ESG Reporting Blockchain Demonstrator

BE Blockchain, in partnership with Settlemint, Multitel, and Block0, developed a blockchain demonstrator to enhance the transparency and efficiency of ESG reporting. This project, led by Agoria, helps businesses understand how blockchain ensures compliance and integrates smoothly with current systems.

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Background

To comply with the strict requirements of the Corporate Sustainability Due Diligence Directive (CSDD), BE Blockchain developed an interactive demonstrator. Moreover, the project demonstrates how blockchain improves ESG data tracking, making it transparent and accessible to all stakeholders.

Business Challenges

Data Integrity:
Ensuring the accuracy and availability of ESG data throughout the reporting process is critical. Traditional systems are often prone to errors and manipulation, compromising the reliability of ESG reports. Effective data management is essential for maintaining transparency and stakeholder trust, particularly when it comes to proving regulatory compliance.
Regulatory Compliance:
Complying with strict ESG rules, like those in the Corporate Sustainability Due Diligence Directive (CSDD), remains a major challenge. Companies must keep detailed, verifiable records to demonstrate their commitment to sustainability and avoid severe penalties. Even minor inaccuracies in reports can lead to substantial fines and damage a company’s reputation.
User Adoption:
Aligning IT systems across teams and partners is crucial to prevent errors. Traditional systems rely on manual work, slowing ESG reporting.
Integration:
Integrating blockchain with existing data management systems without disrupting ongoing operations presents another challenge. Adopting blockchain for ESG reporting requires a smooth transition. Businesses must adapt without disrupting daily operations.

Solutions

Collaborative Development:
In close collaboration with its partners, BE Blockchain designed a simple and intuitive demonstrator for ESG reporting.
Advanced Technology Integration:
The demonstrator uses Hyperledger Besu for blockchain infrastructure, integrates smart contracts and GraphQL within the Settlemint platform, and is backed by a front-end architecture in React.js and a backend in Node.js.
Training and Support:
BE Blockchain provides comprehensive documentation and training to facilitate the adoption of such a system.

Impact & Benefits

Blockchain Awareness:
The demonstrator clearly shows how blockchain can optimize ESG reporting.
Compliance and Security:
Blockchain enhances the transparency and reliability of data exchanges while ensuring full compliance with current regulations.

Conclusion

Currently, a single actor can enter only a few pieces of information into the tool. However, if the budget allows, an update will illustrate the collection of data from multiple actors through their IT systems, to generate a final report combining all the data. Although limited in scope, this project highlights the importance of blockchain in ESG reporting, offering operational advantages while ensuring strict regulatory compliance.

Looking to enhance transparency and ensure regulatory compliance in your ESG reporting with blockchain technology? Contact BE Blockchain today to discover how our solutions can streamline your ESG data management, ensuring integrity, traceability, and stakeholder trust.