Trakti ESG Monitoring system based on Smart Contracts
Currently, ESG issues have become a major concern for businesses. To efficiently address these issues, enterprises must build quality and/or quantity monitoring systems. However, in traditional monitoring systems, data tempering and centralized storage have become barriers to reliability. Furthermore, due to lack of automation, traditional monitoring systems are inefficient.
Fortunately, Blockchain technologies and smart contract can provide all we need to overcome the above disadvantages and deficiencies.
Blockchain is tamper-proof and decentralized: a permanent and immutable ledger, where all transactions are in chronological order; smart contracts can conclude transactions between untrusted parties and are self-executing and self-verifying.
Trakti provides a monitoring framework that combines smart legal contracts and blockchain technologies for the automatic evaluation, measuring and reporting of, for example, carbon emissions generated.
Tracking carbon emission with Trakti’s end to end monitoring and reporting solutions should be a competitive edge to organizations to drive the UN’s Sustainable Development Goals.
According to predefined rules set out in the smart legal contract by the parties, a smart contract will be automatically executed once it is deployed on a blockchain.
Blockchain technology with the help of smart sensors helps to calculate energy consumption and generate data that can be aggregated and analysed on the blockchain.
The smart contract implemented on Blockchain will receive data from the sensors but also from the climate clauses settled by the parties in their agreement. In this way the smart contract can follow and apply contractual rules, conditions, level/parameters to be respected and flag to the parties if the measures and values depicted are aligned or not with the contractual statements.
The smart contract helps to calculate, track, and record all the data in real time.
Capturing carbon measurement across all supply chain participants into an immutable ledger facilitates audit trails, assuring traceability, security, and accountability. Trakti helps to trace the entire life cycle of, for example, a particular product, verify its origin and measure how the carbon footprints increment at each stage in the supply chain.
One of the crucial points of this technology is that it provides instant, real-time authentication, and verification with seamless records.
In addition, carbon emissions can be transformed into tokens or “carbon credits”, which companies, using Trakti, will be able to exchange to offset their footprint.
Ready to discover more about Smart legal contracts in Trakti? Click here: https://www.trakti.com/features-en-2/ or book a Demo here.
