Advocacy for a sustainable environment with modern technologies
The creation of a sustainable environment is today on the agenda of every organization. While most companies do this as part of their corporate social responsibility efforts, there has been an increase in the number of organizations advocating for sustainability in the products and services they develop and also offer.
For example, almost all of the big tech companies are advocating for sustainable environmental programs and reducing their carbon emissions. This includes reducing the use of environmentally harmful materials for their products and recycling old products. A few mobile phone companies have also decided not to include phone chargers when selling their products so that users can use their old ones.
In Asia, Allinfra, a Hong Kong-based company, is responding to the call to action against rising CO2 emissions through climate technology solutions. Allinfra’s product Allinfra Climate focuses on the use of technology to revolutionize the way climate-related data is collected, stored, used and monetized by institutions, businesses and governments.
Allinfra helps organizations calculate their carbon footprint to offset and meet their net zero goals and use technology to create the most advanced, trusted and trusted digital environmental financial products, such as renewable energy certificates and emission reductions.
Allinfra’s climate data tools are integrated to enable continuous verification of assets under green finance, allowing issuers, lenders, investors and rating agencies to have a common and highly accurate understanding of how assets follow environmental objectives.
Tech Wire Asia met with Bill Kentrup, co-founder and head of origination of Allinfra to understand how organizations approach the goal of reducing their carbon emissions and creating a sustainable environment with modern technology.
Are organizations really sincere in their approach to reducing carbon emissions or are they doing so because they are forced to do so by environmental regulations?
We are seeing companies setting decarbonization targets and taking action with an increasing degree of support for the increase in the Earth’s average temperature, resulting in noticeable changes in climate patterns that are important, dangerous and difficult to understand. manage or adjust, and indeed that this represents a real risk for business and humanity in general. That’s not to say that membership is universal, but I would say that this view is so much more widely shared than it was 20, if not 2 years ago.
While the above is more of an âexistentialâ view, what tends to guide the strategies and actions of companies is the management of âcarbon riskâ and the release of âcarbon opportunitiesâ. So I would say that there is a certain degree of sincerity about the need to decarbonize, although in the short term the action certainly tends to take into account the financial and other health parameters of the company.
How technology plays a role in enabling more profitable and reliable data to underpin environmental finance (equity, debt or hybrid), financial services (e.g. ratings, accounting), and environmental financial products such as certificates of renewable energy or emission reductions?
Whether it’s finance or climate related products or reports and ratings, the market is inherently data driven, that is. achieving, proving and being rewarded for emission reductions is very different from delivering and getting paid for a shipment of soybeans, for example.
You could say that the carbon data, along with the methodologies that convert the data into impact, is akin to the fiber, protein, and other nutrients in this soybean. Therefore, climate policy and markets cannot function without systems in place to track and report data. In fact, one of the few legally binding aspects of the Paris Agreements is the periodic carbon report of each signatory to the Agreements.
Historically, the process of collecting this data and relating it to environmental products and services has been quite manual. However, with the technology currently available, this market can operate with greater efficiency, reduced risk and greater option.
For example, our end-to-end environmental solutions platform, Allinfra Climate, helps institutions achieve their sustainability goals in a variety of ways: from carbon accounting to data verification for green bonds to creation, exchange or withdrawal of digital certificates for renewable energy and emission reductions. .
But the most essential feature of our technology is the ability to capture verifiable and auditable data directly from assets. Without this precise underlying data, organizations will struggle to track, verify, articulate and ultimately benefit from their decarbonization achievements.
Why technology can and does help accelerate our climate goals?
As a continuation of the above, the historical process of collecting data on environmental products and services was very expensive and with long and unpredictable delays. Since many carbon markets for compliance and also corporate reporting take place in annual cycles, this often paves the way for many governments and companies to ‘tune their carbon books’ at the same time of year. ‘year, which has often led to very painful bottlenecks in getting audits or carbon audits, sometimes with penalties or damages in return for a delayed audit.
In other words, what would often take 6 months and cost several tens of thousands of US dollars can now be achieved almost instantly at a significantly lower cost with greater certainty and unprecedented option (i.e. that the end product is not just a static report and a single product release, but rather a live and growing data pool that is networked in financial markets and professional services).
Anytime you take a significant component of a financial market and make it cheaper, with reduced risk and more versatility, you tend to accelerate that market. When you accelerate the carbon market, you accelerate the positive impact on the climate. Additionally, whenever a transition to environmental improvement is “forced” on industry, the more manageable and predictable that transition is, the less industrial setback tends to be. This has happened over the past 30 years or so in many emissions-related markets (not just carbon).
What are the limits of corporate sustainability strategies, why do they need to be improved and what role can digitization and technology play?
Given that there has been a recent and concerted wave of companies articulating broad decarbonization goals, a major challenge for the management, staff and other stakeholders of these companies is to determine – what exactly these goals mean, that is to say. where should we start, what can we do internally, where do we need external help and how are we doing relative to their peers.
Specifically, how do we put in place a system that measures carbon, identifies areas where we can achieve immediate and / or scalable reductions, define longer term carbon transition strategies and incentivize business units to identify and achieve objectives aligned with the group’s decarbonisation objectives. Complex stuff.
How do we measure, price and promote carbon reductions?
Technology can’t necessarily determine what action to take in light of all the considerations a business needs to take into account, but technology can certainly help:
- Measure what’s going on between assets
- Monitor the carbon impact achieved through various changes in operations or the deployment of new technologies
- Create legally transferable instruments that include rights to current and future emission reductions
- Consolidate carbon data for parts that can help improve the cost of finance eg. for rating agencies and financiers.
Having confidence and ability around the above helps companies weigh a range of factors and ultimately take action.
Do local organizations take sustainable development less seriously in Asia than large international multinationals?
Historically, the answer to this question is yes, but there has been a rapid growth in Asia of companies taking the subject of environmental sustainability very seriously. Perhaps with countries like Japan and Korea taking early action and China evolving on a large scale and at a steady pace, companies exposed to these markets have seen the lights turn on in a big way – very aware. very real and very substantial risks and opportunities. Most Asian countries have accelerated national policies on decarbonization. It’s getting pretty “real” and fewer and fewer companies are taking it offhand.
How is Allinfra helping other companies in Asia to create reliable and verifiable sustainability data?
We have several clients for whom we help them to do their best with regard to carbon data that have assets in the energy sector, commercial and industrial properties, transportation and agriculture. As an example of an interesting use case, we have a renewable energy customer with operating assets and where their financiers have contractual rights to âenvironmental benefitsâ (e.g. carbon credits, renewable certificates or other sustainable environmental products) of these assets.
Although these rights have been the subject of a commercial agreement, they require the establishment of a system to quantify the extent of this environmental benefit and to record the transfer of this advantage from operators to lenders. Allinfra Climate, which is our solution for environmental data and products, is designed precisely to enable low-cost, high-frequency, and continuous digital correspondence of renewable energy production with consumption – or, in this case, quantify and transfer the environmental benefits of an asset to a financier.