Brooklyn Microgrid is using the blockchain for smart contracts and currencies in support of “resilient, sustainable and more efficient energy production of the future.” In simple terms, as FastCompany explains:
On one side of President Street, five homes with solar panels generate electricity. On the other side, five homes buy power when the opposite homes don’t need it. In the middle is a blockchain network, managing and recording transactions with little human interaction.”
Here’s a summary from the BBC:
What are the key elements?
To keep global temperatures “well below” 2.0C (3.6F) and “endeavour to limit” them even more, to 1.5C
To limit the amount of greenhouse gases emitted by human activity to the same levels that trees, soil and oceans can absorb naturally, beginning at some point between 2050 and 2100
To review each country’s contribution to cutting emissions every five years so they scale up to the challenge
For rich countries to help poorer nations by providing “climate finance” to adapt to climate change and switch to renewable energy.
And here’s a recently refined initiative develop by and applying to technology industry organizations (from WBCSD):
LCTPi is a unique initiative in terms of size, scale and potential impact. The global program is an unprecedented demonstration of the determination of business to collaborate across sectors and bring solutions to help governments in addressing climate change.
9 LCTPi groups are in operation: renewable energy; carbon capture and storage; low carbon transport fuels; low carbon freight; cement; chemicals; energy efficiency in buildings; forests and climate smart agriculture.
85 companies have made 93 endorsements of LCTPi (see annex 1) and are ready to move to implementation.
Over 1000 high level business representatives and policy makers have participated in international dialogues conducted across five continents and in all key emerging markets.
At the upcoming International Conference on Information Systems, Daniel Rush will be presenting new research empirically examining the association between enterprise information systems capabilities and greenhouse gas emissions in large organizations. The research, co-authored with myself, Ron Ramirez, and Kevin Kobelsky, suggests that IS capabilities may be a critical enabler of achieving corporate sustainability goals. The program session is Tuesday from 3:00 – 3:30 pm. in the Convention Center. Drop by to hear more from Dan!
[Full disclosure: I’ve worked with CDP over the years and have used its data for research purposes.]
Reviewing CDP’s latest information request, I’m struck by the lack of questions about the digital systems companies use to capture, store, analyze, and report the data requested by CDP.
Why is this important?
Reason #1: Data quality
The quality of these systems affects the quality of the information reported. For example, a dedicated cloud-based system with real-time access to the latest emission factors has clear advantages over an in-house developed spreadsheet. Yet CDP provides zero insight into the quality of foundational information systems used by respondents.
Reason #2: Complexity
Investing in and implementing the right information system to fit organizational objectives is non-trivial, evidenced by the high failure rate of IS projects.
Reason #3: Governance
Information systems are typically governed by information systems personnel, or jointly by IS and a particular business function. My own research reveals that for energy and carbon IS, facilities and sustainability experts are leading the charge. Is this optimal? Who should manage these systems? What sorts of governance structures might mitigate risk and ensure robust systems over time?
Reason #4: Regulatory Compliance
In many areas of the world, binding regulations are in place regarding corporate reporting of carbon emissions. It would make sense for investors (and other interested stakeholders) to have some transparency into the information systems (technologies, processes, and people) that produce these numbers. Moreover, one can foresee an audit function analogous to that for accounting information systems used for financial reporting (source):
Bottom line: Either CDP and other third-party data platforms need to request data about information systems used for carbon emissions management, or, we need a robust carbon accounting IS audit function to assure the validity of processes, technologies, and human work practices used to report carbon emissions. Otherwise, doubts about data veracity will likely persist and hamper the positive efforts of reporting firms and data collection agencies.
Accenture’s use of a digital platform for speed, scale, and efficiency.