Sustainability takes center stage as greater awareness of greenhouse gas emissions is becoming a global demand. Environmental responsibility is no longer a distant goal but a real expectation from organizations as they become obligated to comply with regulatory requirements. KPMG’s Climate Accounting Infrastructure is a technology based on blockchain, which KPMG’s clients will use to keep a tab on their greenhouse gas emissions.
The initiative is launched to help organizations better measure, mitigate, report offset climate-changing emissions. It aims to bring down greenhouse emissions and, subsequently, their environmental footprint even amidst running operations and performance.
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’s US Blockchain Leader
The CAI technology works to offset an organization’s emission records, real-time environment data, and analytics on the blockchain, integrated with functioning systems, including IoT sensors and external data sources. This will be used to model the effects of climate change risk on the organization’s financial health, success, and asset valuations, giving way for future financial planning. KPMG is working with many companies to bring the CAI’s capabilities in the market.
Mike Hayes, KPMG Global Renewables Leader, had this to say about global business efforts to bring company finances and environmental implications on the same footing.
Modernizing ESG (environmental, social, and corporate governance) practices is becoming a priority for every industry. From energy to technology, 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.
KPMG’s Climate Accounting Infrastructure is awaiting patent but is not their only enterprise blockchain innovation. KPMG is working towards marketing the technology and to make it a success. To achieve this, KPMG has sought the help of blockchain and climate technology companies.
Some of its collaborations include Context Labs, a blockchain company known for ‘Immutably.’ It is a data fabric platform which translates environmental, operational, and financial information into AlphaESG signals through machine-learning models.
Prescriptive Data, a smart building company, and Allinfra, another Ethereum based technology company in infrastructure finance, have also joined hands with KPMG to market the product.
KPMG is one of the big four accounting firms with a large client base and businesses under its wing. As carbon emissions requirements are becoming more relevant, many organizations understand its importance too. Technologies like the CAI enable accurate reporting of carbon emissions data making enterprises climate-sensitive and eco-conscious now and in the long run. KPMG’s offering provides two-way benefits both to the environment as well as organizations.