ESG Traceability and Blockchain
20 Dec 2021 , AI, Blockchain, Climate Change, ESG
The 21st Century definition of Sustainability refers to the co-existence of Earth’s biosphere and human civilization and the interconnected domains of environment, economy, and society.
TRST01 wishes to play a significant role in addressing climate change challenges defining sustainability data democratization. We are creating values for data on Sustainability.
ESG, Sustainable Agriculture, Agroforestry, Permaculture, Mixed farming, Multiple cropping, and crop rotation.
Cop26 and further deliberation provide an excellent opportunity to bridge the difference between “have” and “have nots,” creating tremendous employment opportunities for tribes/communities who preserve and rejuvenate a forest, help in afforestation. Woods plays a more prominent role in absorbing atmospheric Co2 and Methane. The reliable, authentic data makes dwellers’ values a vital source of Income.
ESG traceability
Environment Social and Corporate Governance (ESG) is becoming a key business imperative. Despite the motivations, it’s clear that positive ESG outcomes will impact our society. The key to this is ensuring we have adequate means to measure our progress, as this will help us meet sustainability goals and prove we have achieved what we set out to do.
A successful ESG strategy can make organizations resilient, create long-term value, and build trust.
ESG helps investors better understand the Sustainability and societal impact of a business to determine current valuation and future financial performance. In today’s world, consumers expect greater transparency and detailed disclosures. Transparency is linked to trust, and consumers want to trust the companies they buy from. And conversely, they also prefer to buy only from the brands they trust! The supply chain can be seen as the more significant ESG risk for most companies with complex vulnerability across their global linkages.
Traceability is critical to achieving and communicating Sustainable Development Goals (SDGs) and the overall ESG strategy. When communicating their sustainability success stories to the world, corporations must be sure that they have an indisputable record that authenticates their message. In a world where ESG efforts are coming under increasing scrutiny, not only by the regulators who have woken up to the challenges we are facing as a society but also by increasingly conscious consumers, it’s time to show some evidence.
As Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, said last year: “We should embrace independent tracking tools for assessing progress under the Paris agreement and the SDGs and implement “stakeholder capitalism” by introducing an environmental, social, and governance (ESG) scorecard for businesses”. This sentiment was reflected at Davos 2020, with the Forum discussing how to create a general framework for companies to demonstrate and verify their long-term Sustainability and integrate ESG considerations alongside their financial reporting.
The rise of ESG and Role of Carbon offset
It is now widely understood that non-financial factors can improve business performance. As a result, there is increasing recognition of ESG topics’ importance across the investment sector. For the financial year (2022-23), India has included Business Responsibility and Social reporting as mandatory disclosure for big corporates. Furthermore, reporting ESG data allows stakeholders and investors to gain insight into Business and maximize Business positive impact.
Use case Mineral Traceability
Mining companies have historically ranked poorly on Environmental, Social and Governance indicators. Despite being a capital- and carbon-intensive industry, ESG concerns have not been on a high priority list, nor as a good practice has existed in the company’s pockets but has not been knitted into a cohesive policy or had a board driving the initiative. But change is underway. Propelled by investors and regulators demand and supported by a changing global economy, there is now widespread recognition in the industry that ESG has to be a core component of any mining company’s strategy and policies.
Over the last decade, ‘responsible sourcing’ has become a topic of broad interest. Policymakers, consumers and companies refer to ‘responsible sourcing’ to address sustainability risks in globalized mineral supply chains. Still, the term refers to a wide range of sustainability objectives pursued by various approaches.
Why should we pay closer attention to the blockchain regarding sustainability goals out of the many digital technologies available?
It all goes back to traceability and those auditable records that prove progress. The principles of transparency and trust embodied in its foundations, coupled with its immutability and ability to digitally represent assets moving along value and supply chains, make blockchain the clear choice to introduce traceability into industrial processes. By adopting blockchain technology to prove transparency so that no other digital technology can, businesses will improve their sustainability credentials and make reporting easier.
References
- Blockchain: the key to unlocking the full potential of ESG ….
- Global supply chains: can polluters ever be sustainable?.
Share Blog on: