A newly established joint venture involving three Singapore-based technology firms is collaborating with various industry stakeholders to develop a platform aimed at providing small and medium-sized enterprises (SMEs) with essential carbon tracking tools and green financial services.
Founded by Ascent Solutions, Evercomm, and Hashstacs, CO2X is creating a platform designed to assist businesses and the financial sector in navigating the intricate regulatory landscape and costly certification processes that often impede the adoption of sustainable practices, particularly for SMEs.
The CO2X platform aims to enable companies to monitor their carbon footprint effectively, allowing them to establish benchmarks and formulate data-driven strategies for emission reduction. This, in turn, can lead to decreased fuel and energy costs. Additionally, businesses can leverage the data and reports generated by CO2X to achieve green certification in accordance with international standards.
In a further development, CO2X is positioning itself to attract green financial services, such as sustainability-linked loans and insurance products, by issuing certified carbon avoidance certificates recorded on the blockchain. Notable banks like OCBC and UOB, along with Aviva Singlife, have signed a memorandum of understanding to explore this initiative.
Linus Goh, Head of Global Commercial Banking at OCBC, stated, “The rationale for pursuing sustainability is increasingly evident for enterprises across various sectors and regions. However, for genuine progress to occur, SMEs must have accessible methods for measuring and tracking their carbon emissions. We are pleased to collaborate with CO2X as it endeavors to fill this gap across diverse industries. We believe that this technological solution will complement our green and sustainability-linked loans, facilitating a successful transition for our SME clients throughout the region.”