KPMG Unveils Blockchain-Based Climate Accounting Tool To Help Drive Environmental Sustainability
Multinational professional services firm and one of the Big four auditing firms, KPMG is set to offer a blockchain-based tool dubbed the Climate Accounting Infrastructure (CAI) to help organizations more accurately measure, mitigate, report, and offset their greenhouse gas emissions.
Per the official KPMG announcement, the patent-pending Climate Accounting Infrastructure will be able to analyze climate risks associated with asset valuations and help organizations better assess and employ systems to offset their emissions.
The CAI as noted by the company will come in handy in helping organizations to meet their sustainability practice goals alongside helping them in the much-anticipated reporting of the sustainability practices each firm is expected to demonstrate in alignment with the environmental, social, and corporate governance (ESG) demands of capital markets investors.
The capability will use blockchain to securely store environmental data in a financial system as part of organizations’ climate risk assessments and asset valuations, including as part of their real estate portfolios. The capability will thus present a trusted and transparent system to measure, account for, and report on emissions data.
Arun Ghosh, KPMG's US Blockchain leader said in a statement:
"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 has been very prominent in rolling out blockchain-based innovations for more functional enterprise integration. Besides announcing the launch of its patent-pending crypto analytics platform to streamline crypto-related services for financial services and FinTech companies back in June, the company currently has in operation a blockchain-enabled track and trace platform dubbed KPMG Origins in Australia, China, and Japan. The track and trace blockchain infrastructure find strong use in the supply chain industry to enhance global trade.
Image source: Shutterstock