OUR SOLUTIONS

ESG Financing on DLT

Powered by STACS Blockchain Technology​

Access to Capital and Distribution Networks

There are mismatches between green project goals and investors’ diverse SDG goals. In addition, green projects are often smaller in nature, limiting upside in investment and hence seen as less attractive to investors

Data Standardization

Different ESG frameworks and metrics exist, making it difficult for investors to make comparisons. Investors are also wary of financing projects that do not strictly fit the criteria of a green bond (greenwashing).

Data Transparency and Impact Reporting

Lack of availability and transparency in certification and verification makes investors lack confidence over authenticity and timeliness of impact reporting.

Usage of Proceeds

Investors are wary that the investments they make into a green project might not be channelled to the right cause or use in accordance with principles and standards.

Bond/Loan Tokenization

Agriculture Farm Financing
  • Loan/Bond parameters & green elements are programmed into security token
  • Gains from automation enable smaller and
    minimum lot sizes for inclusion

Subscription

’50 Shades of Green’
  • Subscription eligibilities and ESG investment mandates are enforced using smart contracts
  • Smart contracts provides efficient DvP settlements

Usage of Proceeds

‘Greenlisted’ Suppliers
  • Funds can only be sent to green certified suppliers, enforced by smart contracts. This can be across multiple layers of suppliers
  • Usage of proceeds are managed and transparent on blockchain

Sustainability-linked Corporate Actions

Interest Payouts
  • Interest payouts & redemption of principal are automatic
  • Smart contracts support Sustainability-linked bond/loan payments based on KPIs

Impact Reporting

Qualitative & Quantitative
  • Connectivity with data sources, eg IoT, satellite images etc. Transparent impact reporting prevents greenwashing
  • ESG information can be tagged onto token and made publicly available

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STACS Across ESG Assets Lifecycle

Trade LifecycleIssuance (Tokenization)Subscription & DistributionSecondary TradingAsset Servicing
Conventional
Bonds

Enable digitalisation of securities and documents with audit trail

Programming of conditional business logic for downstream benefits

Enforce eligibility

Manage integrity of orders & holdings on a distributed ledger

Automate movement of funds with multiple payment channels, for efficient settlements

Enforce trading eligibility

Tracking of transactions in an audit trail

Maintain integrity of investor holdings

Remove need for reconciliations

Automate coupon and principal payments using ledger of investor
holdings
ESG Bonds
Programming of ESG conditional business logic for downstream benefits
Enforce subscription eligibility based on ESG mandate
Enforce trading eligibility based on ESG mandate
Impact reporting on usage of proceeds
Track and/or enforce usage of proceeds to different ‘ESG suppliers’
Management of Proceeds

Some Achievements So Far…

Achievements to Date

Green Bond Smart Contract Templates & Workflows
(Bond Structures, ICMA Green Bond Principles)
Impact Reporting on Tamperproof Shared Database
DLT & Non DLT System Information Flows – API Connectivity
Multiple Payment Options
Legal Review & Certainty

In Pipeline

IoT Connectivity
Real Time Impact Reporting
Sustainability Linked Instruments

Achievements to Date

Green Bond Smart Contract Templates & Workflows
(Bond Structures, ICMA Green Bond Principles)
Impact Reporting on Tamperproof Shared Database
DLT & Non DLT System Information Flows – API Connectivity
Multiple Payment Options
Legal Review & Certainty

In Pipeline

IoT Connectivity
Real Time Impact Reporting
Sustainability Linked Instruments