Big Four accounting firm KPMG is positioning a new blockchain-based accounting capability to help companies in their efforts to reduce their environmental footprint.
On October 6, KPMG announced a patent-pending blockchain-based capability, the Climate Accounting Infrastructure (CAI). The initiative aims to help organizations better measure, mitigate, report, and offset climate-changing emissions, according to a KPMG press release.
CAI will track an organization's emissions and offset records on a blockchain, which will be integrated into an organization's existing systems. Real-time environmental data and advanced blockchain-based analytics will be recorded on CAI as well to model the impact of climate risks on financial performance, according to the firm.
The rationale behind the project is that capital market investors and consumers increasingly expect organizations to meet environmental, social, and corporate governance demands (ESG). To meet those expectations, KPMG is positioning the Blockchain technology to track sustainability and comply with climate change legislation.
"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 U.S. Blockchain leader, in a statement.
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