We often hear business leaders call for transparency in energy and power byproduct emissions. Tomorrow’s world will be one powered by zero-emission fuels, clean energy sources and non-emissions processes, but as companies explain, none of this will be achieved without proper measurement, reporting and ultimately action. you can’t.
Tackling that first step requires a unique level of security. And discussions about blockchain as an enabler of data storage for transparency have been brought up many times in this regard.
Without overusing the word, blockchain provides an immutable record of data that informs generations of businesses in a reliable way, such as books being published that record important events in history. can. In fact, I would dare to say that blockchain can be used as a modern information library, a place where data resides and, unlike books, cannot be removed from the bookshelf.
In this regard, organizations can leverage the wealth of trusted insights stored in distributed digital ledgers, opening the door to more accurate emissions reduction efforts.
Using blockchain for energy transparency
So how exactly is blockchain used to democratize data in the renewable energy sector? Clare Adelgren, Global Head of Blockchain Operations at EY, explains more about its applications .
“Blockchain technology has made great strides in recent years, but we must remember that we are only at the very beginning of this exciting journey. This is especially true for the energy sector.” Adelgren says.
“While there are some interesting parallels with the renewable energy sector, which has grown steadily over the past 20 years, there is still a huge amount of work to do before reaching the goals of the 2050 Paris Agreement. International Energy Agency (IEA) estimates that growth will need to double to maintain the target and that if this accelerates, two-thirds of the electricity generated in 2030 will come from renewable sources. Masu.”
While blockchain is not necessarily a silver bullet for energy decarbonization, the importance of trusted data in the process puts the ledger in a desirable position. Perhaps this will become a new database of the world, an encyclopedia of the progress of business and government.
“Companies are feeling increased pressure from government mandates and consumers,” Aldegren explains. “Today, it is not enough to just pledge a net-zero goal; companies need to convincingly demonstrate how they will achieve their goals and report on their progress. It serves as an easy-to-use digital database system that does just that.”
Adelgren elaborates on this: “But for most companies, net-zero targets will require both the ability to reduce emissions and establish a genuine source of carbon credits to offset the rest. To ultimately succeed , transparency and independent verification both play a key role and must establish trust with all ecosystem stakeholders.”
This is where Adelgren positions future blockchains as not only a trusted source, but also a secure one. Your data remains intact and in the most reliable format.
“Public blockchains stand out for the benefits they bring. Their inherent immutability is key, establishing an important foundation of trust. When data is shared on a public distributed ledger, organizations It can also create much-needed transparency.”
Being transparent means keeping your data safe
The very nature of blockchain as a decentralized system is said to be the reason for its tremendous security and reliability. Matching current transactions with previous data not only stores information on the blockchain, but also traces it to its origins.
“When a new transaction is created, it is matched against the endpoints of previous transactions, creating a consensus-validated chain of events,” Aldegren says. “Because of this continuous chain, blockchains are often considered to be highly secure against the risk of tampering. This argument is only valid in the context of public blockchains.”
OpsChain ESG by EY
EY’s OpsChain ESG is a cutting-edge blockchain platform designed to enhance ESG reporting and transparency. This allows organizations to securely track and share their ESG data, promoting sustainability and responsible business practices.
“Our EY OpsChain ESG solution has a particular focus on delivering transparency in emissions and carbon credits,” explains Aldegran.
With its innovative features, OpsChain ESG helps companies address the evolving landscape of ESG compliance and impact measurement.
“Built on the InterWork Alliance data standard for carbon emissions tracking, EY OpsChain ESG allows companies to track and report Scope 1, 2, or 3 emissions data at the product level.Similarly, Organizations can also tokenize their carbon offset data to further increase transparency.”
And as new businesses continue to enter this space, blockchain offers an opportunity to get off to the right start. Established organizations seeking to paint a truly reliable picture of their emissions contributions will be presented with a much more complex picture than start-up organizations that record data in public digital spaces from the start. .
“For a renewable energy sector with such a diverse range of players, many of them start-ups with new business models, blockchain technology allows organizations to track data from disparate sources and verify its origins. , it gives you peace of mind when you know that, you can’t change it,” Adelgren added.
From a physical security perspective, blockchain is praised by many for its reliable and resilient properties. Adelgren explains that there are “several ways in which blockchain technology can help companies achieve their net-zero goals and make measurable progress.”
She continues: “Immutable reporting on a company’s current emissions levels, independently verifiable through the integration of leading emissions verification tools, enables organizations to track emissions through their supply chain and accelerate plans to net zero. You can make informed decisions.”
Traceability is key to corporate sustainability, and blockchain can build a data trail that leads companies back to their roots.
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