ESG VERFICATION POLICY

Today, ESG is a very hot topic for the Financial Service Industry (FSI). Using the Guardian ESG policy, FSI can easily authenticate and verify their ESG score, which opens up limitless possibilities.

Comment

Today ESG is very hot topic for Financial Service Institute (FSI) but there are lot of challenges faced by FSI

Problem

  1. Reputational risk: If a company is perceived as not addressing ESG issues in a responsible manner, it can damage its reputation and lead to a loss of trust from consumers, investors, and other stakeholders.

  2. Legal and regulatory risk: Governments and regulatory bodies around the world are increasingly imposing stricter rules and regulations on ESG issues, and companies that fail to comply with these requirements can face fines, legal action, and other consequences.

  3. Financial risk Companies that do not manage their ESG risks effectively can face financial consequences, such as reduced access to capital, higher borrowing costs, and a decline in their stock price.

Solution

With Guardian, FSI can efficiently authenticate and verify their environmental, social, and governance (ESG) scores, enhancing sustainability efforts and investor confidence.

Financial Services Institutions (FSI) are increasingly disclosing more information about their environmental, social and governance (ESG) performance.

Using Guardian we could easily validate and use verified ESG scores.

ESG Analysis can mitigate reputation risk and maintain the trust with both their clients and shareholders.

ESG has become a C-suite priority.  This is not solely driven by altruism but also by economics.

Higher ESG ratings are generally positively correlated with valuation and profitability while negatively correlated with volatility

Policy Description

The overall aim of this policy is to furnish verifiable ESG scores for financial institutions. Through seamless integration, it unlocks boundless opportunities. These ESG scores are sourced from registrars, specifically FSIs, and subsequently authenticated by ADMIN.

Once validated, these ESG scores empower governments, investors, and consumers alike with heightened confidence in their decision-making processes. The overall objective of this policy is to monitor Greenhouse Gas (GHG) emissions during the production life cycle stage for products within the atma.io digital product cloud. The calculation and tracking of emission data is based on the energy consumption during the production of a single item or batch of items.

The calculated GHG emissions are then published to a dedicated topic for easier display outside of the policy. At the end of each month the total emissions are aggregated and a emission token is minted.

The policy was written and tested with version 2.6.3 of Guardian.

Roles

This policy revolves around a singular role, beyond the standard registry, which pertains to the organization or company accountable for their ESG scores.

In the foreseeable future, multiple roles may be introduced as various organizations may partake in the verification of ESG scores

Setup

Before the policy can be leveraged to integrate ESG scores, it necessitates the storage of the following information:

  • Registrar: The FSI organization seeking to authenticate the ESG Scores.
  • Admin: The designated entities within the organization tasked with verifying the ESG score
  • ESG: Environmental, Social, and Governance Score.

Usage

Following the completion of the initial setup, the registrar can furnish the ESG scores for verification by admins. Once authenticated by admins, these scores can be utilized by institutions, governments, and customers, instilling heightened confidence in their decision-making processes.

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