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KPMG unveils blockchain solution to track climate emissions

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International accounting firm KPMG has unveiled its blockchain based Climate Accounting Infrastructure (CAI) solution to help organizations measure, report, and offset their greenhouse gas emissions.

CAI uses blockchain to securely store environmental data in a financial system as part of organizations’ climate risk assessments and asset valuations. It aims to help companies meet environmental, social, and corporate governance (ESG) targets.

The solution integrates an organization’s existing systems, including IoT sensors, with external data sources to establish a verifiable trail of emissions and offsets recorded on blockchain.

The accounting giant collaborated with data provenance and tracking providers Context Labs and Prescriptive Data, and blockchain firm Allinfra, on the product. Context Labs enriches emissions data provided by organizations with environmental context, before recording and certifying environmental, operational, and financial information.

According to KPMG’s U.S. blockchain leader Arun Ghosh the use of blockchain means data reports will be disclosed in a transparent and trustworthy manner in order “to meet stakeholder expectations and to comply with emerging regulations.”

“As investors broaden their focus beyond financial factors to include ESG practices, organizations are increasing efforts to reducing carbon footprints, alongside transparent disclosure of progress.”

Organizations will also be able to model the impact of climate risks on business operations and financial performance through real-time environmental data and advanced analytics.

Earlier this year, KPMG predicted that blockchain, in conjunction with Internet-of-Things (IoT), would lead the development of neclimate change solutions around the world.

Other large corporations are also exploring how blockchain can improve reporting capabilities of solutions that track greenhouse gas emissions. Earlier this year, Mercedes-Benz partnered with blockchain startup Circulor to track CO2 emissions. Volvo has also partnered with the startup to develop its own project, tackling the same problem.

Carbonblock has also developed a solution to increase transparency of climate related factors in the Porsche supply chain .



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London Stock Exchange-listed firm inks FCA’s approval for crypto services

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Mode Global Holdings, a London Stock Exchange-listed fintech group, has secured major regulatory approvals for cryptocurrency and fintech operations in the United Kingdom.

The company announced Thursday that Mode has secured its Electronic Money Institution license and AMLD5 registration from the U.K. Financial Conduct Authority.

The AMLD5 registration has been granted to Mode’s crypto arm Fibermode Limited, establishing it as an official crypto asset firm in the United Kingdom, pursuant to the amended regulations on money laundering, terrorist financing and transfer of funds.

The AMLD5 registration is a requirement for crypto-related businesses in the country that fall within the scope of money laundering regulations. According to the announcement, Mode is the fifth company to have received this registration to date since the FCA became the official AML supervisor of the crypto industry in the U.K. in January 2020.

Alongside the AMLD5, Mode’s subsidiary Greyfoxx Limited also acquired the EMI license, which enables Mode to offer a “range of innovative financial services” to both businesses and consumers in the United Kingdom, the announcement notes.

Following the acquisition of new regulatory approvals, Mode is planning to further expand its crypto services, including decommissioning its investment product known as the “Bitcoin Jar.” The product aims to allow Mode customers to use Bitcoin (BTC) to generate BTC interest rather than simply holding it in a wallet or on an exchange.

Mode CEO Ryan Moore noted that the new regulatory developments provide a major step in Mode’s mission to deliver a trusted and regulated environment. “It means we now have the ability to scale our operations and continue delivering innovative payments products for our customers under our own EMI licence. Both the EMI licence and the AMLD5 registration ensure business transparency, strong oversight and give our customers confidence in our offering,” he said.

Related: UK regulator warns against 111 unregistered crypto companies… and FOMO

The latest news comes shortly after a member of the British Parliament pointed out major difficulties in the process of registering crypto firms under the FCA’s AML regulations in late May. Economic secretary John Glen elaborated that FCA was not able to process and register all applications by its previous deadline due to a significant number of firms failing to adopt robust AML control frameworks as well as employ proper staff.