EY Q&A: How Blockchain Can Support CSRD Compliance

Regulations can be difficult to get the hang of, particularly in sustainability – but blockchain can help to automate the ESG reporting needed. 

Clare Adelgren is Global Head of Blockchain Sales and Operations at EY, responsible for running global operations to support its blockchain business including its product engineering team. 

She supports clients to navigate the integration of blockchain solutions into their business. 

Clare shares her blockchain expertise with Sustainability Magazine. 

How can public blockchain support companies to fulfil environmental commitments?

Public Blockchain technologies are distinct in providing a highly transparent and trustworthy approach to sharing information. This makes Blockchain a useful tool to help companies track, measure and report on their environmental commitments such as decarbonisation goals. It can be harnessed by organisations to support the critical decisions that are needed to make meaningful progress to close a gap between ambition and outcomes. By providing traceability and verifiability through tokenization, a blockchain ledger can provide reliable data insights across the entire ecosystem. 

Trust in reporting is of paramount importance. And understandably, supply chain stakeholders, customers and consumers alike scrutinise these claims. When terms like ‘sustainable’, ‘green’ and ‘environmentally friendly’ are actively used in product descriptions and advertising, it is essential these claims can be backed up. Sharing transparent, tangible progress on commitments is imperative. On top of this, amid the changing regulatory landscape, ESG reporting is becoming increasingly crucial to overall business success. 

Where some organisations may have previously worried that their sensitive data could be exposed to other competitors, these concerns have been alleviated through new advancements. Public networks can now be leveraged to build solutions without the need to sacrifice on privacy or confidentiality.

What are the benefits of using blockchain?

Blockchain is a powerful force for good in sustainability journeys. By providing detailed traceability and tracking of data, businesses can gather a robust understanding of what’s going on in their ecosystem. For example, they can track their emissions inventory and get a better understanding of the sources and impacts of carbon emissions at key stages of their supply chain. Businesses can receive real-time visibility into their path towards net-zero impact. It is however important to note, that this all works when organisations input good data. Taking time to really understand what data is needed and how to ensure the quality of that data is an important first step.

A notable example of blockchain supporting sustainability initiatives is EY’s partnership with Allot, a Norwegian non-profit. By implementing EY’s traceability solution to tokenise donations, donors have a clear view of their funds journey to impact, increasing their engagement over time and instilling confidence in the brand as a whole.

What role can blockchain play in supporting ESG reporting?

The World Economic Forum’s Global Risks Report 2025 reveals that environmental risks have increased in intensity and frequency over the last 20 years and are projected to heighten even further over the next decade. These findings indicate the weight of environmental reporting on organisations.

While increased importance is placed on transparent communication around sustainability, alongside that comes the demand for reliable data across the ecosystems that companies operate in. This is where blockchain technology can support, with its main benefit being immutability, which creates a valuable asset for the ecosystem – trust.

With ESG regulations, such as the Corporate Sustainability Reporting Directive (CSRD) coming into effect, deploying the relevant technology to assist in meeting the legislation’s stringent requirements is vital. This will become even more apparent in the coming years when we can expect further changes in the regulatory landscape for businesses to adhere to.

How can technology be used to accurately measure and track carbon footprints?

The carbon market still faces considerable challenges, particularly regarding the usage of carbon credits. One of the issues the industry is facing is the need for better transparency, traceability and verifiability of reported off sets. Blockchain technology can solve this challenge. With solutions available that are easily implementable and affordable. Blockchain is a valuable enabler for driving decarbonisation. 

Carbon emissions data associated with a product is captured and minted on a token. That token can be transferred through the supply chain. The minting, transferring and updating of tokens in this way provides a means for all stakeholders in the supply chain to accurately monitor and report their actual carbon emissions status. Such an approach can drive impact across the whole value chain. When carbon credits are also available as tokens that can easily be transferred and tracked, an individual organisation will have tremendous transparency of their current situation and be able to make active decisions to support their strategic objectives. 

This enterprise CO₂ footprint is transparent and independently verifiable. Organisations can confidently demonstrate their efforts to reduce their environmental impact.

With more pressure than ever placed on organisations’ environmental impact, leaders are looking for ways to deliver on sustainability objectives. Blockchain can be integrated to help companies fulfil their long-term environmental goals and ease the complexity of the reporting burden. By providing transparent tracking of sustainability efforts, this creates accountability for businesses and ultimately cultivates a stronger reputation, as well as trust from stakeholders, regulators and consumers. 

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