S’pore firm STACS partners MAS to build blockchain-based ESG Registry

At the Singapore Fintech Festival last month, the Monetary Authority of Singapore (MAS) announced that it will partner with industry to pilot four digital platforms as part of Project Greenprint to meet industry needs. financial support into reliable sustainability data.

Project Greenprint was launched in December 2020 to harness innovation and technology to promote a green finance ecosystem by helping to raise capital, monitor sustainability commitments and measure impact.

According to MAS, one of the main challenges in financing sustainability is the difficulty of accessing high-quality, consistent and granular sustainability data.

Filling these data gaps will allow financial institutions to direct capital toward sustainability projects in a more scalable manner, effectively monitor their sustainability commitments, and quantify the risks and real impact of their portfolios.

greenprint mas project
Project Greenprint / Image credit: MAS

“Technology is a key tool for the financial sector to meet the challenges of the green transition and achieve net zero emissions,” said Sopnendu Mohanty, director of financial technology at MAS.

“The Greenprint project provides a functional digital infrastructure that aggregates new and existing environmental, social and governance (ESG) data from the ground up across multiple platforms and industry solutions to facilitate reliable ESG data flows between the financial sector. and the real economy – both in Singapore and globally.

Since the announcement of Project Greenprint, MAS has engaged the financial industry and other industry sectors to identify potential digital enablers to address data challenges.

One of the four digital platforms he is currently piloting is the Greenprint ESG data and certification registry. This is being developed in partnership with local fintech company Hashstacs Pte Ltd (STACS), and the pilot is expected to be completed in the second half of 2022.

What is the registry for?

The blockchain-based ledger will record and maintain the provenance of ESG certifications granted by certification bodies in different industries, as well as data and metrics that are verified by qualified third-party auditors.

Essentially, this provides financial institutions, businesses and regulatory authorities with a single point of access to this certified data and facilitates reliable data flows.

Benjamin Soh, CEO of STACS
Benjamin Soh, Managing Director of STACS / Image credit: Vulcan Post

“It’s a registry that the financial industry badly needs, because when it comes to sustainable finance, there is often a lack of comprehensive information. Thus, this ESG register will be able to provide data in one place, ”explained Benjamin Soh, CEO of STACS during a roundtable on virtual media held on Tuesday, December 1st.

“It will be an industry-wide library that stores ESG data and certificates. The overall objective is to enable institutions and financial investors to have continuous monitoring of their ESG commitments in order to mobilize investments more effectively.

Benjamin pointed out that there is an issue with fragmented ESG data pools. There are many different companies on the path to sustainability, but they all belong to very specific and fragmented industry sectors.

The path to sustainability is therefore very tailor-made. It is very difficult for a bank today to truly understand its impact every time it makes an investment or a loan. So what we’re looking to do here with the ESG ledger is we’ve deployed a blockchain. [It will] serve as a unique source of truth, transversal to various industrial sectors.

Benjamin Soh, CEO of STACS

Through APIs, the ESG ledger can support various downstream integrations, for example to help financial institutions with trade finance and portfolio monitoring.

Financial institutions will benefit from easier access to a tamper-proof pool of digitally processed data on sustainability projects in different industrial sectors.

esg ledger blockchain
Blockchain layer of the ESG ledger / Image credit: Vulcan Post

As part of the blockchain, STACS has also deployed a few different modules which are already integrated into the different sectors. This will help initially to receive and ingest ESG certificates from different sectors.

These certificates are the actual certificates that each industry produced. For example, there is the green mark for the Building and Construction Authority (BCA) and fair trade for agriculture. These are various certifications by different organizations that we want to be able to ingest and integrate into the platform. In other words, we digitize them.

Benjamin Soh, CEO of STACS

Second, many of these industries have a variety of technologies. For example, they use a variety of Internet of Technology (IoT) data analytics – satellites, drones, etc. – to capture some current data from different industries.

With this in mind, STACs also wish to capture some of this current data on an aggregated basis and store it in the registry.

“They are able to validate the data on our platform to perform an ESG rating or ESG ratings. They are also able to retrieve reports from our platform on demand at any time to support better analysis of portfolio scenarios, ”he said.

Finally, STACS wants to be able to input various industry standard protocols for reporting, such as terminologies and taxonomies, so that users can improve their ESG reporting in the financial industry.

The ESG registry will essentially connect to various trusted certification bodies and industry platforms and aim to support end-to-end traceability and transparency of complete business value chains. Further aggregation of ESG data can be done, creating the potential for ongoing impact reporting and monitoring.

The aim is to significantly improve the quality of the ESG data available, so that financial institutions can raise capital with more confidence for ESG projects, in the form of financing, investments or insurance linked to development. sustainability and carbon credit trading.

The ESG Registry platform aims to address two relevant issues in green finance: the lack of transparency and trust in ESG certifications, and inefficiencies in accessing different standards and certification requirements across different industries at the level national and even global.

MAS is happy to work with Hashstacs to bring together different players from different industries and sectors to provide, verify, certify and share data in a secure and efficient way, in order to unlock green finance.

Sopnendu Mohanty, Chief FinTech Officer at MAS

STACS sees increased interest in collaboration

“STACS has been in the industry since 2019, providing financial institutions with digitization and automation through our award-winning blockchain-based technology. Over the past two years, we have successfully digitized many parts of financial services processes, ”said Benjamin.

“Recently, we have started to get involved with financial institutions on the specific aspect of sustainable finance, and this excites us because we want to help advance the future of sustainable finance.

He has deep expertise in providing DLT infrastructure for digitization in the financial sector. Its clients and partners include banks, stock exchanges, asset managers and companies from different industries. He recognized the importance of sustainability, broadening his scope to improve technologically and enable sustainable practices.

STACS was also winner of the MAS Global FinTech Innovation Challenge Awards 2020 under the theme Sustainability and Green Finance and awarded the Best FinTech ESG (Asset & Wealth Management) Solution at the DigFin Innovation Awards 2021.

The ESG ledger is currently deployed in its beta phase, with ready modules and APIs for integration, and will continue to be improved based on collective contributions from industry partners over the coming months.

According to STACS, he received expressions of interest to explore the collaboration with the ESG registry from various financial institutions and organizations, such as Aviva Singlife, Citi, OCBC Bank, UOB, SGTraDex and Surbana Jurong.

“It is encouraging to see more engagement in green and sustainable space thanks to the growing demand from financial institutions for better tracking and measurement of green impacts,” said Benjamin.

“The collective efforts and synergies between DLT and other technologies / platforms will accelerate the achievement of a greener nation by serving many leading financial institutions and empowering all institutions (financial and non-financial) to unlock impactful ESG strategies for greater business value. “

Featured Image Credit: STACS / MAS

Our sincere thanks to
Source link

Related Posts

Leave a Reply

Your email address will not be published.