As the modernisation and development taking place in the field of investments, the investors are gradually shifting towards mature based investments where they see the portfolio of the desired company or a desired stock fulfilling the new concept of ESG (Environmental Process, Social Responsibility and Corporate Governance) or not.
The terminology ESG is basically not a new concept but it’s an old process but due to the highly rising of digitalization towards the global economy, the stock or the company has to follow the path of ESG.
So the Investors nowadays are taking cautious and modern steps in the mode of investments with the above pictograph providing the hint towards the explanation of the major usage behind the implementation of the ESG.
In general, ESG being understood as Environmental practices need to be follow besides gaining the commercial profits of the company, such companies grow trust among the other competitors, Social Responsibility is also being followed as the company looking after their social needs like human rights, supply chain standards, labor management and also whether Human Capital (Skills) being enhancing, and at last the Corporate Governance is just like the vigilance being followed properly inside the company or not like restricting and taking action against the Corruption, following the business ethics, maintaining gender equality in the board of director council.
In the digitalisation era and the introduction of the “Crypto-currency”, there is the concept of following the Blockchain Technology which is following simultaneously when an investor making his/her capital investing in this digital currency, where the records being maintained following in the form of ledger sheet or in other words in the form of “Databases”, such databases are referred as in commonly known as “Blockchain technology”.
What is Blockchain Technology?
Blockchain Technology is simply understood as two split words as “Block” and second as “Chain”, where it’s simply reflecting us that it is a form of a database chain which has been stored in millions of computers/servers where it can be accessed and recorded anywhere and any time zone. So we refer Database into as a “Block” and since it’s being connected with several Databases which forms the chain. It is the tabular form of storing the data where collecting and editing generally refers to the term “Miners” and such an event which is being practiced is known as “Data mining”.
So coming to our topic, where ESG goals are easier to achieve with Blockchain Techniques, into our above explanation about the ESG and Blockchain Techniques, we can draw a bigger picture that without proper databases a proper working cannot be followed in the work process of any firm or company and with the highly growth of maintaining ESG in the company where it can draw the sustainability and attention amongst the Investors where all the processes regarding maintaining records of the investors keeping place in most transparent order.
Blockchain technology itself comes out with the solution that this technology can provide unchanging endorsements or certification of any number of data points that relate to an Organisation ESG Tracking therefore the Blockchain technology offers new opportunity to enhance the sustainability efforts.