Global accounting firm KPMG has recently set out to measure and offset greenhouse gas emissions (GHG) with a new capability, Climate Accounting Infrastructure (CAI).
Patent-pending CAI is also intended to help organizations mitigate and report GHG. Climate technology companies including Context Labs, Prescriptive Data, and Allinfra are participating.
Businesses to report sustainability practices, ESG results
In 2020, organizations worldwide are expected to report sustainability practices. This includes results to meet environmental, social and corporate governance (ESG) demands of capital markets investors, said KPMG in a statement.
“Modernizing ESG practices is becoming a priority for every industry, from energy to technology to healthcare to retail, to support both financial performance and resilience. As a result, global organizations are looking to integrate environmental and financial risks associated with the cost of carbon into their real estate portfolio approach, using emerging technologies to validate their data and strategy.”Mike Hayes, KPMG’s Global Renewables head
The climate accounting capability integrates an organization’s existing systems. External data sources can track a trail of emissions and offsets recorded on blockchain, according to KPMG.
CAI also uses real-time data and analytics to model the impact of climate risks on business operations and financial performance.
Carbon emissions requirements expand
Arun Ghosh, KPMG’s U.S. Blockchain head, said: “As investors broaden their focus beyond financial factors to include ESG practices, organizations are increasing efforts to reducing carbon footprints, alongside transparent disclosure of progress.”
Carbon emissions requirements continue to evolve and expand, said KPMG.
Meanwhile, the European Commission has proposed to increase its 2030 greenhouse gas reduction target to 55 percent from current 40%.
Berlin-based network, Clean Energy Wire, said in a statement: “Member states, some of which have cautioned against too much ambition, still need to agree on their position, before a final target is embedded in the planned EU climate law after negotiations with the European Parliament.”