Blockchain-based carbon accounting for organisations has a new patent-pending solution from KPMG.
Climate Accounting Infrastructure is designed to help organisations more accurately measure and report their greenhouse gas emissions. The solution will also analyse climate risks associated with asset valuations for emission offsetting.
Organisations across all sectors are having to document their sustainability practices and results to meet environmental, social and corporate governance demands. At the same time, carbon emissions requirements continue to evolve and expand. To achieve both enterprise and compliance objectives, a trusted and transparent system for accounting on emissions data is needed.
Arun Ghosh, KPMG’s US Blockchain leader, said: “Organisations are increasing efforts to reducing carbon footprints, alongside transparent disclosure of progress.
“Trusted reporting capabilities will be critical to meet stakeholder expectations and to comply with emerging regulations.”
Climate Accounting Infrastructure integrates an organisation’s existing systems, including IoT sensors, with external data sources to establish a verifiable trail of emissions and offsets recorded on blockchain. It is also intended to help organisations build long-term financial and business strategies and aid with overall business forecasting.
With blockchain the environmental data can be stored securely in a financial system as part of organisations’ climate risk assessments and asset valuations, including as part of their real estate portfolios.
To bring Climate Accounting Infrastructure capabilities to market, KPMG is working with industry groups and large technology players as well as climate technology companies including Context Labs, Prescriptive Data and Allinfra.
Context Labs enriches emissions data with environmental context to support advanced emissions analytics and insights.
Prescriptive Data supports verifiable emissions data across real estate portfolios with their intelligent building software, Nantum OS.
Allinfra enables end-to-end integration across the carbon offset demand model by providing a verified supply of carbon offsets and renewable energy certificates.