Blockchain Papers

Veronika Vinogradova, Mariya Gubareva

No abstract is available for this record.

Bo Yang, Wei Tu, Fangzhou Lu, Shu‐Le Li

No abstract is available for this record.

Aakash Sharma, B Mishra

The assessment and promotion of responsible and ethical practices within the dynamic fintech banking sector are crucial, and sustainable ratings play a pivotal role in achieving these objectives. As the fintech industry disrupts traditional banking, it becomes imperative to evaluate its environmental, social, and governance (ESG) performance to effectively manage risks and maximize positive impacts. This abstract delves into the significance, challenges, and recommendations surrounding sustainable ratings in fintech banking. Although fintech and digital banking offer great potential, they also pose ESG risks. Innovations in areas like digital payments, decentralized finance, big data analytics, robo-advisory, and lending platforms reshape the financial landscape and contribute to financial inclusion, consumer empowerment, and efficiency. However, the long-term sustainability implications of these advancements remain uncertain. To address this, tailored ESG rating mechanisms are needed to assess fintech banking based on material sustainability issues. These ratings evaluate performance across key metrics such as climate action, ethical AI, data stewardship, financial inclusion, and governance. Stakeholders can leverage these ratings to identify sustainability leaders and align investments with the United Nations Sustainable Development Goals. Mainstreaming fintech sustainability ratings requires collaboration among multiple stakeholders, encompassing the establishment of reporting standards, disclosure frameworks, assurance mechanisms, and capacity-building initiatives. Challenges in this pursuit include the absence of sector-specific measurement standards, the reluctance of fintech firms to allocate resources to sustainability efforts, limited internal expertise, and concerns surrounding confidentiality and security. Overcoming these challenges necessitates the introduction of mandatory sustainability disclosure policies by regulators, the development of industry-specific reporting standards by industry associations and standard setters, and the integration of sustainability due diligence into the decision-making processes of investors. Furthermore, capacity-building programs are essential to educate fintech leaders on material ESG risks and integrate sustainability considerations into their strategic planning. Ultimately, sustainable ratings in fintech banking serve as a framework for evaluating and incentivizing responsible practices, empowering stakeholders to direct investments towards sustainable fintech innovation and fostering an inclusive and sustainable financial ecosystem.

Jude Enajero

The intersection of Environmental, Social, and Governance (ESG) investing and decentralized finance (DeFi) introduces innovative pathways for integrating sustainability into financial markets. This study conducts a comparative analysis of ESG-focused DeFi protocols, such as KlimaDAO and Regen Network, and traditional ESG investment funds, including the Vanguard ESG U.S. Stock ETF and BlackRock Sustainable Advantage Large Cap Core Fund. Using data from March 2021 to March 2023 and quantitative methods such as ordinary least squares (OLS) regression, the study evaluates financial performance, transparency, and impact assessment. Results indicate that ESG-focused DeFi protocols provide enhanced transparency and potential for higher returns but are hindered by greater volatility and regulatory uncertainty. Conversely, traditional ESG funds offer stability and robust governance frameworks but lack the real-time transparency inherent to DeFi platforms. The findings underscore the need for standardized ESG reporting and offer actionable insights for investors aiming to align sustainability goals with financial performance

Xinlai Liu, Wenbiao Liang, Yelin Fu, George Q. Huang

Investors are increasingly relying on Environmental, Social, and Governance (ESG) indexes to obtain a third-party assessment of corporate sustainability performance. Various ESG indexes are, therefore, released by prominent rating agencies, including MSCI, Sustainalytics, Refinitiv, etc. However, existing ESG indexes overvalue the usage of massive ESG metrics while ignoring various ESG disclosure levels, leading to critical issues such as limited company coverage, inflexible ESG framework, and obscure assessment processes. This paper proposes a novel Dual ESG Index (DESGI) model using blockchain technology to provide a flexible and transparent corporate sustainability assessment. Firstly, the DESGI model is developed by analogy to the rationale and concepts of the academic credit system due to its advantages of scalability and flexibility. Secondly, blockchain is used to build a transparent environment for ESG assessment. Thirdly, the smart contract and crypto token, as the core blockchain constructs, are used to achieve the dual-dimensional ESG depth and width assessment using ESG GPA and ESG credit, respectively. Finally, a case study is carried out to validate the DESGI by using real-life ESG data and comparing it with four existing ESG indexes. Several managerial implications are also found: (1) DESGI can expand the scope of companies evaluated by ESG criteria regardless of company size or scale; (2) DESGI provides a good potential to fight against greenwashing through the blockchain-based traceability; (3) DESGI can identify the ESG elites who disclose fewer ESG metrics but with excellent ESG performances, which can hardly be achieved using traditional ESG indexes.

Uli Wildan Nuryanto, Basrowi Basrowi, Icin Quraysin, Ika Pratiwi

This research investigates the intricate relationships between Environmental Management Control Systems (EMCS), Blockchain Adoption (BCHA), Cleaner Production (CLPR), Product Efficiency (PROD), Environmental Reputation (ENRE), and Environmental Performance (ENPE) within organizational contexts in Indonesia. The study aims to shed light on the role of technology adoption, sustainability practices, and reputation management in shaping environmental outcomes. Methodologically, the research employs a quantitative approach, utilizing survey data from diverse organizations. Structural equation modeling (SEM) analyzes the data and tests the hypothesized relationships. The findings reveal significant positive relationships between EMCS and BCHA, EMCS and CLPR, EMCS and PROD, BCHA and CLPR, BCHA and PROD, and BCHA and ENRE. Cleaner Production demonstrates a substantial positive impact on both ENRE and ENPE. Product Efficiency influences ENRE positively. However, the direct influence of PROD on ENPE is found to be inconclusive. The study contributes to understanding sustainability dynamics by highlighting the pivotal roles of EMCS, BCHA, CLPR, and PROD in driving environmental reputation and performance within organizations. Furthermore, it underscores the significance of aligning perceived reputation with tangible environmental commitment. Limitations include potential data constraints and the challenge of establishing causality due to the study's correlational nature. Future research is encouraged to explore diverse contexts, conduct in-depth case studies, and investigate moderating variables. This research offers novel insights into the complex interplay between technology adoption, sustainability practices, reputation management, and environmental outcomes, providing valuable guidance for organizations striving to navigate the sustainability landscape in an era of heightened environmental awareness.

Zhouyu Tian, Lening Qiu, L Wang

The field of sustainability accounting aims to integrate environmental, social, and governance factors into financial reporting. With the growing importance of sustainability practices, emerging technologies have the potential to revolutionize reporting methods. However, there is a lack of research on the factors influencing the adoption of blockchain and cloud-based sustainability accounting in China. This study employs a mixed-methods approach to examine the key drivers and barriers to technology adoption for sustainability reporting among Chinese businesses. Through a systematic literature review, gaps in knowledge were identified. Primary data was collected through an online survey of firms, followed by in-depth case studies. The findings of the study reveal a positive relationship between company size and reporting behaviors. However, size alone is not sufficient to predict outcomes accurately. The industry type also has significant but small effects, although its impact on reporting behaviors varies. The relationship between profitability and reporting behaviors is intricate and contingent, requiring contextual examination. The adoption of blockchain technology is positively associated with capabilities, resources, skills, and regulatory factors. On the other hand, cloud computing adoption is linked to resources, management support, and risk exposures. However, the specific impacts of industry on adoption remain inconclusive. This study aims to offer empirical validation of relationships, shedding light on the intricate nature of interactions that necessitate nuanced conceptualizations incorporating contextual moderators. The findings underscore the importance of providing customized support and adaptable guidance to accommodate the evolving practices in sustainability accounting. Moreover, the assimilation of technology and organizational changes highlights the need for multifaceted stakeholder cooperation to drive responsible innovation and address the challenges posed by digital transformations in this field.

Yu Gu, Lanxin Jiang, Jun Dai

SYNOPSIS This study examines widespread greenwashing practices in corporate environmental disclosures and the potential of blockchain and smart contracts to address this problem. We define six types of greenwashing risks in environmental disclosures: misconduct, selective disclosure, misclassification, hollow promise, in name only, and misleading presentation. To combat greenwashed disclosures, we propose a comprehensive framework that integrates blockchain and smart contracts to create automated controls and provide tamper-resistant audit evidence. On the basis of this framework, we design and implement smart contracts on blockchain to combat greenwashing practices in Shell plc’s environmental disclosures. This study provides automatic, real-time, and secure greenwashing risk controls with early warnings for auditors and regulators. In addition, it introduces new audit tasks such as using blockchain information to verify environmental disclosures; creates novel opportunities for environmental experts to set rules for greenwashing; and offers insights on greenwashing risk detection, market monitoring, and policy development for regulators. JEL Classifications: M41; M42.

Abdullah Kaid Al‐Swidi, Mohammed A. Al-Hakimi, Mohammed Saad Alyahya

Purpose Despite the importance of green supply chain integration (GSCI) in advancing green innovation (GI) is recognized, it remains unclear how firms can translate their GSCI efforts into GI. Therefore, this study aims to understand how GSCI affects GI, with its dimensions (exploitative GI and exploratory GI), as well as to investigate the mediating role of green knowledge integration capability (GKIC) and the moderating role of blockchain technology (BCT) adoption. Design/methodology/approach On the basis of data collected from 247 managers working in Indian firms in the automotive industry, the authors tested the proposed model using the PROCESS macro tool via SPSS software. Findings The empirical results indicate that GSCI is positively associated with both exploitative and exploratory GI, with a higher effect on exploitative GI. In addition, GKIC mediates the link between GSCI and exploitative GI in contrast to exploratory GI. Notably, the relationship between GSCI and GKIC is stronger when BCT adoption is high. Originality/value This study opens the black box of how GSCI affects exploitative and exploratory GI by revealing the mediating role of GKIC and the moderating role of BCT adoption. It provides valuable insights for practitioners to translate GSCI efforts into GI through developing GKIC and adopting BCT.

Tiansen Liu, Yu Zhu, Yue Zhu, Jiayu Wang · 5 authors

Optimizing customer structure is worthy of developing because products/services offering can promote a delightful financial situation. Inspired by this, we examine the moderation effect of customer concentration targeting at the relationship between financial stress and sustainable operations of China’s manufacturers that exercise substantial impacts on climate change and industrial prosperity. Many industrial sectors, for example, shipbuilding, nonferrous metals, electronic component manufacturing, and food processing, are involved in this study. Empirical results indicate that a higher asset-liability ratio (embodying debt-level stress) and a higher ratio of tax payment to tax rebate (embodying social-level stress) both do not impose a constraint to sustainable operations, but such operations indeed need a response from a lower ratio of total operating cost to total operating revenue (embodying operation-level stress) and a decentralized customer structure. Moreover, customer concentration offers a power to be able to enhance the anti-risk capability of financial stress at the operation-level, thus suggesting narrowing the gap between tax payment and tax rebate. Our analysis transpires that a disharmony between financial stress and sustainable operations can be buffered by decentralizing customer structure. This study contributes to a new insight around the effect of customer in harmonizing finance and sustainability issues in manufacturers of emerging markets, thereby inspiring backbone industries to reach business sustainability assisted by a broad customer group.

Paola Bongini, Francesco Osborne, Alessia Pedrazzoli, Monica Rossolini

No abstract is available for this record.

Pattarake Sarajoti, Pattanaporn Chatjuthamard, Suwongrat Papangkorn, Piyachart Phiromswad

Blockchain technology is a public ledger that stores data in a chain of blocks which can radically improve the quality of our records from “records that might be trustworthy” to “records that trust is absolute”. This chapter explores one area that blockchain technology can radically transform but has not yet received significant attention. We evaluate the suitability of applying blockchain technology for corporate social responsibility (CSR) reporting. We demonstrate that blockchain technology is suitable in the context of CSR reporting since there is a strong need for an immutable common database shared among various stakeholders with potential trust issues. We also argue that blockchain technology does not completely eliminate existing trusted third parties such as governments, international organizations that provide CSR reporting standards, major CSR reporting assurance companies and major CSR infomediaries. In particular, blockchain technology can be used as a platform that integrates all traditional trusted third parties, transforms their functions, and reduces their drawbacks for advancing CSR reporting. We also demonstrate that a permissionless public blockchain would be the most suitable structure.

Kunle Francis Oguntegbe, Nadia Di Paola, Roberto Vona

Purpose To communicate their sustainability and responsible management practices to the public, firms can leverage digital technologies both at the organisational and managerial levels. This study explores how firms' communications of responsible management contribute to sustainability in supply chains, as well as the role of blockchain in promoting responsible management. Design/methodology/approach Employing a qualitative methodology, the authors perform social media analytics (content analysis and sentiment analysis) on a dataset obtained from the social media posts of managers. Findings The study identifies eight key responsible management practices and shed new light on the role of blockchain in responsible management. The study results contribute to theory by linking responsible management practices with existing sustainability practices in the supply chain. The authors also demonstrate that blockchain enhances responsible management. Research limitations/implications Reliance on publicly available data from social media, comprising corporate statements emanating from managers is a major limitation in this study. Practical implications The eight responsible management practices identified in this study are recommended for managers of different supply chain echelons to promote sustainable supply chain management (SSCM). The study findings also offer new rationale for blockchain adoption in supply chains. Originality/value To the best of our knowledge, this is the first study to link the concepts of responsible management and SSCM. Moreover, the authors obtain empirical evidence from managers in the luxury fashion supply chain.

Simone Pizzi, Andrea Caputo, Andrea Venturelli, Fabio Caputo

Purpose The purpose of this paper is to evaluate blockchain’s enabling role for sustainability reporting. This study extends the scientific knowledge about the impacts related to the notarisation of mandatory sustainability reports through a publicly available blockchain. Design/methodology/approach Building on the idea journey framework, this paper presents the case study of Banca Mediolanum in Italy, a first-mover who notarised its non-financial declaration on a public blockchain to mitigate the information asymmetries that negatively impact stakeholder engagement. Findings The analysis reveals that the notarisation of the non-financial reports through a publicly available blockchain can represent a tool useful to mitigate the asymmetric information between organisations and stakeholders. Practical implications Although academics and practitioners have observed the benefits of its implementation, only a few companies have adopted blockchain systems to ensure their information’s reliability. The findings underline the opportunity for socially responsible organisations to signal their orientation towards sustainable development through the adoption of an innovative tool. Social implications The proliferation of non-financial reports prepared on mandatory basis mitigated the signalling effects related to the disclosure of non-financial information. The case study underlines the opportunity for socially responsible organisations to overcoming this criticism through notarisation. Originality/value To the best of the authors’ knowledge, this is the first study about sustainability reporting practices and blockchain. This research contributes to the currently scarce discussion about the role of blockchain in non-financial reporting. In addition, the authors contribute to the scientific conversation about the need to rethink assurance in non-financial reporting practices.

Dario Cerchiaro, Sabrina Leo, Emma Landriault, Paula De Vega

There are relevant pushes from Authorities and Supervisors on Financial Intermediaries’ disclosure of Environmental, Social, and Governance (ESG) reporting (mandatory from 2022). However, currently, there is no standardised reporting framework to ensure the information is readable, scalable and comparable, likely due to the novelty of these reporting requirements. The reporting practices used to date have made the ESG reporting process glaringly obvious, uneven, inconsistent, and difficult to compare data disclosures due to the variety of ESG rating models in the market, and the different interpretive approaches used by businesses. An impetus to overcome these critical issues is Distributed Ledger Technologies (DLTs). DLTs can process and package ESG reports streamlined by creating agile, transparent, and automated data collection processes. This paper aims to show how the challenges of mandatory ESG reporting can be solved by leveraging DLTs. We use a pilot use case that applies DLTs to ESG reporting for Asset Management Firms to demonstrate the applicability, benefits, and challenges of using this technology. We highlight the challenges faced by the financial industry when applying DLT and guide future research, since, to our knowledge, no studies are investigating the interlinkages between DLT and mandatory ESG reporting.

Ronny Correa‐Quezada, María de la Cruz del Río‐Rama, Claudia Patricia Maldonado-Erazo, Diego Fernando García-Vélez

No abstract is available for this record.

Kathleen M. Bakarich, John “Jack” Castonguay, Patrick E. O’Brien

ABSTRACT The changing dynamics of the accounting profession have been strongly influenced by emerging technologies and the demand for nontraditional metrics and information by stakeholders and regulators. In this article, we perform an exploratory content analysis to examine the role that blockchain technology can play in enhancing sustainability reporting and assurance. The benefits to companies and assurance professionals in using the distributed ledger technology of blockchain are increased trust, transparency, and traceability, which matches stakeholders' demands as it relates to sustainability reporting. This article identifies and analyzes potential and current use cases of blockchain in the United States and Canada to assist accountants and auditors in preparing and reviewing sustainability information. We highlight how augmenting traditional reporting systems with blockchain can overcome problems with sustainability reporting. We discuss implications for practice in detail—finding that blockchain is well‐positioned to provide reliable tracking and custodial support as it relates to sustainability information currently being self‐reported by many firms, such as greenhouse gas emissions, conflict mineral disclosure, or product provenance, among others. Expanded adoption of blockchains by companies will lead to higher‐quality information being included in sustainability reports and allow assurance professionals to verify a wider range of information, potentially leading to uniform standards in the evaluation of sustainability reports.

Camille Meyer, Marek Hudon

No abstract is available for this record.

Laurent E. Cartier, Saleem H. Ali, Michael S. Krzemnicki

Recent developments have brought due diligence, along with tracking and traceability, to the forefront of discussions and requirements in the diamond, coloured stone and pearl industries. This is a result of consumer demands for detailed information on the provenance of gems, banking requirements aiming to reduce risk, industry and company initiatives seeking to bring greater transparency, and growing government legislation on mineral supply chains. To address this trend, certification mechanisms and technologies (such as blockchain) are being developed to solve inherent traceability challenges. As applied to gems, such standards and associated technology could benefit from the support of existing gemmological approaches (e.g. geographical origin determination) to enhance traceability and transparency measures. Recent initiatives are not just limited to corporate social responsibility reporting and due diligence requirements, but they also embrace supply chain management (including quality control and process improvements)-for example, to correctly identify and disclose treated and synthetic materials throughout the jewellery industry-as well as address consumer demand for provenance information. This article provides an overview of current trends and developments in the tracking and traceability of gems, along with an explanation of the terms used in this context.