There has long been a gap between sustainability initiatives and companies being able to actually track the impact that it is having. However, technology is giving corporations the ability to make that gap virtually non-existent, and Allinfra Climate is leading the way.
Making a sustainable environment is on every organization’s agenda at the moment. However, most corporations do this as part of their company social responsibility efforts; there has been a rise in organizations advocating sustainability within the services and products they develop and provide.
For instance, nearly all large tech firms advocate sustainable environment programs and lower their carbon emissions. This includes reducing the usage of environmentally dangerous supplies for their products and recycling previous products. Many cell phone corporations have additionally decided not to include cellphone chargers when promoting their products so that customers can use their older ones.
Allinfra is Answering the Call
In Asia, Allinfra, a Hong-Kong based firm, is answering the call to action in opposing rising CO2 emissions via climate tech solutions. Allinfra’s product, Allinfra Climate, focuses on utilizing technology to revolutionize how climate-relevant data is collected, saved, used, and monetized by establishments, corporates, and governments.
Allinfra helps organizations calculate their carbon footprint to offset and meet their net-zero targets and use technology to create the most advanced, provenanced, and trusted digital environmental, financial products such as renewable energy certificates and emission reductions.
Allinfra integrates its climate data instruments to allow for ongoing verification of assets beneath green financing. This verification will enable issuers, lenders, investors, and rating agencies to have an extraordinarily provenanced and straightforward understanding of the organization’s progress towards its environmental goals.
Interview with Bill Kentrup
Tech Wire Asia caught up with Bill Kentrup, the co-founder and head of origination of Allinfra, to grasp how organizations are approaching the aim of lowering their carbon emissions and making a sustainable environment with modern technology.
Are organizations honest in lowering carbon emissions, or are they doing it because environmental laws pressure them?
We see companies setting decarbonization targets and taking action with a rising amount of buy-in that the typical temperature of Earth is rising, which is driving notable shifts in climate patterns that are massive, harmful, and demanding to handle or adjust for. Indeed, this represents an actual danger to companies and humanity at large. That’s not to say the buy-in is universal; however, I’d say this view is more extensively shared than it was 20 years ago and even 2 years ago.
While the above is more of an “existential” view, what tends to drive company methods and action is the management of “carbon risk” and unlocking “carbon opportunity.” So I’d say there’s a reasonable degree of sincerity as to the necessity to decarbonize. However, the action tends to consider financial and other enterprise health metrics within the short term.
How is technology taking part in the role in allowing for cheaper and more reliable data to underpin environmental finance (equity, debt, or hybrid), financial services (e.g., ratings, accounting), and environmental financial products such as renewable energy certificates or emission reductions?
Whether for climate-related finance, products, or reporting and scores, the market is inherently data-driven, i.e., achieving, evidencing, and being rewarded for emission reductions may differ from delivering and being paid for a cargo of soybean, just for instance.
You may say that carbon-related data, together with methodologies that convert data into impact, is akin to that soybean’s fiber, protein, and different nutrients. Therefore, climate policy and markets can not perform without programs to track and report data. In reality, one of the few legally binding elements of the Paris Agreements is the periodic reporting on carbon from every signatory of the Agreements.
Traditionally, the method for amassing that data and relating it to environmental services and products was pretty manual. Nevertheless, with technology presently accessible, this market can perform with higher efficiency, decreased risk, and increased optionality.
For instance, our end-to-end environmental solutions platform, Allinfra Climate, helps institutions obtain sustainability targets in various ways—from carbon accounting to verifying data for green bonds to creating, trading, or retiring digital renewable energy certificates and emissions reductions.
However, our technology’s most important function is the flexibility to capture verifiable, auditable data straight from assets. Without that accurate underlying data, organizations will struggle to track, verify, articulate, and ultimately profit from their decarbonization achievements.
How can and how is technology helping to speed up our climate objectives?
Historically, gathering data about environmental services and products was very costly and with long and unpredictable timelines. In addition, because many compliance carbon markets and company reporting take place in annual cycles, many institutions need to “settle their carbon books” around the same time of year. This annual settling has led to very painful bottlenecks in completing carbon audits or verifications. Thus, leading to penalties or liquidated damages on the other side of the delayed verification.
However, what used to take 6 months and cost tens of thousands of US dollars can now be achieved virtually instantaneously. Not only that but also at significantly less with higher certainty and unprecedented optionality (i.e., the ultimate product isn’t just a static report and a single product issuance, but moderately a stay and rising pool of information networked into monetary markets & skilled companies).
Any time you’re taking a significant element of a financial market and making it cheaper, you are likely to speed up that market with lower risk and more versatility. Once you speed up the carbon market, you accelerate positive climate impact. Additionally, any time a transition towards environmental enhancement gets “imposed” on the industry, the more manageable and predictable that evolution is, the less the commercial push-back tends to be. Emission-related markets (not simply carbon) have seen this transition consistently over the previous ~30 years.
What’s the limitation surrounding corporate sustainability strategies? Should they be improved? Do digitization and technology play a role?
There has been a recent and concerted wave of corporations articulating broad decarbonization goals. This becomes a severe problem for management, employees, and other stakeholders to work out. Several questions arise from these goals:
- What exactly do those targets mean?
- Where ought we begin?
- What can we do internally?
- Where do we need external support?
- How are we doing relative to other companies?
More particularly, how can we:
- Arrange a system that measures carbon
- Identify areas where we will obtain rapid and scalable reductions
- Map out longer-term carbon transition methods
- Incentivize operational business models to identify
All of this to obtain targets aligned with the group’s decarbonization goals.
How do we measure, price, and incentivize carbon reductions?
Technology can’t necessarily decide the measures to take in light of the entire range of issues an organization should make; however, technology can assist them with:
- Measure what’s occurring across assets
- Track the carbon impact realized via numerous modifications in operations or deployment of new technology
- Create legally transferable devices that carry with them rights to present and future emission reductions
- Package deal carbon-relevant data for chosen parties that may help improve the cost of funding, e.g., for ratings agencies and financiers.
Having confidence and functionality across the above factors helps companies weigh a variety of factors and ultimately take action.
Are local organizations taking sustainability much less significantly in Asia than large international MNCs?
Traditionally, the reply to that is yes; however, there’s been rapid development in Asia of corporates taking the topic of sustainability very seriously. Maybe with countries like Japan and Korea taking early action and China moving at scale and pace, companies with exposure to these markets have had the light bulbs turned on considerably – extremely cognisant of very actual and consequential danger and opportunity. Most countries in Asia have accelerated domestic policies regarding decarbonization. It’s getting more “real,” and fewer and fewer corporates are taking it casually.
How Allinfra is supporting different corporations in Asia to create trusted and verifiable sustainability data?
We now have several clients where we’re helping them put their best foot forward concerning carbon-relevant data who have assets within the energy sector, industrial and commercial properties, transport, and agriculture. For example, in a fascinating use case, we now have a renewable energy client with operating assets and where their financiers have contractual rights to the “environmental benefits” (e.g., carbon credits, renewable certificates, or other sustainable environment products) from these assets.
While these rights are agreed upon commercially, they require a system to quantify the magnitude of that environmental benefit and record the switch of that benefit from operators to lenders. Allinfra Climate, our solution for environmental data and products, is designed precisely to allow for low cost, high frequency, and everlasting digital matching of renewable power production with consumption — or, in this case, quantifying and transferring environmental advantages from an asset to a financier.
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