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 Lifecycle | Issuance (Tokenization) | Subscription & Distribution | Secondary Trading | Asset 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 InstrumentsAchievements to Date
Green Bond Smart Contract Templates & Workflows(Bond Structures, ICMA Green Bond Principles)
Impact Reporting on Tamperproof Shared DatabaseDLT & Non DLT System Information Flows – API ConnectivityMultiple Payment OptionsLegal Review & CertaintyIn Pipeline
IoT ConnectivityReal Time Impact ReportingSustainability Linked Instruments