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During the Singapore Fintech Festival final month, the Monetary Authority of Singapore (MAS) introduced that it’s going to accomplice the business to pilot 4 digital platforms underneath Project Greenprint to deal with the monetary sector’s wants for good information on sustainability.

Project Greenprint was launched in December 2020 to harness innovation and know-how to advertise a inexperienced finance ecosystem via serving to to mobilise capital, monitor sustainability commitments, and measure affect.

According to MAS, one of many key challenges confronted in sustainability financing is the problem in accessing top quality, constant and granular sustainability information.

Addressing these information gaps will allow monetary establishments to direct capital in the direction of sustainability tasks in a extra scalable means, successfully monitor their sustainability commitments, and quantify the dangers and real-world affect of their portfolios.

Project Greenprint / Image Credit: MAS

“Technology is a key enabler for the financial industry to meet the challenges of green transition and achieving net-zero emissions,” stated Sopnendu Mohanty, Chief FinTech Officer at MAS.

“Project Greenprint provides functional digital infrastructure that aggregates new and existing environment, social, and governance (ESG) data from ground-up across multiple sectoral platforms and solutions to facilitate trusted ESG data flows between the financial sector and the real economy – both within Singapore and globally.”

Since the announcement of Project Greenprint, MAS has engaged the monetary business and different business sectors to establish potential digital enablers to deal with the info challenges.

One of the 4 digital platforms it’s presently piloting is the Greenprint ESG Data and Certification Registry. This is developed in partnership with native fintech agency Hashstacs Pte Ltd (STACS), and the pilot is anticipated to be accomplished within the second half of 2022.

What does the registry do?

The blockchain-based registry will document and keep the provenance of ESG certifications accorded by certification our bodies in numerous sectors, in addition to information and metrics which are verified by certified third-party auditors.

This basically supplies monetary establishments, corporates, and regulatory authorities with a single level of entry to those licensed information, and facilitate trusted information flows.

Benjamin Soh, managing director of STACS
Benjamin Soh, managing director of STACS / Image Credit: Vulcan Post

“It is a registry that the financial industry sorely needs, because when it comes to sustainable finance, there is often lack of complete information. So this ESG registry will be able to provide data in one single place,” defined Benjamin Soh, managing director of STACS throughout a digital media roundtable held on Tuesday (Dec 1).

“It will be an industry-wide library that will store ESG data and certificates. The overall objective is to allow institutions, financial investors to have continuous monitoring of their ESG commitments to mobilise investments more effectively.”

Benjamin identified that there’s an current downside of fragmented ESG information swimming pools. Many completely different corporations are on the street to sustainability, however they’re all in very particular and fragmented business sectors.

The solution to get to sustainability is due to this fact very bespoke. It’s very tough for a financial institution immediately to essentially perceive its affect at any time when it makes an funding or a mortgage. So what we’re in search of to do right here with the ESG Registry is that we now have deployed a blockchain. [It will] function a single supply of reality, cross-cutting over numerous business sectors.

Benjamin Soh, managing director of STACS

Through APIs, the ESG Registry can assist numerous downstream integrations equivalent to to assist monetary establishments in commerce financing and portfolio monitoring.

Financial establishments will profit from simpler entry to a tamperproof pool of digitally processed information on sustainability tasks throughout completely different business sectors.

esg registry blockchain
ESG Registry blockchain layer / Image Credit: Vulcan Post

As a part of the blockchain, STACS has additionally deployed a couple of completely different modules that are already built-in to the completely different sectors. This will assist to firstly, obtain and ingest ESG certificates from completely different sectors.

These certificates are the precise certificates that every sector has produced. For instance, there’s the Green Mark for the Building and Construction Authority (BCA) and Fair Trade for agriculture. These are numerous certifications by completely different our bodies that we wish to have the ability to ingest and into the platform. In different phrases, we digitalise them.

Benjamin Soh, managing director of STACS

Secondly, many of those sectors have quite a lot of applied sciences. For instance, they’re utilizing quite a lot of Internet of Technology (IoT) information analytics — satellites, drones, et cetera — to seize sure ongoing information from the completely different industries.

With that in thoughts, STACs additionally need to seize a few of this ongoing information on an aggregated foundation and retailer them on the registry.

“They’re able to validate the data on our platform to perform ESG scoring or ESG ratings. They are also able to retrieve reports from our platform on-demand anytime to support better portfolio scenario analysis,” he stated.

Lastly, STACS need to have the ability to enter numerous business commonplace protocols for reporting equivalent to terminologies and taxonomies, such that customers will be capable of improve their monetary sector ESG reporting.

The ESG Registry will basically join to numerous certification our bodies and trusted sectorial platforms and goal to assist end-to-end traceability and transparency of full enterprise worth chains. Further information aggregation of ESG information may be carried out, creating the potential of steady affect reporting and monitoring.

The goal is to considerably enhance the standard of ESG information accessible, such that monetary establishments can extra confidently mobilise capital in the direction of ESG tasks, within the type of sustainability-linked financing, investments or insurance coverage, and carbon credit buying and selling.

The ESG Registry platform goals to resolve two pertinent points in inexperienced finance — the shortage of transparency and belief in ESG certifications, and the inefficiencies in accessing completely different certification requirements and necessities in numerous industries domestically, and even globally.

MAS is pleased to work with Hashstacs in bringing collectively completely different gamers in numerous industries and sectors to offer, confirm, certify and share information in a safe and environment friendly method, in order to unlock inexperienced finance.

Sopnendu Mohanty, Chief FinTech Officer at MAS

STACS see elevated collaboration curiosity

“STACS has been in the business since 2019, providing digitalisation and automation through our award-winning blockchain-based technology to financial institutions. Over the last two years, we have managed to digitalise many parts of the financial services processes,” stated Benjamin.

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

It has deep experience in offering DLT infrastructure for digitalisation within the monetary sector. Its shoppers and companions embrace banks, inventory exchanges, asset managers, and corporates in numerous sectors. It has recognised the significance of sustainability, increasing its focus to technologically improve and allow sustainable practices.

STACS was additionally a winner on the MAS Global FinTech Innovation Challenge Awards 2020 underneath the Sustainability and Green Finance theme and awarded the Best FinTech ESG Solution (Asset & Wealth Management) on the DigFin Innovation Awards 2021.

The ESG Registry is presently deployed in its beta section, with prepared modules and APIs for integration, and can proceed to be enhanced based mostly on collective inputs from business companions over the upcoming months.

According to STACS, it has acquired expressions of curiosity to discover collaboration with the ESG Registry from numerous monetary establishments and organisations, equivalent to Aviva Singlife, Citi, OCBC Bank, UOB, SGTraDex and Surbana Jurong.

“It is heartening to see more commitment in the green and sustainability space through rising demand from financial institutions for better monitoring and measurements of green impacts,” stated Benjamin.

“Collective efforts and synergies between DLT and other technologies/platforms will expedite the achievement of a greener nation by servicing many global leading financial institutions and empowering all institutions (financial and non-financial) to unlock impactful ESG strategies for greater commercial value.”

Featured Image Credit: STACS / MAS

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