Today’s ESG Update includes blockchain as a tool for ESG reporting, Microsoft’s carbon removal partnership with Ebb, EY research on ESG data challenges, new German research ranking ESG concerns, and sustainable investing. spotlight on the global carbon market potential for
Dimitra leverages blockchain to strengthen ESG compliance in agriculture
Dimitra, an AgTech project, aims to help companies meet ESG requirements through blockchain-based services. The goal is to help farmers increase productivity and sustainability while ensuring traceability. Dimitra leverages blockchain, AI, and IoT technologies to deliver solutions such as a due diligence services platform to streamline ESG reporting and compliance with new EU and US regulations. Another more sustainable way to track a company’s ESG compliance is through ESG reporting software.
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Read more: Here’s how blockchain can help companies automate ESG reporting
Microsoft partners with Ebb to remove ocean-derived carbon dioxide
Microsoft partnered with Ebb on a 10-year carbon removal agreement. Using an electrochemical method that boosts the ocean’s natural absorption of CO₂, Ebu will be able to store up to 350,000 tonnes of CO₂ for the tech giant over the next 10 years. This technology supports Microsoft’s commitment to becoming carbon negative by 2030.
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More information: Microsoft signs ocean-based carbon dioxide removal agreement with Ebb Carbon
Financial industry leaders are concerned about the reliability of non-financial data, EY survey finds
EY’s 2024 Global Corporate Reporting Survey found that 96% of finance leaders question the robustness of non-financial data, hindering ESG decision-making. Additionally, the report states that only 50% believe sustainability goals are achievable in the near future. Despite expected higher compliance costs, 78% of investors see new reporting standards as a potential improvement. The report identifies AI as a key tool for transparency. Although skepticism remains, industry leaders are increasingly using AI-powered ESG rating software.
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Read more: AI poised to transform corporate reporting amid ESG concerns
Roland Berger survey: ESG compliance ranks as the biggest challenge for companies after inflation
According to a 2024 Roland Berger study, ESG compliance is now the second most important issue for companies after inflation. According to the survey, only 7.6% of companies feel their companies are good at ESG practices. Leaders at the best companies view ESG as a strategic benefit, not just a legal obligation, and are aligning their culture and resources accordingly.
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More information: Building a green organization
Are global carbon markets the future of sustainable investing?
As climate change looms as an undeniable global challenge, the development and integration of carbon markets has emerged as a key tool for a sustainable future. World Resources Forum Association (WRFA) President Runo Aubert spoke at the 2024 ESG Global Leaders Conference about the transformative potential of ESG investing to drive economic growth. Nevertheless, the path to a unified global carbon market is complex, requiring international agreements, effective pricing strategies, and geopolitical differences to be overcome.
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Further reading: The future of global carbon markets and ESG investing
Editor’s note: The opinions expressed here by the authors are their own and not those of impakter.com — Cover photo credit: Alex Wigan
