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Professional services provider Ernst & Young (EY) said it has rolled out the beta version of a blockchain platform that allows enterprises to keep tabs on their carbon footprint. Built on Ethereum, EY expects the platform to help its enterprise clients tokenize their products’ CO2 emissions (CO2e).
EY Plans to Tokenize Products’ Emission
EY, a UK firm providing professional services, announced on Wednesday the launch of EY OpsChain ESG – a blockchain-based platform that enables enterprises to track and measure their CO2e. The solution, built on the Ethereum blockchain, is currently available in beta version on the EY Blockchain SaaS platform.
The EY OpsChain ESG platform “will also provide consumers, business partners and regulators with the transparency they demand via a trusted platform for emissions and carbon credit traceability within an ecosystem through the use of tokenization,” EY said in the press release.
Additionally, by tokenizing products’ emissions, the platform provides enterprises with clear insights into their carbon footprint, allowing them to make better-informed decisions on their future environmental, social, and governance (ESG) journey. EY OpsChain ESG is built in line with the standards of InterWork Alliance for Carbon Emissions Tokens, enabling businesses to issue immutable reports on their current CO2 emissions. Ultimately, the platform also allows enterprises to “demonstrate authenticity of the carbon offsets” used to lower their impact on their environment as they cut their CO2e.
Why are Enterprises Tapping Blockchain and DLT Technologies to Track CO2e?
EY’s latest product is the latest example of how enterprises continue to tap blockchain technology to track their CO2 emissions and credits and other parts of their workflows.
Thanks to the decentralized and transparent nature of the blockchain and distributed ledger technology (DLT), enterprises can create a secure and unchangeable record of their emissions data, allowing for greater accountability and transparency in their ESG efforts. This makes it easier for companies to meet regulatory requirements, reduce their carbon footprint, and build trust with stakeholders by demonstrating their commitment to environmental sustainability.
Meanwhile, blockchain-related firms are also making efforts to trim their carbon footprint. A recent study by Forex Suggest showed that Ethereum’s CO2 emissions fell to 8,824 tons from 21.95 million tons in just a year, mainly due to the Merge upgrade in September that moved Ethereum from the proof-of-work (POW) to the proof-of-stake (POS) model.
Do you think we will see more non-crypto firms turn to blockchain technology to track some of their workflow elements in the future? Let us know in the comments below.