Companies are hedging bets on the hotly anticipated climate risk rules forthcoming from the U.S. Securities and Exchange Commission (SEC) expected to be handed down by the year’s end. Gary Gensler, the SEC’s chairman, stated recently that “decision-useful” levels of qualitative and quantitative data will ensure that investors are more informed and that the mandatory rules would enforce clarity around climate risk disclosures.
With anticipated compulsory mandates for ‘consistent and comparable’ reporting on par with year-end financial filings similar to 10-K’s, companies will have to figure out quickly how to adapt to meet disclosure requirements; especially if the rules include that of scope 3 emissions — data from counterparties across their value chains.
A major challenge of our time, environmental, social and governance (ESG) reporting requires verifiable, fact based metrics and specifically for the environmental requirements, reporting on climate risk is difficult and inconsistent. In industrial sectors, the next five years will prove out unprecedented strategies to drive sustainability progress, especially around the big energy transition and the pathway to net-zero. Clearly, fundamental changes in how businesses transact with one another will be pivotal to move beyond ‘greenwashing’ to transparent results that can be verified in a consistent manner — like financial results.
ESG on the Blocks
Smart contracts, powered and secured by blockchain, can automate transactions by codifying terms of commercial contracts to aggregate operational field data to produce a record of truth that verifies physical events and services in real time. As global businesses look to shift economics and behaviors to support carbon emission reductions, blockchain’s ability to accurately track, measure and automate sustainability impact data and ESG reporting will become a cornerstone.
At Data Gumbo, our massively interconnected smart contract network, GumboNet™, automates 98% of B2B transactions to streamline operations and provide unparalleled cost savings. Utilizing the same verifiable data, GumboNet ESG, uses smart contracts to calculate ESG metrics and produce accurate, trustworthy, and real-time ESG reporting.
Whether looking to measure data streams such as biodiversity impact, operational impact, greenhouse gas (GHG) emissions, or workforce health and safety, GumboNet ESG provides speed, ease, accuracy and trust around sustainability data — including the ability to track, report and audit carbon footprints for scope 1, 2 and 3 emissions.
Enabling Companies to Meet Objectives
With the expected rigor of the SEC’s formal climate risk disclosures, previously subpar or expensive ESG measurement strategies using estimations or inaccurate data won’t suffice. The good news is that we’ve taken care of that with GumboNet ESG, solving key pain points in ESG reporting to enable companies to more easily meet whatever the SEC mandates. Get in touch now to learn exactly how we can help you plan for the future.