Belgian-based Blockchain Platform as a Service company SettleMint and Swiss-based consultancy Finhub360 have developed a new joint offer to help organizations navigate the complexity of Environmental, Social & Governance (ESG) strategy and reporting through the use of blockchain and distributed ledger technologies (DLT).
Focusing on commitments related to the Paris Agreement, the European Green Deal, various net zero initiatives, as well as the UN’s 17 Sustainable Development Goals (SDGs), their 7-step process – which is being piloted by Finhub360 – enables organizations to identify critical use cases where blockchain and DLT can bring the most value, and quickly and easily develop the required strategy and framework to help them meet regulatory and other requirements.
As well accelerating the integration of ESG criteria in policies, practices and performance – at a time when complexity often acts as a barrier to action – and enabling robust and real-time monitoring, DLT-based frameworks offer inherent immutability that prevents “greenwashing” and “whitewashing” and serves to increase trust and credibility among stakeholders.
Sustainable development and climate action are not new concepts, but it wasn’t until 2015 that the Paris Agreement and the United Nations 2030 Agenda, with its 17 interlinked Sustainable Development Goals (SDGs), shone a much-needed spotlight on the urgent need for global change. In subsequent years, the European Green Deal and various “net zero” initiatives have also laid out clear guidance on achieving specific ESG objectives.
Under increasing public pressure, governments around the world have introduced mandatory ESG disclosures, meaning organizations can no longer take a passive approach to ESG. Even beyond these requirements, it’s clearly in organizations’ interest to play an active role in securing a better future – a recent McKinsey study found that ESG can bring real business value, from cost reductions and enhanced return on investment, to greater employee satisfaction and productivity, and increased growth opportunities in a marketplace where sustainability matters more than ever.
However, the sheer scale and complexity of the issues at hand have made it difficult for many organizations to know where and how to start making a difference. How to identify which actions will have the biggest impact? How to ensure accurate, real-time monitoring and reporting? How to ensure processes are fully auditable?
Technology and sustainability may not always go hand-in-hand, but now, at a time when collaborative action is crucial, technology in the form of blockchain and distributed ledger technologies may become a true enabler for sustainability.
Opportunities to accelerate action
While blockchain technology is most often associated with the financial sector, use cases for distributed ledger technology in the realm of ESG have revealed its potential to revolutionize this space, e.g. tokenization of forests for trading as carbon offsets, food provenance to protect endangered species, certificates of origin for green power, global logistics capacity trading, power sharing, rewards for GHG reductions, combating counterfeit goods, and much more.
Blockchain technology’s ability to track, trace, store, and securely share the data that underpins the implementation and success of sustainability projects, programs, and policies means this emerging technology is uniquely positioned to transform the way we address looming global challenges – read SettleMint’s minibook Enterprise Blockchain for a Sustainable Future for more on how blockchain can act as an enabler for sustainability, help businesses meet their sustainability goals, and contribute to a better future.
Consistent, immutable, auditable ESG data allows for an unprecedented level of transparency, ensuring a fairer playing field, and giving investors, employees and consumers real choice in deciding who to invest in, work for and buy from. Organizations that embrace their responsibility in this way, and adopt a new way of thinking about “good” growth are likely to enjoy a wealth of new opportunities.
Developing a DLT-based ESG strategy in 7 steps
By combining the power of their complementary expertise, SettleMint and Finhub360 are helping organizations maximise the impact of ESG through the use of blockchain technology. Through a 7-step process, piloted by Finhub360, organizations follow a 360° journey to develop the strategic ESG roadmap and framework needed to achieve their ESG goals and meet necessary reporting and disclosure requirements.
The analytical, step-by-step approach ensures that the right priorities are identified to drive real impact, that ownership and accountability are established, and that the underlying initiatives can be implemented and scaled rapidly.
The identified initiatives are powered by SettleMint’s low-code blockchain platform, which makes it possible to develop and implement blockchain-based applications in a matter of weeks. SettleMint also acts as technological partner throughout the entire implementation, offering invaluable support to ensure a successful deployment that maximizes the impact.
“The time for action is now, and blockchain technology can play an integral role in supporting ESG strategies and initiatives. By combining Finhub360’s expert guidance with SettleMint’s low-code blockchain platform, organizations can identify critical use cases and rapidly develop and implement blockchain-based initiatives that demonstrate their sustainability commitments and actions in a transparent way.”
SettleMint offers infrastructure and developer tools that greatly simplify the blockchain journey for organisations. SettleMint’s proprietary low-code solution provides organisations and consortia with a reliable, scalable foundation to build upon and tools for developing, deploying, monitoring and debugging blockchain applications. SettleMint provides the necessary professional infrastructure for organisations to reduce the time and complexity of building and integrating the next generation of game changing blockchain solutions.
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Finhub 360 advisors gmbh is a partnership of expert advisors from different industries, driven by a passion to make the world more sustainable through technology. Based in Switzerland, and operating globally, Finhub360 helps organizations leverage digital ledger technologies (DLT), Artificial Intelligence (AI) and financial technology to bridge the gap between business goals and ESG goals.
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