KPMG has announced a new blockchain-based functionality to help measure, mitigate, report and offset greenhouse gas emissions.
The new feature, called Climate Accounting Infrastructure (CAI), is patent pending and will be targeted at organisations required to report on Environmental, Social and Corporate Governance (ESG).
The aim is to ensure transparent and reliable communication of emissions data, and to achieve this CAI will integrate existing systems with external data sources to keep a verifiable track of emissions on blockchain.
The data will be stored on blockchain in a way that makes it unassailable, so that it can be used securely for example for climate risk assessments of organisations and asset assessments.
In the long term, the aim is also to help organisations build sustainable financial and business strategies using global business forecasts.
CAI will accurately measure greenhouse gas emissions, analyse huge amounts of structured and unstructured environmental data, protect this data on a blockchain and use machine learning and other artificial intelligence strategies to create risk models and reconcile data sources. In addition, the data can be verified in real time.
KPMG is one of the world’s leading professional services companies, providing business solutions, audit and tax services, and consulting to many large organizations around the world.
It operates in 147 countries with over 219,000 employees in various member companies around the world.
KPMG’s U.S. Blockchain leader, Arun Ghosh, said:
“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.”
KPMG’s Global Renewables leader, Mike Hayes, added:
“Modernizing ESG practices is becoming a priority for every industry, from energy to technology to healthcare to retail, to support both financial performance and resilience. As a result, global organizations are looking to integrate environmental and financial risks associated with the cost of carbon into their real estate portfolio approach, using emerging technologies to validate their data and strategy“.
