transparency of greenhouse emissions in the supply chain of luxury car manufacturer Porsche.
It attains this by giving the carbon footprints of all raw materials used for manufacturing. Both tools could likely add value to KPMG’s work.
With regards to prominent names in the domain, the Interwork Alliance is concentrating on token norms for carbon credits. Its members include Microsoft, Accenture, and blockchain energy companies. Interestingly, Xpansiv, a sister concern of CBLmarkets and a founding member, is perceived as a competitor to Allinfra.
In the meantime, KPMG’s entry into this domain may considerably improve the accessibility of blockchain CO2 tracking technology due to company’s broad client base.