A Greenhouse Gas Emission Tracking System (GETS) for Climate-Related Disclosures

Abstract

Scope 3 greenhouse gas (GHG) emissions are vital components of climate risk metrics, but they are challenging to estimate due to the lack of proper estimation methods and the difficulty in collecting data throughout the entire value chain. To overcome these challenges, we propose a system incorporating the Internet of Things (IoT), blockchain, and Life Cycle Assessment (LCA) to enhance climate-related reporting with a focus on Scope 3 GHG emissions. IoT and blockchain enable reliable data collection from various sources, and LCA contributes to the comprehensive evaluation of a product’s environmental impact and the estimation of Scope 3 GHG emissions. The system automatically verifies users’ identities, reports the firm’s overall climate-related performance, including Scope 3 GHG emissions, and validates the metrics disclosed by the companies in the chain. Our study sheds light on utilizing emerging technologies to enable reliable, complete, and accurate climate-related disclosures.

Keywords: Climate-related Disclosure, Scope 3 Greenhouse Gas (GHG) Emissions, Life Cycle Assessment (LCA), blockchain, Smart Contract, ESG