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(Kitco News) - As the world evolves towards a more environmentally friendly mode of operation with the rise of environmental, social and governance (ESG) investing shaking up the financial landscape, the Ernst & Young (EY) organization – one of the “big four” accounting firms – is looking to capitalize on the carbon capture trend with the launch of EY OpsChain ESG on the EY Blockchain SaaS platform.
According to the press release from EY announcing the new service, EY OpsChain ESG has been opened for beta use to “provide a single, verifiable view of CO2 emissions (CO2e) to address the needs of enterprises that struggle to accurately measure and track their carbon footprint.”
“Like all EY enterprise solutions, EY OpsChain ESG was developed based on the conviction that blockchains are the glue that can link business processes and global ecosystems across enterprise boundaries,” said Paul Brody, global blockchain leader for EY. “Detailed traceability allows for tracking of emissions inventory through tokenization including the ability to link carbon output to specific product output. By using carbon credit tokens, either created or sourced on the market, enterprises can now have 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 demand via a trusted platform for emissions and carbon credit traceability within an ecosystem through the use of tokenization.”
The tokenization of various forms of assets is fast becoming a widely adopted use case for blockchain technology as it offers an efficient way to record and track transactions in a secure, unalterable 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 to the standards of InterWork Alliance for Carbon Emissions Tokens, EY said, and “provides immutable reporting on an enterprise’s current CO2e that is independently verifiable through the integration of key emissions data validators.”
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In a world where companies will be required to studiously track and record their CO2 emissions, EY OpsChain ESG is designed to help simplify this process by enabling enterprises to demonstrate the authenticity of the carbon offsets used to reduce their environmental impact as they decarbonize.
“Transparency in sustainability is now table stakes for consumers, business partners and regulators,” said Sam Azad, the EY OpsChain ESG product owner. “With net-zero targets under more scrutiny than ever before, our new solution presents enterprises with the opportunity to tell their organization’s ESG story on a digitally trusted platform.”
