The need for organizations to raise their ESG standards and demonstrate accountability has become an ethical and strategic imperative. Transparency in sustainable reporting is a challenge for companies and auditors.
However, today business success is linked to reputation and trust, and this could lead many companies to increase greenwashing practices, misrepresenting sustainability and environmental practices to embellish the corporate image. Companies often run into false declarations because they do not have adequate tools to manage an impressive amount of data and correctly return it to consumers and auditors. Traent has developed the solution to all of this. Companies can finally easily show that their commitment to sustainability is true.
Why sustainability is so important?
Deloitte’s 2023 sustainability report shows how the issue of climate change is close to the heart of C-levels globally. This aspect is included as the top 3 issues and the data tells us:
- 61% of respondents said climate change will have a high impact on the organization’s strategy over the next three years;
- 75% said their organizations had increased their sustainability investments over the past years.
In the ESG range, the environment is only one point on which to work, together with the social and governance aspects. These points answer different questions: what is an organization doing to protect the environment? What is an organization doing to improve life? What is an organization doing to reduce corruption and ensure sustainable investments?
In 2021, the G7 Finance Ministers announced their willingness to make climate-related reporting mandatory. This decision is in line with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD).
Currently, there is still no universal standard for ESG reporting. This exists in the form of voluntary standards, regional reporting, and national legislation that vary significantly. In fact, the TCFD:
“developed a framework to help public companies and other organizations more effectively disclose climate-related risks and opportunities through existing reporting processes”Taskforce on Climate-related Financial Disclosures description. Sourced: TCFD website
Despite help from governments and regulators themselves, doing ESG reporting is still very complicated:
- Benchmarks span a wide range of variables
- there is no universally adopted standardization
- organizations do not know what to measure or where the data are stored
- organizations hardly keep track of the data collected efficiently and reliably.
Because it is so complex and there is no universally recognized line, many organizations get it wrong.
Traent hybrid blockchain is the solution
Blockchain technology can provide immutable certification and automated data reporting related to an organization’s ESG monitoring. Auditors and clients can then verify the data provided by the organization. Traent’s hybrid blockchain has many advantages over a public or private blockchain. In fact, combining the best aspects of public and private allows for a manageable degree of transparency.
Indeed, the organization can decide what data to show and to whom, having total control over it. Granular data disclosure is one of the main features and what makes our solution secure but at the same time transparent. It is secure because the data collected is on blockchain, becoming immutable and authentic. It is transparent because by publishing this selected data, the company can demonstrate its commitment to ESG. Because the data coming from the blockchain is immutable, the degree of truth is provable and authentic.
Another unique feature of our technology infrastructure includes low transaction costs, even for data-intensive applications.
Technology as an ally for your sustainable actions
Our enterprise-grade blockchain protocol is called Traent Era. With Traent Era, companies can manage an unlimited amount of data, which can come from any source thanks to the integration with IoT systems through APIs.
Within the platform, you can manage your data, select it and create ESG reports. You choose the degree of transparency and the data that can be shared with the outside. This is made possible by our hybrid technology that allows you to publish your selected data. These are immutable and free from external tampering. A secure system with which to manage data verifiable by everyone.
Once ready, the report can be made public through our Traent Viewer, a tool customized to your needs. It comes as a page with the look and feels you require and your branding prominently displayed. Your performances will thus be accessible by customers and auditors with a simple click from the browser. There is more. With our complete solution, businesses also can:
- track and trace company and product carbon footprint data. Companies can also show their commitment to neutralizing carbon emissions;
- monetize carbon credits and increase liquidity. Organizations can interact with buyers by making transactions faster and cheaper, minimizing the risk of fraud, and taking VCM to the next level of efficiency and transparency;
- trace products from the source to the end customer, recording transactions along the supply chain. Organizations can collect data, select them, and publish the results.
With a single complete and easy-to-use solution, companies can create a safe and efficient marketplace and help mitigate the impact of climate change.
ESG data management and reporting are increasingly complex. Certification bodies and governments require more and more certifications and aim to increase controls on the truth of the data disclosed. Since there is no universal standard to follow, neither in terms of required parameters nor documents, companies can run into errors by paying hefty fines and seriously undermining their reputation. In terms of reputation, there is a risk of reducing one’s clientele, especially preventing oneself from attracting the new generation of consumers, who are increasingly sensitive to purchasing sustainable products and brands.
Traent’s hybrid blockchain can solve these problems. The data are managed by the company and are resistant to external tampering. The data published by the company comes from the blockchain, so they are immutable. These are also verifiable by external parties: the company selects the useful data and publishes them showing its excellent performance. Since the data are immutable and verifiable from a simple browser, auditors and customers can see them in real-time and be aware that these are not false substitute declarations.