Tech firm Finboot calls on companies to tighten ESG reporting with blockchain

As regulators around the world introduce stricter rules to achieve net-zero goals, and simultaneously crack down on green-washing, and accelerate circularity, public and private sector organisations increasingly have to demonstrate, backed up with verifiable data and proof points, their compliance.

In June the International Sustainability Standards Board (ISSB), (announced at COP26 in Glasgow 2021), published its Financial Disclosure around sustainability and Climate-related Disclosure standards. Under these ISSB rules, companies will need to disclose emissions (scopes one to three), that will be checked by external auditors. As more than more than 100 countries adopt its parent body, the IFRS’s accounting rules – widespread adoption is anticipated and a de-facto global standard set.

In July, as part of the European green deal, the EU launched its European Sustainability Reporting Standards (ESRS). These ESRS have been adopted by the EU Commission and will be rolled out across 27 EU member states in the coming months. The EU has said the ESRS will be compatible with ISSB.

On 18 September at Climate Week NYC 2023 the Taskforce on Nature-related Financial Disclosures (TNFD) will publish its recommendations. The latest TNFD framework also redefines scope one, two and three emissions reporting for use in nature, covering direct operations, upstream, downstream and financed impacts. Draft guidance has also been included on the use of scenario analysis for nature-related issues. The final draft also draws on other relevant standards including the International Sustainability Standards Board (ISSB) and the Global Reporting Initiative (GRI) – both of which were knowledge partners to the TNFD.

In this way 2023, as the myriad of acronyms above attest, the worldwide regulations around ESG reporting, net zero, circularity and traceability are ratcheting up – and fast. Blockchain can provide a secure and transparent method for recording and verifying data, helping companies meet these regulatory requirements.

Dr Bettina Uhlich, former CIO at German chemical giant, Evonik, commented: “Doing nothing is not an option. With these multiple and interlocking global regulations in the pipeline organisations need to move at pace to digitise their operations and supply chains so they can evidence compliance.”

Juan Miguel Perez, CEO and Co-Founder, Finboot, added: “In simple language, the regulations being rolled out across the globe are designed to help regulators push organisations to adopt a more net zero and circular approach and bear down on greenwashing.

“Blockchain can help.”

“Blockchain provides transparent and immutable, verifiable data, to satisfy the multitudinous demands of regulators.”