A Blockchain-Based Auditable Data Framework for Transparent, Real-Time ESG Performance Reporting in Sustainable Finance

Abstract

This research proposes a secure, modular, and scalable blockchain-based framework for real-time ESG performance reporting in sustainable finance by integrating event-driven smart contract automation, decentralized oracle networks, and cryptographic audit layers. Built on permissioned Ethereum infrastructure, the system ingests off-chain sustainability metrics—such as CO2intensity, energy mix ratios, and labor safety KPIs—via Chainlink oracles and secures them using SHA-3 hashing and IPFS-backed anchoring. Evaluation across key ESG domains consistently yielded 100% audit traceability, with average transaction finality of 2.3 seconds and automated compliance accuracy reaching 99.4%. Compared to centralized and semi-automated ESG infrastructures, the proposed system achieved up to 5.7% higher data integrity while reducing manual audit intervention by over 60%. By enabling programmable policy enforcement, high-frequency data validation, and verifiable reporting trails, the architecture significantly advances automation, transparency, and trust in ESG disclosure. Unlike legacy systems prone to lag and unverifiable metrics, this framework supports jurisdiction-agnostic deployment and real-time ESG assurance aligned with evolving global regulatory mandates.