Distributed Ledger Technology (DLT) is increasingly being viewed through a dual lens, both as a challenge and a solution in the sustainability space. While concerns persist around the environmental footprint of certain consensus mechanisms like proof-of-work, DLT is simultaneously gaining traction as a powerful enabler of sustainable finance, climate initiatives, and ESG-aligned innovation. From carbon credit trading and ethical supply chain tracking to streamlined sustainability reporting, DLT offers tools for transparency, accountability, and regulatory compliance.
DLT can be leveraged for the tracking of physical materials and recording of financial transactions, enabling accountability and ethical sourcing. It can also be used to streamline data management, making it easier to provide regulators with access to secure, tamper-proof and up-to-date data.
Firms carrying out regulated activities related to digital assets are being brought within scope of sustainability reporting requirements—for example, the EU’s Markets in Crypto-asset Regulation (MiCA) incorporates sustainability indicators in mandatory reporting requirements for cryptoasset issuers and service providers.
Our Digital Assets and Blockchain practice is ready to support you on all matters at the intersection of digital assets and sustainability issues.
You can subscribe to updates by clicking here.