The forces pushing environmental, social and governance practices to the forefront of bank operations have been building for a generation. This has only accelerated in the past couple of years.
The Biden Administration, including through the use of executive orders leveraging the National Economic Council, is pushing hard on investment in green technologies and industries. The European Union is seeing a flurry of ESG-related regulatory changes.
The fact that one of the world’s banking hubs, London, just saw heat records shatter to the point that part of an airport runway melted was its own form of motivation.
One tech innovation that is increasingly understood as a powerful tool banks can use to improve ESG solutions is blockchain. Although cryptocurrencies are the best-known use of blockchain—and one with a significant environmental downside—the technology has other uses that leave a far smaller energy footprint and are more directly useful in meeting current challenges.
Blockchain—a decentralized and continuously updated flow of data—brings a level of accuracy and transparency that allows for the complex functioning of environmentally vital sectors like supply chain management to be monitored and examined. With aspects that can provide both the privacy of data sources with overall transparency of information, blockchain tools provide ESG managers the opportunity to produce documentation that meets regulatory requirements and to make timely decisions on how best to use finite resources.
Here are five ways banks can use blockchain to improve ESG efforts and offset carbon footprint issues:
Continue reading: https://www.forbes.com/sites/forbesfinancecouncil/2022/10/24/5-ways-banks-can-use-blockchain-to-improve-esg-efforts/?sh=dc9d2d770e36
The Biden Administration, including through the use of executive orders leveraging the National Economic Council, is pushing hard on investment in green technologies and industries. The European Union is seeing a flurry of ESG-related regulatory changes.
The fact that one of the world’s banking hubs, London, just saw heat records shatter to the point that part of an airport runway melted was its own form of motivation.
One tech innovation that is increasingly understood as a powerful tool banks can use to improve ESG solutions is blockchain. Although cryptocurrencies are the best-known use of blockchain—and one with a significant environmental downside—the technology has other uses that leave a far smaller energy footprint and are more directly useful in meeting current challenges.
Blockchain—a decentralized and continuously updated flow of data—brings a level of accuracy and transparency that allows for the complex functioning of environmentally vital sectors like supply chain management to be monitored and examined. With aspects that can provide both the privacy of data sources with overall transparency of information, blockchain tools provide ESG managers the opportunity to produce documentation that meets regulatory requirements and to make timely decisions on how best to use finite resources.
Here are five ways banks can use blockchain to improve ESG efforts and offset carbon footprint issues:
Continue reading: https://www.forbes.com/sites/forbesfinancecouncil/2022/10/24/5-ways-banks-can-use-blockchain-to-improve-esg-efforts/?sh=dc9d2d770e36
