Victor Ugochukwu · Dec 14, 2020 . 5min read
KPMG launches Blockchain-based climate accounting infrastructure solution
KPMG's CAI solution utilizes blockchain technology to track greenhouse gas emissions securely for its clients.
By Komal Joshi · Oct 9, 2020 . 5min read
KPMG, an international accounting giant, has recently revealed its blockchain-based Climate Accounting Infrastructure (CAI) solution. It permits KPMG’s clients to measure and manage their greenhouse gas emissions more precisely. The new blockchain platform addresses the growing demand for companies to report sustainability practices and adhere to environmental, social, and corporate governance (ESG) targets.
In order to support reliable and transparent reports of data emissions, CAI will combine organizations enduring systems with external data sources to build a verifiable way of emissions and offsets recorder on the blockchain. Other data and analytical models will describe the impact of climate risks on business operations and financial performance.
KPMG collaborated with several firms for CAI
KPMG has formed a collaboration with Context Labs, Prescriptive Data, and Allinfra for the project. Context Labs offers data provenance reinforcing from where the data came. Prescriptive Data has a software solution that follows building operations, including power consumption and emissions utilizing IoT devices. Moreover, Allinfra is a blockchain firm that strives to tokenize infrastructure and environmental assets.
Arun Ghosh, KPMG’s U.S. blockchain leader, says that blockchain stores the data in a transparent and trustworthy manner. This will also comply with the merging regulations and satisfying the expectations of the stakeholders.
Blockchain’s use cases for tracking greenhouse gas emissions.
However, KPMG is not the first to launch a solution relating to transparent reporting of greenhouse gas emissions. This year, Mercedes-Benz revealed operating with blockchain startup Circulor on tracing CO2 emissions in the cobalt supply chain. Moreover, Circulor has formed an association with Volvo on similar projects.
Additionally, the Interwork Alliance focuses on token standards for carbon credits. Its membership comprises Microsoft, Accenture, and blockchain energy firms. Meantime, KPMG’s introduction into this market may prominently extend the reach of blockchain CO2 traceability technology due to the company’s extensive and diverse client list.
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