KPMG, the international accounting firm, has revealed its blockchain-based Climate Accounting Infrastructure (CAI) solution to help organizations measure, report, and offset their greenhouse gas emissions.
It has been reported that CAI uses blockchain to securely store environmental data in a financial system as part of organizations’ climate risk assessments and asset valuations.
However, it aims to help companies meet environmental, social, and corporate governance (ESG) targets. The solution integrates an organization’s existing systems, including IoT sensors, with external data sources to establish a verifiable trail of emissions and offsets recorded on the blockchain.
The report said that KPMG collaborated with data provenance and tracking providers Context Labs and Prescriptive Data, and blockchain firm Allinfra, on the product.
‘Big Four’ accounting firm KPMG has developed a blockchain-based solution to help organizations track their carbon emissions https://t.co/oqVYCfRqfD — Cointelegraph (@Cointelegraph) October 8, 2020
Context Labs enriches emissions data provided by organizations with environmental context, before recording and certifying environmental, operational, and financial information.
Arun Ghosh, the US Blockchain Leader of KPMG, said that the use of blockchain means data reports will be disclosed in a transparent and trustworthy manner in order “to meet stakeholder expectations and to comply with emerging regulations.”
“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.”
Likewise, organizations will also be able to model the impact of climate risks on business operations and financial performance through real-time environmental data and advanced analytics.
Thus, KPMG, earlier this year, predicted that blockchain, in conjunction with Internet-of-Things (IoT), would lead the development of climate change solutions around the world.