Sustainable finance and ESG terms widely expressed by large corporate organizations and financial institutions are in the most part aspirational and when taken to extremes can be labeled as greenwashing. ESG projects are governed by rules with defined roles and responsibilities underpinned by verifiable and auditable data. The economics of sustainable finance must work too.
Quantum finance as a wholly data driven model for supply chain cash flow and working capital management is naturally aligned with the principles and set policies of ESG projects around the globe. There is a real incentive for the participants within the eco-system to collaborate and share data if this has positive impacts on operational and treasury functions within the company leading to demonstrable results on the bottom line.
In the quantum economic model that drives yields in the Synlian fund as expressed in events A-D we have an abundance of data that can be used by a wide variety of ESG projects that for example in the approach by Verra to its Verified Carbon Standard (VCS) “result in GHG emission reductions or removals that are real, measurable, additional, permanent, independently verified, conservatively estimated, uniquely numbered, and transparently listed (VCS Quality Assurance Principles)”.
The use of tokenization to mint emissions and offset tokens that link actual supply chain events helps to reduce double accounting and instances of ESG fraud. As we continue to develop our ESG program we will work with leading DLTs like Hedera. The open-source Guardian project built on the Hedera public distributed ledger network enables the creation of a frictionless and fraud-proof ESG carbon offset token economy through auditable, traceable, and reproducible records that document the emission process and lifecycle of digital environmental tokens.
The Guardian on Hedera enables the complex relationship between methodologies, roles, actors who fulfill those roles, and data they produce to cryptographically linked to digital environmental assets on the public ledger. These assets are fully auditable, discoverable, and compatible with state-of-the-art markets such as the Verra voluntary carbon market.
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