3 ways for decarbonization on the blockchain for your ESG initiative

Blockchain innovations are facilitating carbon asset transactions system in an exponential way. It can help organizations to monitor their carbon footprints and meet quotas by buying carbon credits from low emitters.

These mechanisms can significantly improve the transparency, accountability, and traceability of greenhouse gas emissions. It will help companies transition faster to carbon neutrality by providing accurate, reliable, and standardized data on carbon emissions.

With ESG on the radar of every company, the first step is decarbonization. There are three major phases in this transformation.

Phase 1:

Net-Zero carbon emissions mean that an activity releases net-zero carbon emissions into the atmosphere.

Phase 1 calls for an audit of the companies overall carbon footprint through its value chain to review processes to reduce their carbon emissions.

Through smart contracts, organizations can better calculate, track and report in real-time on the reduction of the carbon footprint across the entire value chain. Individual efforts of companies can be incentivized and have a networked effort on the whole value chain. Check out WREN, a neat tool for calculating and offsetting your carbon footprint.

Phase 2:

Carbon neutral means that any CO2 released into the atmosphere from a company’s activities is balanced by an…