Environmental, Social, and Governance
ESG, an acronym for Environmental, Social, and Governance, aims to establish an evaluation of companies’ social and environmental responsibilities. In so doing, it is very useful in helping “socially responsible investors” make their choice as to where to invest. In addition, environmental and social factors are becoming increasingly important in determining the value of a company where estimates of the value of global ESG assets exceed $53 trillion by 2025.
To evaluate the sustainability level, ESG reporting is widely adopted especially for the listed companies. However, due to the lack of data authentication, consistency, and transparency, the ESG-based sustainability evaluation is still inadequate. As the importance of ESG metrics increases, so does the demand for reliable data measuring them. With no industry-wide set of standards, however, they can be difficult to come by and the lack of verified and standardized ESG data can be a significant problem. To solve and overcome this problem, blockchain, and distributed ledger technology, in general, has the potential to provide a safe and transparent tool to overcome this obstacle.
Why Blockchain?
Blockchain works as an assurance of accuracy and transparency of data due to its tamper-resistant nature. It is a decentralized database of records, or “blocks,” which can only be updated once all the other blocks authenticate this change. This ensures the accuracy of the stored data.
Continue reading: https://www.natlawreview.com/article/use-blockchain-esg
ESG, an acronym for Environmental, Social, and Governance, aims to establish an evaluation of companies’ social and environmental responsibilities. In so doing, it is very useful in helping “socially responsible investors” make their choice as to where to invest. In addition, environmental and social factors are becoming increasingly important in determining the value of a company where estimates of the value of global ESG assets exceed $53 trillion by 2025.
To evaluate the sustainability level, ESG reporting is widely adopted especially for the listed companies. However, due to the lack of data authentication, consistency, and transparency, the ESG-based sustainability evaluation is still inadequate. As the importance of ESG metrics increases, so does the demand for reliable data measuring them. With no industry-wide set of standards, however, they can be difficult to come by and the lack of verified and standardized ESG data can be a significant problem. To solve and overcome this problem, blockchain, and distributed ledger technology, in general, has the potential to provide a safe and transparent tool to overcome this obstacle.
Why Blockchain?
Blockchain works as an assurance of accuracy and transparency of data due to its tamper-resistant nature. It is a decentralized database of records, or “blocks,” which can only be updated once all the other blocks authenticate this change. This ensures the accuracy of the stored data.
Continue reading: https://www.natlawreview.com/article/use-blockchain-esg
