ESG Reporting Mechanism

[IMPACT] Please describe your proposed solution.

Develop a model for ESG score validation consistent to ESG strategy experts operating offchain. Social accountability is at a pinnacle, with a demand for greater transparency and improved standards in social and environmental governance.

The solution will be provided by

• Identifying key ESG metrics
• Develop the most appropriate onchain measurement matrix
• Validate the ESG score in the business proposal
• Implement framework, monitor and act on risks
• Identify regulatory requirements and liabilities
• Highlight CO2 sequestration methodologies
• Carbon Credits Tracking and reduction
• Educational media to create awareness and increase transparency
• Collaboration with the Blockchain Climate Institute, Cardano4Climate and other blockchain climate groups.
• Identifying the environmental impact of a project
• Ensuring ethical behaviour
• Enable social equality

The Algae Token proposal aims to develop a sustainable net zero solution, manufacturing nutraceutical products for healthy living. This process also helps address depleting global food securities through the production of plant-based protein. The production process has positive benefits to the environmental and climate, reducing large quantities of CO2 and creating Oxygen.

Creating a reporting mechanism will align stakeholders towards common goals of improving the environment and climate. With regulatory, financial and social pressures driving ESG initiatives, now is the time for action.  

[IMPACT] Please describe how your proposed solution will address the Challenge that you have submitted it in.

The development of the ESG reporting mechanism will allow for greater transparency when onboarding a project. This is at the core of defining the enviromental impact of a project and can be used to compare or rate the benefit of different projects.

The metrics and scoring matrix developed can be used as a template for other projects to calculate their ESG score. The more projects that are ESG rated on the Cardano ecosystem the more accurate the environmental impact can be defined by groups like https://www.climateneutralcardano.org/

The Algae Token project will enable the purchase of physical products with ADA through an online Marketplace, with the knowledge that the whole process is ESG verified.

Onboarding climate conscious participants to Cardano allowing the opportunity the contribute to the organisation. 

Validation discussions are in place with the Blockchain Climate Institute. Home - Blockchain & Climate Institute (blockchainclimate.org)

[IMPACT] What are the main risks that could prevent you from delivering the project successfully and please explain how you will mitigate each risk?

1. Regulatory changes and unforeseen demands.
2. New standards and changes to ESG methodologies.
3. Regional requirements that differ from one project to another. 

These risks will be mitigated through keeping up with standards, ensuring that all local and international requirements are maintained. 

[FEASIBILITY] Please provide a detailed plan, including timeline and key milestones for delivering your proposal.

An allocation time of three months enables the Team to establish a ESG business model, allowing the certification submission. This application is for an on-chain cryptocurrency, obtained in the same manner and method off-chain business certification.

The process involves deliberations with scientific experts and ESG specialists. The ESG certification must abide by current local and international laws and regulations.

Major activities and Milestones

Month 1. Classify

• Identify regulatory requirements and liabilities
• Key metrics identification and reporting
• Identify best practises and ESG methodology
• Define Carbon Tracking procedures that best suit our project.

Month 2. Application

• Talent advisor partnership
• Develop ESG methodology and scoring matrix
• Implement Carbon Credit Tracking approach
• Identify amount of awareness to the project and ESG licencing

Month 3. Validation

• Validation of ESG score by external advisor
• Define total CO2 sequestered
• ESG score submission

Time has been allocated by the team to complete proposed milestones for this project. The milestones operate in conjunction with other business processes which coexist with complementary functionalities of business operations, required to complete the entire blockchain project. 

*Internal core team time allocation 1 day per week for 3 people over 3 months

[FEASIBILITY] Please provide a detailed budget breakdown.

Project development by the internal core Algae Token Team: 24 hours per week for 3 months (288 hours at $40/h = $11,520)

• ESG research
• Key metrics development
• Develop ESG methodology and scoring matrix
• Define carbon tracking modelling
• Project management and reporting
• Manage community engagement and onboarding

ESG advice & consultancy (60 hours at $75 = $4,500)

• Support for validation and development of the ESG system
• Comparison between on-chain versus off-chain ESG systems

Other expenditures (approx. $2,000)

• ESG software licencing
• Application fees for accreditation

Total $18,020

[FEASIBILITY] Please provide details of the people who will work on the project.

Dylan Kreis https://www.linkedin.com/in/dylankreis/

Bachelor of Information Systems

20+ Year's experience in Information System project management, design and implementation.

Chemical Engineer

He has significant experience as a Chemical Engineer and Farm manager for a micro algae-based companies in Australia and as the Algae Energy Farm Manager for the University of Queensland. Consulting for microalgae companies in Australia and the middle east.

Dr. Skye Thomas Hall https://www.linkedin.com/in/skye-thomas-hall-858a6639/

PHD. Microbiologist

Dr Thomas-Hall has worked at the University of Queensland as Team leader of the Algae Biotechnology supervising a number of PhD, Masters, Honours and undergraduate students, all working on algae production/processing.

Skye has helped set up over 30 small scale projects in hatcheries, university operations and several larger companies, primarily based in northern America and Australia.

Dr. Swaminathan Detchanamurthy https://www.linkedin.com/in/dr-d-swaminathan-5982b115/

PHD. Microbiologist

Chemical Engineer

Dr D. Swaminathan serves in the Board of different microalgae cultivating companies which includes Seagrass Tech Pvt Ltd India. Glaukos Algae Technologies, India and Algae Australia

[FEASIBILITY] If you are funded, will you return to Catalyst in a later round for further funding? Please explain why / why not.

This project aims to be self-sufficient, and will not require further funding for this particular proposal

[FEASIBILITY] Are you or any member of your team working on any other proposals in this Fund9?

[FEASIBILITY] Are you or your team working on any other proposals from previous Funds?

[AUDITABILITY] Please describe what you will measure to track your project's progress, and how will you measure these?

ESG certification adheres to broad range of requirements and scientific methodologies.

Impact reports, ESG standards

• Reports and analysis from ESG experts
• Identify regulatory needs and requirements
• The internally calculated ESG score will be validated by an external group.
• Follow and develop Carbon Tracking methodologies, follow standards
• Carbon Credits calculations will be validated by external entity
• A scientific approach to all business orientated operations and methodologies

[AUDITABILITY] What does success for this project look like?

The development of an ESG score and Carbon Tracking model, with the capability of complying with changing international standards.

Strong Tracking carbon credits with ongoing implemented methodologies and structures, for both on and off chain.

Successfully validated ESG – Certified

Regular environmental impact reports

Monitor and maintain equality in the workplace

Building sustainable businesses around circular economies (climate positive)

Showcasing a business model that provides the Cardano community an alternative opportunity to reduce global warming and become a net zero blockchain. While increasing food securities and promoting sustainable economic growth.

Fun Fact. Algae produces more than half the world’s oxygen and consumes 2kg of CO2 for every kg of algae produced, making it the fastest solution for resolving climate change.

[AUDITABILITY] Please provide information on whether this proposal is a continuation of a previously funded project in Catalyst or an entirely new one.

New Project Never been funded.

Sustainable Development Goals (SDG) Rating

This project is one of the most sustainable projects on the planet, providing solutions to Food, Fuel and Climate issues currently being faced worldwide. The education on these benefits must be brought into public domain and we appreciate your support. 

SDG goals:

Goal 1. End poverty in all its forms everywhere

Goal 2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture

Goal 7. Ensure access to affordable, reliable, sustainable and modern energy for all

Goal 13. Take urgent action to combat climate change and its impacts

Goal 14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development

SDG subgoals:

14.2 By 2020, sustainably manage and protect marine and coastal ecosystems to avoid significant adverse impacts, including by strengthening their resilience, and take action for their restoration in order to achieve healthy and productive oceans

14.4 By 2020, effectively regulate harvesting and end overfishing, illegal, unreported and unregulated fishing and destructive fishing practices and implement science-based management plans, in order to restore fish stocks in the shortest time feasible, at least to levels that can produce maximum sustainable yield as determined by their biological characteristics

2.1 By 2030, end hunger and ensure access by all people, in particular the poor and people in vulnerable situations, including infants, to safe, nutritious and sufficient food all year round

2.3 By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets and opportunities for value addition and non-farm employment

2.c Adopt measures to ensure the proper functioning of food commodity markets and their derivatives and facilitate timely access to market information, including on food reserves, in order to help limit extreme food price volatility

7.2 By 2030, increase substantially the share of renewable energy in the global energy mix

7.3 By 2030, double the global rate of improvement in energy efficiency

Key Performance Indicator (KPI):

7.3.1 Energy intensity measured in terms of primary energy and GDP

7.2.1 Renewable energy share in the total final energy consumption

2.c.1 Indicator of food price anomalies

2.3.2 Average income of small-scale food producers, by sex and indigenous status

2.3.1 Volume of production per labour unit by classes of farming/pastoral/forestry enterprise size

2.1.2 Prevalence of moderate or severe food insecurity in the population, based on the Food Insecurity Experience Scale (FIES)

14.4.1 Proportion of fish stocks within biologically sustainable levels

14.2.1 Number of countries using ecosystem-based approaches to managing marine areas