Is Blockchain the Future of Transparent and Ethical ESG Reporting?
Today, sustainability has become an important business necessity and is no longer just a catchword. Proving sustainability is a big challenge compared to claiming it, putting businesses under ‘commitment’ pressure. In the present global economy, stakeholders, regulators, and consumers want detailed, practically implementable (and implemented) ESG reports and verified actions backed by transparent, traceable data. Unfortunately, current ESG reports are flawed, vague, and misleading. Many organizations perform yearly ESG audits containing self-reported data without third-party verification. This creates a greenwashing opportunity, where they overstate or construct false sustainability claims without consequences. As the trust in traditional ESG reporting fades, blockchain technology is emerging as a solution and a game-changer. Known for driving cryptocurrencies, blockchain reached the potential to bring integrity and traceability to sustainability reporting. Due to its decent...
