 My name is Sherwood Moore. I'm the chair of the Hyperledger Climate Action and Accounting Special Interest Group. I'll be presenting today with Bertrand Rue, who is the founder and head of Two Ravens Consulting. So today we're going to be talking about open source distributed climate accounting. I'm going to kind of kick off things with just kind of a high level about our motivation and kind of inspiration and our objectives. Bertrand's going to come in and talk about some specifics of the prototype that we've been developing. So the Climate Action Accounting Special Interest Group, we really are all motivated. I think we have very similar motivations and it's around this issue that we're failing to take action around climate. Enough action in order to meet the Paris Agreement pathway and we're continuing to put more and more carbon emissions into the atmosphere. So the question is why are we doing this? And I believe that there are kind of two key reasons. One is that we don't have a shared distributed climate accounting system that allows us to work from the same numbers. And the second component is that profit motives are not quite aligned yet. There's not enough incentive to drive corporations to really, to decarbonize and kind of apply the same kind of ruthless efficiencies that they apply to kind of driving down cost as they do to carbon. And so I'm going to be speaking a bit about our solution and I think how it touches on both. For those of you who aren't familiar, the Hyperledger Climate Action Accounting Special Interest Group, we are about 300 members. We're underneath the Hyperledger umbrella. We're focused, one of our primary focuses is this. We're focused on developing a distributed open source climate accounting system that can balance the emissions activity of the globe against the climate actions in order to achieve this net zero future. And so we're focused primarily, a lot of our work is on scope one, two and three. I'm sure you guys are familiar with it. The reason I share this is because a lot of what we're trying to do is shift corporate thinking about emissions activity. Right now corporations look at their emissions footprint and they consider it to be a liability. And what we want to do is reshape thinking a little bit to get corporations to really view it potentially as an asset. An asset for achieving a sustainable competitive advantage, moving into the future and kind of ensuring the success and health of their organization. So why? This kind of shift in thinking is that we're seeing different market forces that are emerging that are creating a new reality where corporate profitability is more directly tied to the carbon emissions of their goods and services. And then this is a phrase I believe Bertrand coined. I know he's used it quite a bit. But it's this idea of government regulation, consumer demand, green finance and financial markets kind of coming together to drive different levers to effect corporate profitability linking corporate profits to carbon emissions. And so essentially what we see is a future where decarbonization is going to be a key competitive strategy. And so to break this down a little bit into the basic building blocks, government regulation is introducing a carbon tax on certain goods imported into the European Union through the carbon border adjustment mechanism. Many of you might have heard of this. It's focused on just five key carbon intensive hard to mitigate industries. But this is an operating expense that's emerging. And for those five different industry categories, there's estimations of about $8 billion in carbon taxes that are going to be collected by 2030. So that's quite a significant amount. And you can imagine what this will look like and the pressures that it will create as this expands into other marketplaces and other kind of product categories. Another one is revenue and consumer demand for low carbon products and services is increasing. This is creating opportunities for price premiums, new product categories. The example I have here is the electric car market which reached about $208 billion this past year. So this is revenue. Another one is cost of capital. Sustainable finance is offering preferred rates to corporations that can prove they're lowering their carbon footprint. So cost of capital. And about $22 trillion will be injected into the green finance market by 2031. So these are massive movements of capital that we're seeing on the horizon. The last is market capitalization. Investors are rewarding corporations that are actively managing the risk that climate change represents. And about $130 trillion in investment capital is earmarked to be invested in corporations committed to achieving that zero. This is just from the UN Glasgow Financial Alliance that I believe happened in COP26. So we're looking at operating expense, revenue, cost of capital, market capitalization. Like this is a live blood of any corporate strategy. And the challenge right now is that in this current state companies aren't able to get a very good accurate assessment of what their carbon footprint is. And that's because emissions data, it's siloed and it's fragmented. And essentially what you have is corporations that are reaching out to their supply chain. They're kind of inviting input on the different emissions activity. This information is stored in a proprietary database. It's published once a year in a static PDF at the corporate level. So the information is just not being shared. And so this is creating key barriers to collaboration for decarbonization. There's low trust. Data isn't trusted to be accurate because it really isn't. It's following fragmented standards. There's a lack of primary data. There's no visibility into the data provenance. So you're kind of comparing apples and oranges. There's limited or no access. Again, it's siloed and centralized databases. It's reported out at the corporate level, not the product level, locked in annual reports. And there's a high cost. And that's because every single emissions activity must be measured, reported and verified. And to use the data in these siloed reports, you're waiting through an ocean of reports. It's just not really an interoperable layer of information sharing. So this is why we are focused on hyperledger. We're focused on distributed ledger technology because we think it's really the perfect solution for kind of decentralizing the ledger on which all the submission is being shared, right? So for those of you who aren't familiar, I'm sure you are, but essentially this is the perfect tool. It allows us to reach out to centralized databases to capture data, to make any calculations that need to be made, to format it, to bring it into ledger. Smart contract contracts allow us to code business logic into the system to automate value exchange. The blockchain itself provides, you know, the different... Well, hyperledger permission blockchain provides the different players in the network to kind of co-manage the databases while also protecting the sensitive information that they need to... because it's a permission network and all the players know each other within the network. And the last few pieces are distributed governance and open source technology. The entire system has governance built into it so that the participants can co-design the system together, co-manage it together. And then open source technology, this is really critical, right? Because when you look at the magnitude, the scale, the size, the complexity of capturing all the submissions activity across all these different players, everybody's going to have a different need. And so in order to build that, it really, I think, takes... and scale it in the time that we have remaining, this requires, I think, open source technology to allow everybody to contribute to building. And that's not just for the people in the parties in the supply chain. This is also for government regulators, green financiers and consumers. We need to essentially use open... take an open source approach to scale to meet the magnitude of this challenge. And so this is the future state that we're working to deliver. We developed an award-winning prototype that essentially allows for breaking down these silos. Embodied carbon emissions can now flow through a supply chain with each individual party sharing the emissions data that they're responsible for. This information provides a way for all of them to kind of share this information and break down barriers in order to kind of provide the clear data language across the supply chain. So you can see the standards that were used, whether primary data was used. You can see the policy documents and how it was measured, reported and verified. That's what we're working towards. That's what this technology promises. And so ultimately what we're trying to deliver is this efficient marketplace for environmental data. And this to allow different supply chain participants to work together to identify the hotspots, to establish vendor relationships to kind of build and walk in kind of low carbon partnerships, to explore the technologies and the processes and the solutions that can really give them a leg up and kind of get ahead in kind of establishing a competitive advantage built around low carbon emissions. And that's not just for the supply chain parties. As far as an efficient marketplace what we also want to create is a marketplace for that environmental data to be able to be used to drive incentives or capture incentives from government regulation, consumer demand, green finance and financial markets. And the idea is we can pull all these levers together. We can change the financial equation and make it a lot more financially interesting for corporations to really take a hard look at decarbonizing. So with that I'm going to hand it over to Bertrand who's going to walk through the prototype that we built in a little bit more detail. Can you hear me? Yeah? Oh, I don't know. All right. Well, first of all, thanks to everyone for joining and everyone who's here in the room today and also anyone who's joining the live stream. I really appreciate you taking the time to listen in on what we're doing. So Sherwood mentioned while I didn't coin the term measurement economy it's something I do prescribe to as a legal tender and it's becoming a very useful term in the industry to sort of explain how we're using data in this case environmental data as a driver for economic growth. And as Sherwood has mentioned, we've been developing prototypes and tooling to demonstrate this technology and function. For full disclosure a lot of this work has been using data from industry and now we're working closer with the actual industry so mostly public data they're providing to solve problems. And what I'm going to walk through with you today is how that technology can actually solve specific problems for these industry players just to give you some background. I actually come from the energy industry, worked for many years in that space both in only gas and electricity and trying to work through some of the internal problems they have in managing their environmental data, specifically emissions data. And I've developed a thinking and a lot of this is actually thanks to some of the conversations I had with Kyle who's here with us today and I know they've done a lot of work on this idea of verifiable credentials and getting information about organizations. So we look at this from two perspectives as far as how can we apply DLT to this environmental data market for environmental data. The first is the vertical lens right and this is really looking into the organization. What are the VCs that this organization holds? Are they a standard registry? Are they a project proponent that's operating within some set of standards? Are they a VVB, a validation verification body? They audit and validate. What credentials do they have to do that? It's really looking at the policy documents or the framework under which an MRV, a measurement reporting verification system functions for an organization. The second component here where we see applications of DLT is in the horizontal and here we're talking about the market instruments within the measurement economy, offset credits, performance certification. How do we differentiate the commodities that organizations are producing with respect to their greenhouse gas impact? And this really gets down to, as opposed to looking vertically at the organization, tracking results across organizations. So when we talk about this vertical optics, what are we asking? So we're trying to identify who is operating in the data marketplace. And what we're looking as far as applying solutions is assigning unique digital identifiers. This is something that the BC government is working heavily on locally on how do we issue digital credentials for individuals or even for organizations. And I know Kyle has a presentation about this I think later, maybe tomorrow. And the second question here is where are these operators credentials, where do they come from? They need to be discoverable. Most of the policy documents that are linked to these verifiable credentials issued to the organization. And how do we identify links to the trusted institutions and processes on which these VCs operate? So we have this sort of system of managing identities. This is the one area we're working on. How can we apply this solution? I'll talk a little bit about the actual technology that we're using and some of the existing solutions that we're building on top of to realize these gains or these solutions. So now getting back to the second component on the horizontal optics. The first question is who are the offtakers of environmental data? So an organization has its VCs, it audits and verifies its emission data. It's the consumer of that data, right? Now you have another organization in the supply chain. So we're looking at here's far solutions are developing contractual agreements to enable these transactions between the VCs of an organization, these credentials of the organization. And what are these impacts through these cross-organizational transfers? And this gets to the core sort of solution space that we're working in, which is tracking the value chain, often called the scope three impacts of emission profiles across organizations. So we have in this diagram below kind of tying these things together. We have the vertical VCs for organizations that are used to generate emission profiles and then a marketplace for exchanging that information through to the emission profile of another organization with its own VCs. So we fry this sort of visibility. So the solution space you're building as far as the business model, how we think about this. So again we can break this down into two components, the vertical and the horizontal. So we have the MRV policy marketplace. So there are companies that make a business off of establishing standard registries and these different processes of issuing verifiable credentials. So you have industry that engages with various PVVs. Some examples get to later, but you've got the ISO, the International Organization of Standards, that issues a variety of different credentials for verification bodies and a variety of registries. Vera, for example, has a big issue of offset credits. So they operate in this space. The second component is the emissions data market. Sherwood has already spoken to this, the development of ESG and sustainable finance and consumers of that data. I spoke about value chain reporting and commodity differentiation. So this is, again, the horizontal, the business model we're looking at. Now what have we built so far? And this is an ongoing open source project. If you're interested in looking at the tech, you can just search blockchain carbon accounting online and it should direct you towards our GitHub page. But what we've been working on are these, break it down to these three core components. Data pooling solutions where we can take proprietary enterprise data and sort of connect that into a verification tool, set of tools, set of tools for emissions verification and then compiling those into emission profiles, taking these verifiable credentials and putting them into these emission profile wrappers that can be issued as digital assets. And then those operate within this measurement economy where we have the various actors, corporations, you know, green finance, players in the green finance space, as Sherwood spoke to previously. So what we built, so Sherwood mentioned, you know, we had won some awards for initial prototype development. This was, there were two elements to that. One under the IBM call for code green challenge practice accelerator would develop the system for tracking value chain emissions across supply chain and also a submission to the hyper ledger challenge in 20, both of these in 2022. So there's some links in the slides here. Not sure if the slides will be shared, but happy to send them out to anyone who's interested. A lot of this information can be found through the hyper ledger carbon accounting special interest group. There are links in the back over there. And happy to share it with you after the presentation as well. So identity and digital credentials, the vertical emission data channels which sort of break down the vertical and the horizontal of communicating, aggregating information for the organization so it can be verified and then feeding into these horizontal objects. We developed, we've been working on this network called any team and emissions token network where we construct these profiles and I'll just end the presentation in a couple slides with a breakdown of what that looks like as far as the horizontal component. So diving into the architecture of what we built. So I spoke about data aggregation on the far left hand side of the slide. You see essentially the components that go into this part of the architecture the technology stack where we're essentially providing a variety of Oracle services which Sherwood mentioned to aggregate data from mobile, web or say ERP data feeds. And then continuing on this sort of vertical optics, we have systems for managing data about organizations and converting all of these data sources into useful information. Through private data channels we're working on hyper ledger fabric developing hyper ledger fabric network to manage enterprise data. Working also on conceptualizing a DAO where data can be submitted to registries matching data to VVBs and also funding pools for these auditors that are processing this data and finally issuing verified credentials and then finally the horizontal which I've spoken to already where the data is packaged into emissions data, sorry, emission token profiles. So I already mentioned hyper ledger fabric on the technology stack side. So in this case hyper ledger fabric is a permission network and we're focusing on its use cases for processing high volumes of data by VVBs and standard registries. We also have a mix of different emission token networks we're working with. We've set up a system to deploy our NET network which I mentioned previously on hyper ledger BESU. We're also working with Hedera Hashgraph. They have the Guardian protocol which is a very useful toolkit for managing MRV policy documentation and for establishing a token marketplace. We've also launched our code on some other public networks like Avalanche and Binance. So actually missing from this slide I think we had done some revisions but didn't get pulled through the latest version. There are a couple other projects that we're working with and I wanted to mention today. One is Origin Trail which was a project started in 2019. This is essentially developing a knowledge graph for publishing assets on a distributed ledger and one of the companies they're working with is the largest issuer of ISO certificates in the world, BSI, the British Standards Institute. ISO certification plays a really important role obviously in the VVB space for environmental data and we're actually right now looking at how to manage ISO certification for internal auditors of say energy companies that are managing or doing carbon accounting practices to publish those verifiable credentials of those auditors on a network that can enable them to then audit and publish their data to provide sort of this idea of discoverability and visibility that other organizations come and say okay I'm buying products from this organization with an internal auditor and I have sort of proof or confidence that their data has been audited up to a specific standard for example ISO. Now there are a lot of other companies, I mentioned BSI which deals with ISO certification that play a role in these certification and standard registries. So one of the values of using like Origin Trail this knowledge graph is that you can publish verifiable credentials on a discoverable ledger from a variety of organizations tied to an individual or representative organization. So you know you could use one could say okay you could do this with a standard centralized database while a distributed system allows you to collate all this information from a variety of different certification bodies. The last thing on the slide so I digress a little bit we've been working with the hyper ledger cactus or cacti community which is primarily focused on interoperability. So I mentioned a lot of different networks here so within our technology how do we enable sort of these systems to communicate and hyper ledger cactus, the open source project has been very very useful in that regard. So I'm going to close up the slide just again talking about the horizontal optics. This is a specific project that I've been working on and how I got involved with the hyper ledger carbon accounting group and that's really how do we track emission profiles for an organization across the supply chain and essentially what we've been developing since the end of 2021 and 2022 and it was a part of this submission to the accelerator that we won an award for on the hyper ledger challenge was designing this non-fungible token wrapper which essentially it's taking all of these verifier credentials that describe the emissions profile of our organization and how that data was derived into a wrapper that describes sort of these product emission impacts or product footprint for an organization and enables this NFT wrapper, enables the communication of that data across different organizations. This profile is just an aggregation of different data whether it's audited emissions data, retired emission tokens which represent realized greenhouse gas emissions or credits that they've purchased or issued and then we've got these output carbon tracker tokens which essentially represents products because when you're talking about the flow of emissions data, companies aren't really when you talk about what companies are trade or exchanging, they're not really trading emissions data, right? There is an exchange of emissions, they're exchanging products when you're talking about scope 3 so the carbon tracker component of this product is really representing those product flows. I'm not going to go into detail the functioning, I'd be happy to talk with people after about how it works but this is essentially the high level view of the design we've developed. Yeah, so just wrapping it up this NFT certificate ecosystem within the scope 3 reporting space essentially is designed to provide this flow of information across from primary producer whether it's energy or commodities through the intermediaries and the final consumer with these NFTs representing this sort of anchor point registry of emission profile data that all of these different entities in the supply chain can refer to that have a visible and trusted scope 3 impact assessment. Yeah, so our last slide here is just some opportunities on how you can get involved with the community so we mentioned some of the pilots we're working on we have a variety of engagements we're currently setting up developing go to market strategies writing reports so if you're interested in participating on that happy to accommodate or have some conversations with you we're doing a variety of different research projects including both financial analysis on the impact of the major economy for an industry specific industry player we're seeking grant funding also to continue open source development work under this blockchain carbon accounting project we mentioned we're also looking to transition that into hopefully a hyper ledger project and we also have bimonthly meetings under the carbon accounting special interest group again the links are there in the back you can easily find it online if you do a search the meetings happen I think every second Tuesday of the month or every other Tuesday whenever that falls and we also have a specific peer programming calls that occur on Mondays also twice a month as needed you know as the project picks up so I mean that's I don't need to drive into the addendum but that's our presentation for today happy to take in your questions and continue the conversation after the session thank you