EY Selects Ethereum Blockchain to Launch Carbon Emissions Tracking Solution
May 10, 2023
May 10, 2023
A beta version of a blockchain-based platform has been released by Ernst & Young (EY) to help businesses track their carbon footprint. EY hopes its Ethereum-based platform will allow enterprise customers to tokenize the carbon footprint (CO2e) of their products. EY’s new CO2e tracking platform is said to comply with the InterWork Alliance’s specification for carbon emission tokens.
On Wednesday, UK-based professional services firm EY announced EY OpsChain ESG, a blockchain-powered platform that allows companies to track and measure their CO2e emissions. An Ethereum blockchain-based beta version of this solution is now available on the EY Blockchain SaaS platform.
According to an EY press release, the EY OpsChain ESG platform will utilize tokenization to provide a trusted platform for traceability of emissions and carbon credits within the ecosystem. This also provides transparency for consumers, business partners and regulators.
Additionally, the platform offers companies a unique perspective on their carbon footprint through the process of tokenizing their product emissions. This will enable us to make better choices regarding our future environmental, social and governance (ESG) efforts. EY OpsChain ESG follows the InterWork Alliance Carbon Emissions Token Standard, enabling companies to create immutable reports on their current carbon footprint. Ultimately, the platform will enable the company to justify the carbon offsets it utilizes to reduce its environmental footprint while reducing his CO2e emissions.
EY’s latest release shows how businesses are still using blockchain technology to track CO2 emissions, credits and other workflow elements. The decentralized and transparent nature of blockchain and DLT will enable companies to create a secure and immutable record of emissions data, enhancing accountability and transparency in their ESG efforts. By demonstrating a commitment to environmental sustainability, companies can comply with regulatory requirements, reduce their carbon footprint and build stakeholder trust.
Blockchain companies are also working to reduce their carbon footprint. According to Forex Suggest, his Merge upgrade in September significantly reduced Ethereum’s carbon footprint from 21.95 million tonnes per year to his 8,824 tonnes. This upgrade changed Ethereum’s model from Proof of Work (POW) to Proof of Stake (POS).