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How Companies can report ESG data effectively using Blockchain?

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This article talks about the ESG (Environmental, Social and Governance) score and SDGs (Sustainable Development Goals) which are used by investors to decide if a company is worth putting their money or not and, I also talk about how the integration of Blockchain would be revolutionary in the reporting of ESG data considering the added transparency, immutability and Digitization Blockchain adds to the system.

Environmental, Social and Governance factors (ESG)

ESG refers to the Environmental, Social and Governance factors used to evaluate a country or a company on how far advanced they are in sustainability.

  • Environmental factors include the contribution a company makes to climate change with cutting of green gas emissions, waste management and energy efficiency.
  • Social factors include labor rights in the supply chain of a company, human rights and general factors such as workplace safety and health. 
  • Governance refers to a set of rules or principles defining rights, responsibilities and expectations between different stakeholders in the governance of corporations. [1]

This score is used by investors to avoid companies that might pose a potential financial risk due to their environmental or other practices.
The world’s largest investor, BlackRock CEO Larry Fink raised the bar by calling on corporate CEOs for their companies to have a social purpose and to be mindful of the impact of their business on society. Moving forward, he said, BlackRock will be keeping a closer eye on how companies behave. [2]

Investors are looking more closely into the ESG funds which are portfolios of equities and/or bonds for which environmental, social and governance factors have been integrated into the investment process.

Sustainable Development Goals (SDG)

SDGs are 17 interconnected Sustainable Development Goals which, according to the UN are the blueprint to achieving a better and more sustainable future for all. 

Most of the rating agencies are now including these scores along with the usual metrics for the performance of the company which adds another major factor for the investors to consider while investing. This puts more pressure on the companies to report their sustainability practices and adopt more transparency in their system.

Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, said in 2019: “We should embrace independent tracking tools for assessing progress under the Paris agreement and the SDGs and implement “stakeholder capitalism” by introducing an environmental, social, and governance (ESG) scorecard for businesses”.

Current Problems with ESG reporting

  • Data Reporting
    Investors are becoming more and more serious about the reporting of data about the ESG score. They wrote a letter to the SEC requesting them to develop a framework about the reporting of data concerning the ESG data.
    Companies are either reporting fragmented data or the data is of very limited use for the investors.
  • Data Accounting
    There is a serious problem with data accounting in companies regarding sustainability and governance which makes it difficult for the investors.
    This problem of data accounting is quite prominent in the supply chain of companies in which the data related to waste management is ignored or is fragmented.
    If the data related to ESG is not reported correctly by the company, then it’s ESG status is Unknown or Pending which means that the investors will be reluctant when investing in the company. 
  • Data Standards
    Most of the time the data reported by companies in regards to sustainability and governance does not meet the standards set by the authorities and this makes it difficult for them to calculate the ESG scores. Although the companies are reporting the data, it cannot be used by the investors as it does not comply with the standards and is basically useless. 

The London Stock Exchange Group’s characteristics of ESG investment-grade data

  • Accuracy: deploy rigorous data collection systems
  • Boundaries: align with the fiscal year and business ownership model
  • Comparability and Consistency: use consistent global standards to facilitate comparability
  • Data Provision: provide raw as well as normalized data
  • Timeliness: provide data to coincide with the annual reporting cycle
  • External Assurance: consider strengthening the credibility of data by having it assured
  • Balance: provide an objective view, including both favorable and unfavorable information [3]

How Blockchain aids in providing better ESG data?

  • Transparency
    With more transparency in the system of a company including the Supply Chain transparency, companies will be able to report the data concerning sustainability practices. This transparency can be achieved very easily with the integration of Blockchain in the supply chain of a company.
    Adding the Blockchain to the supply chain will aid in the integration of data which, as of now, is stored in data silos. With a common platform for all the entities on the supply chain, companies can provide complete transparent data.
    Also, the added transparency in the supply chain makes it easily auditable which adds to the credibility of the data because of the immutable nature of Blockchain technology.
  • Compliance
    Compliance with the government regulations regarding sustainability will aid in a better ESG score which in turn results in more investments. The use of technology is essential in the modern-day complex supply chain of companies.
    With the integration of Blockchain, AI, and IoT to monitor the operations of the supply chain, companies can assure better compliance. All the producer’s data can be uploaded on the Blockchain platform which eases the compliance process. 
  • Digitization of data
    Will all the data uploaded on the platform, the availability of data for the calculation of ESG score is fast and accurate. The data once uploaded on a Blockchain platform cannot be changed or deleted by anyone and with the upload of real-time data, the extraction becomes convenient and fast. [4] [5] [6]

QuillTrace, the right solution

QuillTrace is a Blockchain-based procurement platform by Quillhash which makes the supply chain of any business transparent, sustainable and secure with integrating with the existing Supply Chain systems. Using QuillTrace, companies can report their ESG data more transparently and with data formats complying with the Industry or International standards. With better data related to sustainability and governance about the company, their score increases which opens more avenues for the investors to look into.

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The post How Companies can report ESG data effectively using Blockchain? appeared first on Quillhash Blog.

Source: https://blog.quillhash.com/2020/03/13/how-companies-can-report-esg-data-effectively-using-blockchain/

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Ripple CEO Brad Garlinghouse Explains Why CBDCs Don’t Threaten XRP

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Ripple CEO Brad Garlinghouse Explains Why CBDCs Don't Threaten XRP

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In a recent tweet, Ripple CEO Brad Garlinghouse continues to bolster the opinion that digital assets like XRP aren’t threatened by Central Bank Digital Currencies (CBDCs), but rather, convinced that XRP would be that bridge amongst different CBDCs.

XRP, The Facilitator

Brad Garlinghouse of Ripple some few hours ago further buttressed the point highlighted in the Ripple Insight’s latest newsletter that CBDC is one thing, interoperability amongst different CBDCs is another. And if any project isn’t thinking of how these various projects will work together, it’s just basically “re-building the same siloed system.”

Many countries and their central governments are looking into issuing central bank digital currencies for its citizens. China seems to be leading the pack as it reported that it could launch its sovereign digital currency later this year.

In the U.K. earlier this year, Sarah John, Bank of England’s Cheif Cashier, had said that there’s a need for central banks around the world to start talking about central bank digital currencies. She says this is a “crucial” need.

In another speech, the Bank of England’s governor, Andrew Bailey, said that CBDCs are beneficial.

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With all these talks and plans ongoing in several parts of the globe, Brad Garlighhouse is optimistic that RippleNet’s On-Demand Liquidity service, which uses the XRP digital asset, will be a bridge amongst these currencies as it provides real-time transactions across multiple global markets.

Most Americans Don’t Like The CBDC Idea

Having a CBDC may be a good cause, but Americans don’t seem to like the idea of a “digital dollar.”

A survey carried out by Genesis mining shows that out of 400 participants, just 25% nods to a digital dollar idea. The rest associate digital currencies of any kind to be a medium for criminal activities and do not think it should replace paper notes.


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DISCLAIMER Read More

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

Source: https://zycrypto.com/ripple-ceo-brad-garlinghouse-explains-why-cbdcs-dont-threaten-xrp/

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Bitcoin Always Online In Venezuela: Launched The First Satellite Node In Collaboration With Blockstream

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Bitcoiners in Venezuela don’t need the internet to send some Satoshis. Today, the crypto payments startup Cryptobuyer announced the successful launch of the first Bitcoin satellite node thanks to a collaboration between Cryptobuyer, Blockstream, and a team led by a crypto enthusiast named Aníbal Garrido.

The initiative allows interacting with the Bitcoin blockchain without the need of an internet connection. A satellite antenna installed in Venezuela is in charge of the communication between the node and the blockchain.

How the Satellite Node Works

This novel solution allows the Venezuelan node to process information in real-time completely off-line. Thus, the normal functioning of the network in case of connectivity failure (something widespread in the country) is guaranteed. It also facilitates the use of cryptocurrencies in remote places where internet service is scarce, expensive, or even non-existent.

The project works as follows: Blockstream contracts a number of satellites to provide the communication service between the nodes and the blockchain. Cryptobuyer bought the necessary equipment to receive the signal and connect to the satellite, and Anibal Garrido and his team were in charge of assembling the antennas and making the required adjustments.

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For Alvaro Perez, a software programmer from Valencia City who helped set up the whole infrastructure, the node’s synchronization was an inspiring moment. In statements compiled by Cryptobuyer on an official blog post, the expert says that the operation was a “great achievement.”

“We downloaded the whole Bitcoin blockchain and successfully carried out the first transaction through a Bitcoin satellite node in our country on September 23, from the city of Valencia (…) We received bitcoin through the satellite connection without any internet connection. It was a moment of great achievement.”

The journey is just beginning for Bitcoiners in Venezuela

This would be the first of three antennas that Cryptobuyer plans to deploy to cover the country’s most critical areas. The remaining two will be placed in the country’s capital, Caracas, in the north of Venezuela, and Puerto Ordaz, an industrial city located south of the country.

Later on, they plan to deploy a large number of small devices that will serve as a sort of repeater antenna to create a sizeable mesh-type network that will facilitate transactions in Bitcoin even far away from the primary antenna.

Now there’s no excuse to start using some satoshis in the country. Venezuela keeps proving that it has plenty of reasons to be on the podium of the three countries with the most adoption of Bitcoin around the world.

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Source: https://cryptopotato.com/bitcoin-always-online-in-venezuela-launched-the-first-satellite-node-in-collaboration-with-blockstream/

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KuCoin’s CEO: The $150 Million Hack Is “Small” For KuCoin, Insurance Will Cover

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In a dedicated live stream, KuCoin’s CEO noted that although why he cannot reveal how much of the company’s total assets were affected during the hack, the stolen fund amount is “small for KuCoin.” The exchange will cover all the losses with its insurance fund.

  • The company first noticed the abnormalities at 2:51 AM, Sept 26, when it received an alert from its internal risk-monitoring system. More alerts followed, indicating abnormal transfers from the hot wallet.
    kucoin_ceo_lyu-min
    KuCoin’s CEO Johnny Lyu. Source: YouTube
  • At 3:01 AM, the exchange received an alert about its remaining balance from the monitoring system. Three minutes later, more alerts came in showing abnormal XRP withdrawal, which was followed by another alert that the company’s hot wallet is “running out of balance.”
  • Subsequent alerts between 3:05 AM and 3:40 AM showed abnormal BTC withdrawal alongside other tokens.
  • While the abnormal withdrawals were ongoing, the company set up an urgent task force and then shut down its wallet servers. However, the shut down did not do much to stop the hackers as the abnormal transfers continued.
  • At this point, KuCoin realized that the private keys of its hot wallet had leaked. The company then started moving the remaining balance in its hot wallet to cold storage at 4:20 AM. The process took about 30 minutes to complete.
  • Lyu said the exchange would publish the addresses used by the hackers on its official channels. An earlier report on the hack shows that the Ethereum address supposedly used for the operation contained over $150 million in ETH and ERC-20 tokens.
  • KuCoin is now in contact and working with the international police, its largest clients, and industry experts for an in-depth investigation into the incident.
  • The CEO also said they had asked most crypto exchanges, including Binance, Bitfinex, OKEx, BitMEX, and Houbi Global, to blacklist the hackers’ wallet address and assist with the investigation.
  • The crypto community was quick to swing into action to assist KuCoin in its request. Bitfinex CTO Paolo Ardoino said they have already frozen 13 million USDT on EOS that was part of the hack, while Tether froze the 20m USDT on Ethereum in the ETH address used for the hack.
  • While trading services are still available, withdrawals and deposits will remain closed until the exchange completes its wallet upgrade.
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Source: https://cryptopotato.com/kucoins-ceo-the-150-million-hack-is-small-for-kucoin-insurance-will-cover/

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