KPMG Reveals Blockchain to Counterbalance the Greenhouse Gas Emission
KPMG -Global Climate Response launched in 2008 governs the environmental impact across its firms with the target of a 10% emission reduction and 60% of purchased electricity from global renewable energy sources by 2020. To prove its sustainability, it records the net carbon emission per FTE 27% since 2010, and 46% of purchased electricity is from renewable sources in 2018. Most of KPMG firms achieved carbon neutrality and 100% renewable energy, whilst KPMG US targets 100% renewable energy by 2020.
The patent-pending capability, known as ‘Climate Accounting Infrastructure’ (CAI) amalgamate with the company’s subsist system, including IoT sensors, with external data compliance to establish a verifiable data trial emissions recorded on the blockchain. CAI helps organizations to measure, report, and counterbalance the emission of greenhouse gas. The accounting giant collaborates with data provenance, and tracking providers context labs, prescriptive data, and blockchain firm Allinfra on this product to get the initiative to take off.
What is Greenhouse Gas?
Any gas that has the property of absorbing infrared radiation (net heat energy) emitted from Earth’s surface and reradiating it back to Earth’s surface, thus contributing to the greenhouse effect. Carbon dioxide(CO2), methane(CH4), Nitrous Oxide(N2O), Ozone(O3), and water vapor(H2O) are the most important greenhouse gases. It absorbs and emits radiant energy within the thermal infrared range which causes the greenhouse effect on planets.
How Blockchain Technology Incept Greenhouse Gas Emission?
A big hypothesis between the capital market investors and consumers is that they need to submit the report of sustainability practices and results to meet environmental, social and corporate governance(ESG) demands,” on the other side carbon emission requirements continue to evolve and expand. To achieve these demands, both enterprises and objectives need a trusted and transparent system to account, report and measure the emission of data.
Blockchain is the best source meant for sustainability and data privacy with security. This capability helps to store environment data securely in a financial system enclosed with climate risk assessments, and asset valuations, including as part of their real estate portfolios. It will help forecast long term business strategy and aid to business to be sustainable. Before a month ago, as the publication from KPMG reported, Ripple committed to becoming carbon net-zero by 2030, claiming to be the first blockchain company., it also added ‘urging all crypto players to hold themselves accountable – monitoring their energy consumption to make greener choices.’
The Blockchain-based capability, Climate Accounting Infrastructure, which is purposeful to help organization can also examine climate risk associated with asset valuations, and evaluate to help organizations and also utilize systems to offset emissions.
Blockchain Alliance CAI and AI
To get an accurate measurement of gas emissions, the CAI will analyze a huge amount of structured and unstructured environmental data, secured that on a blockchain, then with help of machine learning and Artificial Intelligence(AI) strategy it will perform risk modeling and accommodate across data sources. The organizations and their collaborator will be able to verify data cryptographically, in real-time.
“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. Trusted reporting capabilities, such as those enabled by Climate Accounting Infrastructure, will be critical to meet stakeholder expectations and to comply with emerging regulations,” said Arun Ghosh, KPMG US blockchain leader in a statement.
Image Source: National Geography