Electrodo - climate-related risk and asset management
- Roman Kravchenko
Project Name: Electrodo
Innovation Tagline: we build finance engine that converts climate-related risks and carbon-related assets into sustainable value.
Project Keywords: #sustainability, #sustainablevalue, #ESG, #climatechange #climate-relatedrisks, #greenfinance #hyperledgerfabric #electrodo
List the Hyperledger Project(s) (e.g., Hyperledger Projects that will be leveraged to develop your solution):
- Technology framework
- Domain-specific standards/frameworks
- Operating System for Climate Action
- Voluntary Carbon Offsets Directory Research Project
- CSR Reporting WG
- Tokenization Standards for Voluntary Ecological Market (Hypeldeger is a member of InterWork Alliance)
Project Members
- Evgen Merzliakov (Product Manager) - 4 years of experience in software engineering and product lifecycle management. Bachelor degree in computer engineering.
- андрей спивак (DevOps) - 7 years of experience in DevOps practices. Automation of developing process using actual technologies. Bachelor degree in business management.
- Alex Shehovcov (DevOps) - 11 years of experience in System Administration, avid practitioner in DevOps. Master degree in engineering of vehicles.
- Aleksandr Balabash (Software Engineer) - talented young software engineer with open mindset. Bachelor degree in computer science.
- Dmytro Kholodov (Software Engineer) - 3 years of experience in blockchain-based software development. Bachelor degree in computer science.
- Valeriia Volkovych (Visual Designer) - talented specialist with extraordinary vision and passion. Bachelor degree in Information control systems and technologies.
- Leonid Khatskevych (CBDO) - 13 years of experience in management. Entrepreneur, master in communication and business strategy. Bachelor degree in Robotics/IoT.
- Roman Kravchenko (CEO) - 10+ years in R&D and management. Master degree in Economic Cybernetics and Postgraduate (Department of Economics and Finance). Industry 4.0 and P2P economy expert focusing on scientific and technological challenges of the distributed systems, DLT, P2P economy and Blockchain solutions for Transactive Energy, Value Chain, and FinTech domains. Has worked in R&D area since 2010, implemented 50+ successful R&D projects. Roman has launched 3 international technology startups from idea to product. Contributor of the Linux Foundation Hyperledger project.
Project Description (no more than 1,000 words including graphics)
(Please describe your project, make sure to be as detailed as possible. If your proposal is technical, please include a high-level description of the technical specifications. Include graphics, links, videos, and any other resources.)
482.solutions (see details in section “Accomplishment and Team”) develops product Electrodo - software service for climate-related assets and risk management to increase enterprise market value. Electrodo solves the problem of data reliability and trust for carbon-related assets and climate-related risk management and disclosures through using a standardized framework based on TCFD Recommendations and data verification on blockchain.
Using Electrodo companies can track and trace carbon-related assets, set climate-related impact targets and follow-up on their progress, where those targets and progress measures may also be accessed by environmental agencies, investors, lenders, insurance underwriters to improve capital-allocation decisions (Fig. 1). As result enterprises get financially material outcomes and measurable motivation for sustainable transformation by: getting access to green financing mechanisms (e.g. green investments, green bonds, green loans etc.), reducing cost of money (e.g. bank crediting rate); avoiding carbon taxes (e.g. CBAM in EU); avoiding loss of stakeholders (e.g. investors, customers, suppliers) and increasing enterprise market value.
Fig. 1 - Electrodo in nutshell
During the project, we plan to develop a prototype (Fig. 2) that implements the basic functionality for the climate-related disclosure service (collection and verification of data, publication of reports).
Fig. 2 - System architecture
Problem
a. Describe the problem
In the post-industrial world we need to rethink and rebuild financial system from a profit-oriented to sustainability-oriented approach. Today companies don’t understand what are climate-related risks and how climate-related risks impact on assets value and financial outcomes. By implementing TCFD Recommendations Electrodo helps companies and investors identify, assess and manage carbon-related assets and climate-related risks across enterprise value and investment chains and transform climate-related risks into opportunities and financial outcomes.
b. Explain why existing solutions are inadequate
Existing solutions focus only on the climate-related data management and don’t solve the cornestone problem of creating and managing sustainable (shared) value.
c. Describe the competitive landscape
Now, industrial digital infrastracture has turned its attention to the world of social and environmental impact. The era of Impact-as-a-Service™ has arrived.
Our main competitors: EcoVadis, Persefoni, GumboNet ESG. Solutions from other vendors: SAP Climate 21, Ecochain, Datamaran, Sustainaccount, Mercatus.
Solution
a. Describe the solution
At baseline Electrodo uses a Life Cycle Assessment technique and TCFD Framework (TCFD Recomendations) focused on end-to-end enterprise climate-related assets and resources traceability. Electrodo includes two blockchain-enabled components: Token Management Engine - for asset’s data and context notarization (anchoring to blockchain through hashing) and Asset Management Engine for verification of climate-related disclosure. These blockchain Electrodo’s components developed on the top of Hyperledger Fabric v2.x - open-source enterprise-grade blockchain framework.
b. Explain why your solution is better than current state-of-the-art or existing solutions
Our unique value proposition is that we are building solution that focuses on solving the fundamental financial problem of managing enterprise value (market capitalization), conditioned initially by climate-related factors. Our goal is not just to measure factors of market value, but to set a functional, manageable correlation between factors (e.g. climate-related risks) and enterprise market value (market capitalization).
c. Define the minimum viable product and what you anticipate will be developed during the prototype phase
| Phase | System Name | Component (Service) | Description | Structure (Sub-Services or Applications) | Technology (Framework, Protocol, Standard etc.) |
|---|---|---|---|---|---|
| Prototype | Electrodo Core (TME.Electrodo) | Token Management Engine | A service that provides the ability to create and manage the lifecycle of a token - an abstract virtual entity, which is a mechanism for ownership and ownership of an asset |
| |
| AME.Electrodo | Asset Management Engine | A service that provides the ability to create and manage the lifecycle of an asset - a specific virtual entity endowed with economic content, which is a digital twin of some physical (existing in the real world) Asset, or object |
| ||
| MVP+ | VME.Electrodo | [Economic] Value Management Engine | A service that provides the ability to create and manage the life cycle of a value - a virtual entity, which is a digital twin of a physical (existing in the real world) economic Value, equal to the sum of many of its constituent Asset. |
|
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| 3rd party systems integration | IME.Electrodo | Interoperability Management Engine |
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Accomplishment and Team
a. Brag about your team
About 482.solutions team
482.solutions (Ukraine, Singapore) - is a software engineering provider specializing in industrial solutions using decentralized and Blockchain technologies. The key competency of 482.solutions is creating solutions for “Industry 4.0” domains: Energy, FinTech (Green Finance) and Blockchain. 482.solutions is a member of the EcoLabs Singapore national Centre of Innovation for Energy established by Nanyang Technological University, Enterprise Singapore, Sustainable Energy Association Singapore.
- 482.solutions is a member of the EcoLabs Centre of Innovation for Energy established by Nanyang Technological University, Enterprise Singapore, Sustainable Energy Association Singapore.
- 482.solutions with Electrodo is the winner and participant of the European research and grant program from Eureka (GlobalStars-Singapore Call): “Achieving sustainable living for residents of public housing in Singapore”. Under Eureka project together with our Singaporean partners we develop platform for sustainable living in public housing in Singapore. The goal of this project is to educate and motivate for sustainable living behavior through using Clean energy traceability and Sustainable living gamification by “Clean Energy Credits”. Clean Energy Credits used for offset a tenants carbon footprint and energy bill payments. For this project we provide Electrodo as blockchain-enabled decentralised infrastructure for clean energy asset management and payments tokenization.
- Our product Electrodo was nominated as Top-12 innovative solutions 2021 in Singapore in the nomination New Frontier Tech (Blockchain) of the competition organised by Sustainable Energy Association of Singapore.
- Electrodo became the semi-finalist of Singapore GreenTech Challenge - the program from Microsoft Innovation Center for Sustainability Solutions (MICSS).
- 482.solutions is a technology partner of Energy Web Foundation (Zug, Switzerland) - global nonprofit organization accelerating a low-carbon, customer-centric electricity system by unleashing the potential of open-source, decentralized technologies. The EWF ecosystem includes such companies as Envision Digital, SPgroup, EDF, Engie, General Electric, Hitachi, PTT Group, Eneco, and other innovators in energy sector.
For DTEK Group (largest private national investor in the energy industry in Ukraine) we have developed and launched a decentralized B2B marketplace for the issuance of Guarantees of Origin - the European standard of REC (“green certificates”).
b. Identify talent/resource gaps and needs (Do you need more support developing the blockchain solution? Do you need support with front end development? Do you need support developing the business model?)
We just need technical mentorship from the Hyperledger Fabric team on the right use of components for tokenization. We also need a review (e.g. from Hyperledger Challenge Ambassador Sherwood Moore, Co-chair, Climate Action and Accounting SIG) of our concept, in terms of best practices for developing solutions for managing climate-related risks of industrial enterprises.
Project Plan
a. Define the goals for prototype and launch phases and a one-year goal
| System Name | Component (Service) | Timeline | Goal |
|---|---|---|---|
| Electrodo Core (TME.Electrodo) | Token Management Engine | Q2-Q3 2022 |
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| AME.Electrodo | Asset Management Engine | Q3-Q4 2022 |
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b. Provide a high level plan to meet your goals
We'll seek to implement the project in accordance with the plan provided, by using ready-made technological solutions from Hyperledget Fabric (Fabric Token SDK) and FIWARE (FIWARE Context Broker).
c. Describe development risks and mitigation strategies
The key technical risk of the project is possible errors in the design of the system architecture. We hope to avoid these risks by getting mentorship from the Hyperledger Fabric team.
We need technical mentorship from the Hyperledger Fabric team on the right use of components for tokenization. We also need a review (e.g. from Hyperledger Challenge Ambassador Sherwood Moore, Co-chair, Climate Action and Accounting SIG) of our concept, in terms of best practices for developing solutions for managing climate-related risks of industrial enterprises.