The European Union’s new Deforestation Law (EUDR) is making waves worldwide. Set to take effect on December 31, 2024, this regulation will impose strict requirements on products like coffee, cacao, and palm oil to ensure they do not originate from recently deforested areas. Companies trading with the EU will need to verify the deforestation status of their goods, adding layers of compliance.
However, the EUDR has sparked global debate. The United States is pushing for a delay, citing concerns over the regulation’s far-reaching consequences, but the EU remains firm in its timeline, with any postponement seen as unlikely.
For supply chains, this new law signals a substantial shift. Increased compliance measures will raise costs for goods entering the EU and could lead to disruptions as companies adjust to meet the new requirements. Organizations trading in the region should start preparing for these changes to avoid future bottlenecks and compliance issues.
How Trust Your Supplier (TYS) Can Help
TYS’s comprehensive compliance questionnaires can ease the burden of these new requirements. By digitizing and automating the verification process, TYS helps businesses collect and manage critical information from suppliers regarding their deforestation practices. This streamlined approach ensures that your suppliers meet EUDR standards, reducing the risk of non-compliance and allowing for quicker, more efficient supply chain adjustments. With real-time monitoring and proactive alerts, TYS empowers your team to stay ahead of evolving regulations and ensure your products are ready for the EU market.
Prepare now and leverage TYS to navigate the complexities of the EUDR with confidence.
The European Union’s new Deforestation Law (EUDR) is making waves worldwide. Set to take effect on December 31, 2024, this regulation will impose strict requirements on products like coffee, cacao, and palm oil to ensure they do not originate from recently deforested areas. Companies trading with the EU will need to verify the deforestation status of their goods, adding layers of compliance.
However, the EUDR has sparked global debate. The United States is pushing for a delay, citing concerns over the regulation’s far-reaching consequences, but the EU remains firm in its timeline, with any postponement seen as unlikely.
For supply chains, this new law signals a substantial shift. Increased compliance measures will raise costs for goods entering the EU and could lead to disruptions as companies adjust to meet the new requirements. Organizations trading in the region should start preparing for these changes to avoid future bottlenecks and compliance issues.
How Trust Your Supplier (TYS) Can Help
TYS’s comprehensive compliance questionnaires can ease the burden of these new requirements. By digitizing and automating the verification process, TYS helps businesses collect and manage critical information from suppliers regarding their deforestation practices. This streamlined approach ensures that your suppliers meet EUDR standards, reducing the risk of non-compliance and allowing for quicker, more efficient supply chain adjustments. With real-time monitoring and proactive alerts, TYS empowers your team to stay ahead of evolving regulations and ensure your products are ready for the EU market.
Prepare now and leverage TYS to navigate the complexities of the EUDR with confidence.
Innovation thrives on collaboration. This #WTISD, we celebrate the power of collective, multi-stakeholder initiatives to drive digital innovation for the prosperity of all.
At Trust Your Supplier, we’re proud to partner with forward-thinking companies like BT Sourced, who “Source for a better future.”
“BT Sourced is committed to driving positive change in the telecommunications industry, and our partnership with Trust Your Supplier amplifies our efforts to create a sustainable supply chain for generations to come.” – Cyril Pourrat, CPO, BT Group
Learn more from Melissa Reddy, who leads Risk and Sustainability at BT Sourced, on our podcast, “Sustainability Strategies to Empower Teams & Suppliers”. Watch Now
In our TYS Podcast episode, Sustainability Strategies to Empower Teams & Suppliers, we spoke with industry leaders from global organizations, delving into the intersection of sustainability, supply chain management, and the global economy.
TYS’s Michelle Armstrong sat down with Lazar Armianov from EcoVadis, Melissa Reddy from BT Sourced, and Alyssa Caddle from Thermo Fisher Scientific, and at the heart of our discussion was the concept of sustainability and its significance in today’s business landscape. From education and compliance to technology and geopolitical challenges, our guests shared valuable insights into the multifaceted nature of sustainability within supply chains.
One key takeaway was the importance of education and awareness, not only within our organizations but also among our suppliers. By ensuring that all stakeholders understand the importance of Environmental, Social, and Governance (ESG) criteria, we can foster a culture of sustainability that extends beyond borders and generations.
Another focal point of the conversation was the need for collaboration and transparency throughout the supply chain. As companies navigate new global regulations and geopolitical shifts, it’s essential to prioritize ethical sourcing and supply chain integrity.
Technology also emerged as a powerful tool in driving sustainability efforts. From AI to cybersecurity, our guests highlighted the role of innovation in creating more efficient and environmentally friendly supply chains.
Based on the rich discussion, here are actionable insights for listeners:
Prioritize education and sustainability initiatives within your organization
Proactively address climate change and compliance challenges
Embrace AI and digital technologies for risk management and supplier experience enhancement
Foster supplier diversity and engagement for long-term sustainability
Strike a balance between compliance and sustainability goals for impactful supply chain management
As we look ahead, the path to sustainability will require ongoing collaboration, innovation, and a shared commitment to responsible business practices. By leveraging the insights shared in this episode, we can pave the way for a more sustainable future for generations to come.
Tomorrow, March 30, is the International Day of Zero Waste—a time to consider the significant challenge of global waste production. Did you know? Every year, humanity generates between 2.1 and 2.3 billion tons of municipal solid waste, posing a severe threat to the health and sustainability of our planet.
Here at TYS, we are dedicated to helping organizations turn the tide against this crisis. Our team has shared ways in which they work toward zero waste, including:
Replant gifted potted plants so they can grow and flourish for years to come
Sew cloth napkins and paperless towels that they use to replace one-item use napkins and paper towels
Use glass or aluminum straws instead of plastic ones
Use bar soap instead of liquid soap that comes in plastic containers
Take reusable totes to the store for shopping
Our TYS solution and approach goes beyond supplier management; it’s about empowering businesses to align with their sustainability goals and make real change happen. Through our advanced blockchain-based solution, we promote ESG accountability, driving collaborative efforts toward a greener future.
Last week, Trust Your Supplier (TYS) joined leaders in sustainability at EcoVadis SUSTAIN 2024, diving into the complexities of compliance and sustainable practices. We’re grateful to EcoVadis and all participants for a forum rich in insights and collaborative spirit.
Key Insights: Simplifying Compliance The call for simplification in the face of growing regulatory complexities was loud and clear. Our blockchain-based solution’s role in streamlining compliance and fostering transparency across supply chains was more relevant than ever. This reinforces our mission to make navigating compliance easier for everyone.
Our Commitment to Guidance and Collaboration The discussions at SUSTAIN 2024 have strengthened our commitment to providing innovative solutions and expert guidance. Emphasizing collaboration, we’re energized to work alongside industry peers and businesses to tackle sustainability and compliance challenges together.
Looking Ahead with Optimism SUSTAIN 2024 was a powerful reminder of our shared goals for a sustainable future. Trust Your Supplier is dedicated to leading the charge in simplifying compliance, ensuring it’s a stepping stone rather than a hurdle. We thank everyone involved for the inspiration and look forward to continued collaboration.
As we move forward, let’s carry the momentum from SUSTAIN 2024 to create a sustainable, compliant world where businesses thrive together.
Interested in seeing how the EcoVadis integration works in TYS? Book a meeting!
While the specific details of the sourcing practices for Super Bowl rings may not be publicly disclosed or standardized across all teams, in recent years, there has been a growing trend in various industries, including jewelry and luxury goods, towards ethical and responsible sourcing of materials.
Many organizations and consumers place increasing importance on sustainability, ethical mining, and fair labor practices. Various certifications, such as the Kimberley Process for diamonds, aim to prevent the trade of conflict diamonds. Additionally, some jewelry companies and manufacturers commit to using recycled metals and responsibly sourced gemstones.
Here’s what a Super Bowl ring creation process looks like when the journey truly begins with a commitment to ethical and responsible material sourcing.
1️⃣ Gold and Platinum Elegance: The materials at the core of these coveted rings are often gold and platinum. The quest for perfection starts with the careful selection of these precious metals. Responsible mining practices and the traceability of the metal’s origin are paramount. This ensures that the journey from the earth to the ring is marked by environmental sensitivity and ethical labor practices.
2️⃣ Diamonds and Gemstones with a Conscience: Adding sparkle to the equation, diamonds and gemstones are chosen with meticulous attention. The focus extends beyond their brilliance to the ethical mining and sourcing of these gems. Conflict-free diamonds, adhering to the Kimberley Process, and responsibly sourced gemstones underscore the commitment to a supply chain free from ethical concerns.
3️⃣ Sustainable Practices: The commitment to sustainability doesn’t end with responsible sourcing. Efforts are made to reduce the environmental footprint throughout the production process. From using recycled metals to implementing energy-efficient manufacturing techniques, the goal is to create a tangible symbol of victory without compromising the planet’s well-being.
4️⃣ Community Impact: Beyond environmental considerations, ethical material sourcing extends to the impact on local communities. Partnerships with communities near mining sites contribute to social development initiatives, ensuring that the journey of creating these rings leaves a positive footprint on the lives of those involved.
5️⃣ Transparency and Certification: To instill confidence in the authenticity and ethical standards of the materials, Super Bowl rings often come with certifications. These certifications not only vouch for quality but also affirm the commitment to responsible and ethical practices, allowing wearers to proudly showcase their rings with a clear conscience.
To determine the exact ethical sourcing practices of Super Bowl rings, you would need to check with the specific teams, manufacturers, or organizations involved in their creation. For any organization, becoming more transparent about their supply chain shows commitment to ethical and sustainable practices. To amplify the impact, collaboration with emerging technology providers like Trust Your Supplier, equipped with compliance and risk management features, ensures a supply chain in harmony with regulatory requirements and industry benchmarks.
When responsibly sourced, these Super Bowl rings become more than mere symbols of victory; they transform into emblems of ethical origins and meaningful community contributions, resonating far beyond the boundaries of the football field. 🏈💎🌍
Continuing my exploration of the Super Bowl supply chain, what becomes of the championship shirts and hats for the losing team? These brand-new garments, seemingly destined for obscurity, lead into the next part of our series, A Second Chance at Glory: Turning Defeat into Compassion and Inspiration.
In a heartwarming twist of fate, the losing team’s championship gear transforms from a symbol of defeat into an extraordinary opportunity for compassion and inspiration. Here’s how this second chance at glory unfolds:
Upon the conclusion of the Super Bowl, humanitarian organizations and charitable foundations swiftly step into action. Partnering with the league or the sports apparel companies responsible for manufacturing the gear, these organizations see beyond the game’s outcome and recognize the transformative potential of these items. The losing team’s championship gear embarks on a new journey, transcending borders to reach communities facing hardships around the world. Whether it’s in regions affected by natural disasters, impoverished areas, or communities dealing with various challenges, the gear becomes a beacon of support and inspiration.
Distributed by these humanitarian organizations, the gear takes on a new purpose: to empower and uplift. T-shirts and hats that once symbolized a moment of disappointment now become symbols of resilience and shared humanity. The recipients, often facing adversity, find warmth and encouragement in the unexpected gift, fostering a sense of community and connection. Each piece of championship gear carries with it the stories of determination, teamwork, and sportsmanship that define the Super Bowl. These narratives resonate with individuals who receive the gear, reminding them that, even in the face of setbacks, there is a shared human spirit that unites us all.
While it’s uplifting to see these garments finding a meaningful second purpose, authentic corporate responsibility begins by ensuring that every procurement decision resonates with a commitment to ethics and sustainability. Visibility into a company’s supplier base is crucial and Trust Your Supplier’s integration with strategic partners, such as EcoVadis, Verisk Maplecroft, Dunn and Bradstreet, and Moody’s Analytics, brings together all the necessary components for procurement organizations that are on the path toward ethical sourcing. In this way, these garments will make an impact on both ends of their life—beginning with sustainable sourcing and concluding with a profound social impact.
As the Super Bowl spectacle unfolds on the field, another grand performance is taking place in the stands and concession areas—a culinary masterpiece of epic proportions. Let’s delve into the food consumed and the waste generated during this colossal event.
Super Bowl Sunday is not just a showdown of athletic prowess; it’s a gastronomic celebration. Millions of fans in the stadium and watching at home indulge in a culinary feast, devouring an astonishing array of food ranging from classic hot dogs and nachos to gourmet treats and stadium specialties. The sheer scale of the Super Bowl translates to mind-boggling food consumption. Think thousands of pizzas, millions of chicken wings, and enough nachos to build a culinary fortress.
Yet, behind the scenes of this culinary symphony lies a challenge—food waste. The sheer volume of meals served, and snacks consumed contributes to a significant amount of waste, including packaging, uneaten portions, and disposable utensils. The challenge is not only to satiate the appetites of millions but also to do so responsibly, minimizing the environmental impact.
In recent years, there’s been a growing awareness of the environmental footprint of major events like the Super Bowl. Stadiums, vendors, and organizers are increasingly adopting sustainable practices, from sourcing compostable utensils to implementing recycling programs. These efforts aim to strike a balance between the grandeur of the occasion and the responsibility to our planet.
Fans, too, play a crucial role. The Super Bowl experience extends beyond the field, and conscious choices by attendees—like using designated recycling bins and opting for eco-friendly alternatives—contribute to the overall sustainability narrative.
The need for conscientious choices echoes far beyond the stadium, reaching into the core of procurement organizations. Trust Your Supplier (TYS), as a pioneer in SaaS blockchain networks, offers invaluable tools and insights for procurement organizations of any size to navigate the labyrinth of ethical choices. By leveraging TYS’s platform, we empower these organizations to make sustainable choices, ensuring that every procurement decision contributes to a dedicated commitment to our planet’s well-being.
Recently, I was on a panel at Wake Forest University, School of Law, NC on this subject, and it triggered my interest in digging deeper into this space. Chainyard has been involved in ESG via its SaaS platform, Trust Your Supplier, since 2020. I occasionally participate in the Hyperledger SIG on Climate Change where many different topics are discussed. The goal of this article is to share my thoughts as I continue to expand upon that knowledge in the coming months.
What is ESG?
ESG expands to Environment, Social, and Governance. There have been many subsets of it in the past, but the current incarnation is a result of concerns about the climate, environment, and social justice. ESG is complemented by DEI which looks at diversity, equity, and inclusion in society and at the workplace.
Businesses have an impact on our Earth. It includes human and machine activity, and the use of natural resources including water, fossil fuels, raw materials, and minerals. These can result in greenhouse gas emissions like CO2, pollution of the air we breathe or water we drink, deplete natural resources, generating vast amounts of waste, etc. The ESG framework measures the degree to which a corporation adheres to sustainable and environmentally responsible practices.
Organizations have relationships with customers, partners, people, and communities. ESG measures the social impact on people both internal to the company and customers and supply chain partners. Many questions arise such as how workers are treated, do they get living wages and good healthcare, are the labor practices acceptable, are the communities they serve benefitting, etc.
Governance refers to a corporation’s management practices related to ethics, regulatory and legal compliance, and transparency in reporting. Companies have to establish policies, procedures, guidelines, and measurement frameworks to achieve these goals. “DEI” or diversity at the workplace, equity in opportunities and wages, and inclusion are all part of governance activities.
According to Moody’s, a 2022 survey of their customers found among other insights,
“Customers also indicated that rising customer expectations, environmental, social, and governance (ESG), and future of work, are the trends expected to affect their business the most”
Saving the Planet
Fixing the damages caused to the environment by human activity requires a multi-pronged approach. Though it is generally accepted that the main contributor to the climate crisis is CO2 emissions, the environment has been seriously injured by many factors; key among them being the disposal of plastics, which is now the major cause of ocean pollution and the extinction of many species.
To address the crisis, there are several projects put in motion by NGOs, governments, and global institutions. Some of them are voluntary and others are imposed by regulation. These projects fall under several categories such as:
Emission Reduction
Carbon Farming and Sequestering
Migration to electrical energy
Transition from Fossil Fuels to Renewable sources
Carbon Offsets and Credits to compensate for emissions
Carbon Insetting through corporate self-improvement initiatives
Plastics Management
Plastic Waste collection, sorting, recycling, and disposal
Discontinue single-use plastic items.
Measuring the impact of micro-plastic pollution
Land and Water Management
Forest management (re-forestation, conservation, and afforestation)
Restoration and protection of coastal wetlands and marine life
Carbon-Friendly Agriculture
Waste Management
Efficient and effective collection, sorting, and recycling of industrial and household waste.
Reprocessing electronic waste to extract valuable metals and reduce the discharge of toxic chemicals into the environment.
Excess inventory sharing by enterprises with others.
Manufacturing products using sustainable processes and raw materials.
We are all familiar with how our government is pushing for a rapid transition to Electric Vehicles (EVs) and renewable energy from wind and solar power.
Carbon Offsetting, Credits, and Insetting
We need to understand what strategies corporations are using to achieve net-zero goals. Corporations make commitments to the industry or the government about becoming carbon neutral or reducing their emissions. In order to meet those targets, they invest in projects that address in part or full those commitments. These projects can be internally triggered, or the corporation can fund third-party projects.
A generic approach followed in the industry
It is generally agreed that 1 offset or credit is equal to 1 metric ton of carbon dioxide emission (CO2e). A typical tree planted in a reforestation program takes about 40 years to sequester 1 metric ton of carbon. The same amount is roughly emitted by an automobile in about 3 to 12 weeks.
Carbon Offsetting
Carbon offsetting is a mechanism by which a company that has been emitting CO2 and is not yet ready to fix its process, technology, and operations, funds offsetting projects in the voluntary carbon market (VCM). For example, ACME Corp. which has been emitting 100 metric tons of CO2 could invest in the MOSS Project which supports the preservation of the Amazon rain forests to offset its emissions. For a novice, offsetting works as shown.
Carbon Offsetting – High-Level Flow
Some typical projects include:
Forest conservation
Wind farms, hydropower projects, solar power plants
Other renewable energy projects such as fusion
Landfill gas capture and management
Providing energy-efficient appliances to local communities such as the recent push in NY To ban gas stoves.
Farm power, methane capture, and biogas production, something very common in Asia and Africa
Waste management
Carbon Credits
These are regulated credits also referred to as Cap-n-Trade. The Government or the Regulatory Body sets caps on carbon emissions which translate into “Emission Allowances”. These allowances are available for purchase as “Carbon Credits. Business entitiespurchase “Carbon Credits based on assigned emission allowances. These allowances are gradually reduced over time to realize tangible emission reductions.
Carbon Credits Model
Carbon Insetting
Insetting refers to a Business Entity reducing its own emissions through the adoption of new technology, optimizing supply-chain processes and practices, and improving efficiency. Insetting is more important as it enables a company to take ownership and responsibility for its emissions.
Insetting
Actions a company may take include deriving more of its energy from renewable sources, management of resources such as water and raw materials, and enforcing ESG across their upstream and downstream partners.
Key issues in the Measurement and Reporting of ESG initiatives
Currently, there are many projects by various organizations in the voluntary carbon market. There is no consistent way to verify if these projects are genuine and truly deliver the benefits they promise. Some of the issues are:
Consistency in the application of policies and regulations
No single or integrated verifiable and trusted project registry
Too much focus on CO2 emissions though the environment is harmed by various other activities.
Potential Double Spend problem (accounting of credits and offsets)
Traceability of Offsets & Credits throughout their lifecycle from issuance to retirement
Transparency of project status and benefits
Consistent and verifiable (regulatory) reporting
Why Blockchain?
Blockchains have a bad reputation for being energy-intensive, and thus not climate or carbon friendly. Well, that comes from Bitcoin mining and other public blockchains that supported the proof-of-work (PoW) consensus protocol. PoW is very CPU intensive and consumes a lot of energy to solve a mathematical challenge essential for block verification and earning crypto. However, most other blockchains support better protocols such as proof-of-stake, BFT, or proof-of-authority which are much more energy friendly.
A blockchain is a valuable tool that can help address many issues. It extends enterprise solutions and can work cohesively with IOT and AI/ML technologies.
An immutable record of data enables “track and trace” of projects, the provenance of lifecycle events, and transparency. All this depends on stakeholders including applications and things recording data into the ledgers.
Smart Contracts can help with governance, enforcing policies and business rules, and managing tokens issued as offsets, credits, and incentives.
Decentralized Identity is a relatively new concept and can be applied to projects, people, organizations, and things. Every project can be assigned a DID and tagged with verifiable credentials by bodies such as Carbon Action Reserve, Verra, and the like. DIDs are cryptographically verifiable, universally resolvable, and enable Proof-of-Existence and Proof-of-Verification
Consensus protocols such as Proof-of-Stake allow validators to verify transactions and maintain consistency and integrity of the ledger
Privacy and Anonymity are very important for organizations. Using encryption and secrets, organizations can be transparent about their commitments and actions, yet implement privacy and confidentiality to avoid exposing their business secrets and intellectual property.
Three use case patterns where blockchain can augment ESG initiatives are:
Provenance, and Track & Trace of ESG Projects
Facilitating the trading and trustable record-keeping of Carbon offsets and credits (tokens)
Supporting risk, audit, and compliance reporting
These patterns cut across many domains such as supply chain, health care, real estate, and energy,
Organizations and Bodies involved with Sustainability Initiatives
It was enlightening to see the number of organizations and companies involved with climate initiatives and ESG.
Some of the notable ones are:
Verra is one of the most recognized and trusted providers of standards and guidelines for sustainable development. The Verra registry is a repository of certified and verified projects.
Climate Action Reserve is approved to serve as an Offset Project Registry (OPR) for the Compliance Offset Program under California’s Cap-and-Trade Program. They also maintain project registries and support various carbon offset programs.
GHG Protocol According to their website they provide standards, guidance, tools, and training for businesses and governments to measure and manage climate-warming emissions. One can download worksheets and tools to measure and record carbon emissions footprint.
The Gold Standard is another reputed and recognized organization that provides standards, verifies and certifies carbon projects, and maintains project registries.
Other organizations include
American Carbon Registry
CSA Group Registries
Climate, Community & Biodiversity (CCB) Standards: Certification to the Climate, Community & Biodiversity (CCB) Standards demonstrates that a project simultaneously addresses climate change, supports local communities and smallholders, and conserves biodiversity
Task Force on Climate-related Financial Disclosures (TCFD) – Increased reporting of climate-related financial information.
Verra – SD-VISta The Sustainable Development Verified Impact Standard (SD VISta) – Premier standard for certifying the real-world benefits of social and environmental projects, from gender equity and economic development to affordable clean energy and restoration of wildlife.
The United Nations’ Sustainable Development Goal 7 (SDG 7) focuses on reliable and clean energy modern energy services, as defined in its Target 7.1
Paris Accord on Scope 1/2/3 reporting
United States – Environmental Protection Agency
European Commission (2020) Circular Economy Action Plan
Open Earth Foundation
Hyperledger Foundation – Climate SIG
Many projects support ESG such as the MOSS Project, Toucan, Plastic Bank, Save The Planet, Klim DAO, and Greenly. The notable ones that need mentioning are:
Trust Your Supplier – Chainyard is a SaaS blockchain network focused on supplier risk and qualification. Workflows help customers capture supplier ESG initiatives and actions and get them verified through third-party verifiers who provide ESG rating scores.
TYS Captured ESG Information
TYS has standardized the information capture to gather ESG information that can be used by organizations to support Scope 1 & 2 reporting today, and a goal of Scope 3 in the future.
Title Chain – Borsetta is an evolving network that enables asset track and tracing of energy micro-grids, helps secure their title, and tokenizes the grid and energy production among other functions. Though it is not directly related to ESG, it mainly targets microgrids that support renewable energy ecosystems, including the energy they produce and the excess quantity sold to the national grid. Microgrids serve campuses and are seen as the future of community-driven energy production.
Digital Credentials for Carbon Accounting is an initiative by the British Columbia government in Canada. The initiative known as “Traction” set up under the Energy & Mines Digital Trust supports the BC Government’s requirement for certified annual sustainability reporting. The solution is built on a blockchain platform based on Hyperledger Aries and Indy and leverages the Decentralized Identity (DID) standards protocol. The mining companies collect data for sustainability reporting, which is verified by organizations such as PWC resulting in the issuance of a Verifiable Credential that can be shared with the government.
ESG and Blockchain (A conceptual architecture)
Earlier in this article, we discussed how a blockchain complements ESG solutions. Can blockchain add value beyond Carbon Offsets and Credits? Yes, there are many reasons.
The Blockchain can serve as an ESG BUS providing access to various services such as project verification and tokenization
Many institutions maintain verifiable registries of carbon projects, some enabled by blockchains, and others provide APIs. A decentralized identifier can be assigned to every project. Decentralized identifiers are a W3C-enabled standard and specification to define the structure, attributes, and architecture of DID and its constituents. DIDs are universally resolvable to “DID DOCS” which are JSON documents present authentication schemes, digital signatures, and service endpoints to access various aspects and details about the project.
The blockchain can record hashes (aka digital fingerprints) of data received from IoT sensors that track emissions or watch human activity, thus providing immutable tamper-evident proofs for later audit.
Carbon offsets and credits are offered by various organizations. A unified solution can act as an interface for enterprise blockchain to have access to those marketplaces and exchanges.
Enterprises having insetting programs can record the lifecycle of their projects against commitments, thus offering transparency into their programs. Solutions such as TYS capture and/or process such information in their risk assessment workflows. Blockchain “Oracles” assist in making those connections and ensuring the reliability of the source and the received data.
AI ML algorithms and third-party rating providers can calculate ESG scores. which can be recorded with proofs and signatures. Today many companies such as Bloomberg, Ecovadis, CDP, Moody’s, D&B, S&P Global, and other analytics firms provide the service and can secure their ratings on a trusted decentralized ledger.
Lastly, both enterprise and public blockchains have a role to play.
Summary
Governments across the world and global conferences such as the World Economic Forum-Davos, United Nations Climate Conferences held in Kyoto and Paris, and UN Climate Action i.e. COP27 are focused on actions to address climate change. The “E” in ESG is not just limited to carbon emissions but includes plastic waste and other human and industrial waste, non-carbon pollutants. and management of our forests, coastal and marine life. While Carbon offsets have been used as a tool by individuals and industries, it does not make them responsible for their actions. The impact of offset projects has been difficult to measure and report. Insetting as a goal puts more responsibility and accountability on corporations to improve their process and technology. Blockchains can help bring more trust, transparency, accountability, and compliance to ESG management. Also, it is unclear, how much of the geo-political events and industrial disasters are taken into account such as the war in Ukraine, the Norfolk Southern toxic spill in Ohio, or the dairy explosion that occurred in Texas.
About Chainyard
Chainyard is a boutique blockchain consulting and advisory firm based in Morrisville, NC. As the first Hyperledger Certified Service Provider, it has executed over 50+ projects. Chainyard’s Trust Your Supplier enables supplier risk assessment and qualification including ESG-related risks. To learn more, please send me an email or visit our website.
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