Blockchain-based carbon marketplace

Abstract

The present invention relates to a block chain based method of providing emission mitigating strategies for sustainability and environment protection from carbon emissions, wherein, the system evaluates the client's goals based on historical customer data and a set of customized predefined questions in order to discover the areas of relevance on the basis of operations and relevant greenhouse gas (GHG) emissions, wherein, the system also identifies the most efficient offsetting patterns for the client, highlighting where investments should be made as well as while offset purchases are being made, it will make specific carbon credit recommendations that align with the client's sustainability objectives and efforts toward meeting the SDGs relevant to customers thereby maximizing their overall sustainability strategy.

Description

[0001]FIELD OF INVENTION 5 The present invention relates to a block chain based method of providing emission mitigating strategies for sustainability and environment protection from carbon emissions. BACKGROUND OF INVENTION AND PRIOR ART 10 A block chain based marketplace is a platform that facilitates the buying and selling of carbon credits or offsets. These credits represent a reduction or removal of greenhouse gas emissions from the atmosphere. Companies or individuals looking to compensate for their own carbon emissions can purchase these credits to support projects that contribute to 15 environmental sustainability. Conversely, organisations that implement projects leading to emission reductions or removals can sell their generated carbon credits on the platform. Across industries and around the world, organizations are committing to combatting climate change by striving to balance or eliminate their carbon emissions. However, 20 obtaining a net zero balance or elimination of carbon emissions presents a serious challenge for many organizations. One solution for challenged organizations is to “offset” their carbon emissions production with an equal or greater carbon emissions reduction. A carbon credit is essentially a tradable certificate that permits the emission of greenhouse gases. Typically, one carbon credit gives the certificate holder the right to emit one metric ton 25 of carbon dioxide (CO2) or other GHG gases measured in terms of CO2 equivalent. Environmental and economic climate policies typically limit greenhouse emissions and put a price on them. In accordance with these policies, government or any authorised agency or registry may issue and assign carbon credits to local businesses, organizations, manufacturers, etc. Mostly, carbon calculation lacks industry-specific tailoring, and 30 offsetting practices often do not align with contextual relevance. Without robust due diligence and advocacy ensuring the quality of carbon credits, carbon markets will not reach their full potential in addressing climate change. Therefore, real-time technology-based mechanisms to evaluate carbon credit worthiness, quality, and price from structure and unstructured data on an ongoing basis from disparate sources is highly desirable. 35 Businesses lack cost-effective offsetting options to deliver on their ESG Goals transparently. Currently, Indian companies risk losing $274 billion in exports every year if they fail to curb carbon emissions by 2025: CDP 40 ● Global ESG assets to hit $53 trillion by 2025: Bloomberg ● 98 percent business leaders in India are facing major obstacles when implementing sustainability and ESG initiatives: CRISIL The currently existing pain points are: ● High cost ● Supply chain emissions ● Multiple vendors ● Gruelling processes 5 ● Time consuming ● Lack of expertise Therefore, the present invention tries to provide solutions to: ●Businesses 10 ● Corporates ● Industries ● Forest department ● Tribal and Farmer groups 15 BRIEF DESCRIPTION OF DRAWINGS Fig.1 illustrates the flow diagram of the block chain based carbon marketplace. DETAILED DESCRIPTION OF THE INVENTION 20 There are 4 stakeholders on the blockchain platform that are described as follows. The invention which is an OffsetGo Marketplace have identified methods to address the concerns of the 4 stakeholders which is provided herein below: 25 Buyers OffsetGo Marketplace provides a comprehensive suite of services catering to informed and thoughtful buyers seeking to actively engage in emissions management and sustainability initiatives. It transcends the conventional marketplace model by presenting a holistic suite of 30 services encompassing various emission mitigation strategies. • It facilitates the seamless acquisition of carbon credits, giving buyers the opportunity to not only procure credits but also retire them. • It also offer buyers the flexibility to choose from an array of services tailored to their 35 specific needs like carbon footprint accounting, organic decarbonisation strategy, net zero business, net zero products etc. This diversity ensures that buyers can adopt bespoke strategies aligned with their corporate sustainability goals. 40 Seller • It gives sellers the opportunity to register their project (which are pre-registered on any relevant registry and associated credits are already generated) on the OffsetGo Marketplace. This formal registration enhances visibility and acknowledgment among all 45 stakeholders participating in the marketplace. • It offers sellers to enlist the specific credits they intend to sell within the marketplace. Project Developers 5 By catering to the project developers, the platform not only facilitates the development of a spectrum of projects but also contributes significantly to broader mitigation endeavours and the overarching goals of climate action. • Project developers are afforded the opportunity to diversify their project portfolios in accordance with their specific requirements through consultations provided by the OffsetGo 10 Marketplace. • The Project developers engaging with the OffsetGo Marketplace have the advantage of obtaining an OG-Score, a comprehensive metric that assesses and quantifies the environmental impact incurred during the various stages of project development. 15 This scoring mechanism enhances transparency and accountability, aligning with the commitment to environmentally conscious and sustainable project initiatives Traders 20 They can trade the credits (buy & sell) on the marketplace, but won't be able to register a project or retire any credit. The main embodiment of the present invention is to provide a block chain based method of providing emission mitigating strategies for sustainability and environmental 25 protection from carbon emissions comprising methods and steps to cater to various business categories. Fig.1 illustrates the various steps with type of services that is explained herein below: 30 Project Development- Project development is the establishment and administration of initiatives aimed at the reduction of greenhouse gas emissions or the enhancement of carbon sequestration. This undertaking entails a sequential progression through various stages, characterised by a methodical identification, evaluation, documentation, and supervision of 35 the project until the issuance of credits via a recognized registry. This adherence to the prescribed guidelines of the registry ensures transparency and accountability within the carbon market. Insetting- Insetting refers to a method of carbon mitigation where emissions are reduced 40 within a company's own value chain or operations, rather than through external projects. This approach involves implementing measures to reduce emissions directly within the company's supply chain, production processes, or operational activities. The goal of insetting is to achieve real and measurable emission reductions while fostering sustainable business practices and contributing to climate action. 45 Protocol development for Insetting- Protocol development for insetting projects involves creating guidelines and procedures to implement carbon reduction and carbon storage 5 initiatives within a company's operations and supply chain. PDD- Project Design Document (PDD) is a document that provides detailed information about the project, including its methodology for calculating emissions reductions, the baseline scenario, additionality (i.e., demonstrating that the project's emissions reductions 10 are additional to what would have occurred without the project), and the project's social and environmental impacts. Furthermore, the document sheds light on the social and environmental impacts of the project, highlighting its broader implications beyond carbon reduction. 15 Monitoring Report- Monitoring report outlines how emissions reductions or carbon sequestration will be measured and reported throughout the project's lifecycle. Auditing- Auditing a project involves reviewing its processes and outcomes to ensure everything is on track and in line with expectations. This involves examining 20 documentation, evaluating potential risks, and physically verifying on-site that resources are utilised efficiently. Issuance- Upon completion of the project's lifecycle, the registry issues tradable carbon credits for your project. These credits are utilised by entities to offset their carbon emissions 25 or trade them with other companies. These credits can be bought and sold national and international markets. They serve as tangible representations of the emissions reductions achieved by your project and can be traded on carbon markets. This process facilitates the transfer of environmental benefits from your project to organisations seeking to mitigate their carbon footprint, fostering sustainability initiatives and promoting climate action. 30 OG scoring- OG scoring is the protocol scoring system developed by OffsetGo, which assigns gold, silver, and bronze ratings to projects based on their environmental impact, additionality, and other performance criteria set by OffsetGo. This scoring system serves as a comprehensive framework for evaluating the sustainability and effectiveness of carbon 35 offset projects. It considers factors such as the project's contribution to reducing greenhouse gas emissions, its ability to generate additional environmental benefits beyond business as usual, and adherence to rigorous standards and methodologies. Through OG scoring, OffsetGo ensures transparency and credibility in assessing projects. 40 Utilisation for Insetting- Utilisation for insetting projects involves effectively utilising carbon reduction and carbon storage initiatives within a company's operations and supply chain to achieve sustainability goals. Offsetting- Offsetting refers to a strategy employed to compensate for greenhouse gas 45 emissions by investing in projects that reduce or remove an equivalent amount of emissions from the atmosphere. These projects can include activities like renewable energy installations, reforestation efforts, or methane capture initiatives. By purchasing carbon 5 credits generated from these projects, individuals or organizations can effectively counterbalance their own emissions, thereby mitigating their overall carbon footprint. Protocol for offsetting- Developing a new protocol for carbon offset projects involves creating a systematic framework that establishes rules, methodologies, and 10 procedures for generating carbon credits. This protocol outlines the requirements and guidelines for quantifying emissions reductions or removals resulting from specific activities outlined for the project. The goal of a new protocol is to provide a standardised and transparent framework for facilitating carbon offset projects that contribute to mitigating climate change and promoting sustainable development. These protocols need to be 15 approved by any relevant registry to ensure the mitigation so that the project based on those protocols can be registered in the respective registry. Validation- Validation involves a thorough review and assessment by an accredited third- party auditor (known as a validator) to ensure that the project meets the requirements of the 20 chosen carbon credit standard or protocol After completing all stages of the project, including listing, project becomes registered with the registry, signifying its authenticity. This registration process serves as confirmation that the project has successfully 25 met the necessary criteria and standards, ensuring its credibility and compliance with established protocols. Verification- Verification of a carbon project encompasses an impartial evaluation conducted to validate the accuracy and reliability of the project's reported reductions or 30 removals of carbon emissions. This process typically involves on-site inspections, where auditors physically verify the implementation of emission-reducing activities and ensure compliance with established protocols. Carbon Footprint Calculation 35 Carbon 1,2 & 3) : Data collection via our proprietary CARBURN tool which comprises three forms: Employee Survey, Building & Inventory, and Management & Value Stream. These forms comprehensively cover each scope of the GHG Protocol, meticulously examining our clients' environmental aspects to obtain a robust 40 understanding of their emissions generation across operations. Carbon Calculation: We follow the guidelines and requirements of the GHG Protocol while conducting carbon accounting, applying the appropriate emission factors for Scope 1, 2, and 3 emissions. We use a comprehensive set of emission factors that 45 we have developed. In order to precisely and accurately calculate the footprint, we also compute factors by finding the emission data point and the location, which aid in the exact and accurate calculation of the footprint. 5 Analysis: Our analysis of Scope 1, 2, and 3 emissions meticulously examines direct emissions from sources owned or controlled by the client, indirect emissions from the use of purchased electricity, heat, or steam, and further indirect emissions spanning the entire 10 value chain.This meticulous examination assists clients in pinpointing areas that demand urgent attention and prioritisation. By identifying these critical sectors, we guide our clients towards making informed decisions on technological investments, aiming to cultivate a sustainable business model that addresses their most significant environmental impacts effectively. 15 Carbon Footprint Report: Generating comprehensive carbon footprint report post-analysis of emission data, highlighting risks, opportunities, and tailored recommendations based on our findings. Our approach ensures transparency, presenting the emissions data clearly to underscore the client's environmental impact. This comprehensive documentation serves as a 20 foundational tool for clients to understand their carbon footprint. Carbon Auditing: Carbon footprint report undergoes rigorous auditing by a third-party to ensure accuracy, transparency, and adherence to industry standards. This independent verification process adds credibility to the calculated emissions data, providing clients with 25 confidence in the reliability of our reporting. By demonstrating accountability and commitment to environmental stewardship, we uphold the highest standards of sustainability in our operations. Social & Governance Reporting 30 Social & Governance Survey: We conduct a comprehensive social and governance survey for clients using our CARBURN tool. This survey thoroughly covers their social and governance aspects, capturing details on policies, and actions taken in these areas. By leveraging CARBURN, we ensure a thorough examination of our clients' social and 35 governance practices. Based on the output of this survey, we do materiality assessment, analysis and publish an ESG report. Materiality Assessment: It involves identification of key material topics and risk associated, to determine their significance to the client’s business. This process helps us prioritise areas 40 for focus and action, ensuring that we address the most impactful issues affecting both operations and stakeholders. Analysis: Conduct an in-depth analysis across all facilities, products, and departments to pinpoint root causes. Utilise drill-down techniques to delve deeper into the data and develop 45 strategies aimed at enhancing Environment, Social & Governance metrics. In our analysis, we thoroughly examine our clients' material topics and assess the associated risks. By identifying these key areas, we offer insights into how other industry players are addressing similar challenges, empowering our clients to strengthen their environment, social and governance aspects. Our approach focuses on fostering informed decision-making and driving continuous improvement in line with industry best practices and emerging trends. 5 Social & Governance Auditing: We conduct third-party audits on the social and governance aspects of our clients' businesses, providing a comprehensive assessment of their policies and business conduct. Through this process, we analyse industry best practices and benchmark our clients' performance against competitors, identifying opportunities for 10 improvement and guiding them towards adopting leading-edge policies and practices. ESG Report: After a thorough analysis of the client's Environmental, Social, and Governance (ESG) aspects, we deliver a comprehensive ESG report tailored to the client’s specific needs. This automated report provides detailed insights into their ESG performance, highlighting 15 strengths, identifying areas for improvement, and offering actionable recommendations. Designed to align with the client's strategic objectives, our ESG report emerges as an indispensable instrument in steering sustainable and ethical corporate conduct. Recommendations: Following an in-depth evaluation of our clients' ESG dimensions, we 20 offer precise recommendations that address their present position and provide clear, actionable steps to mitigate gaps. Our advice is tailored to help them achieve parity with, or surpass, industry competitors by highlighting areas for improvement and growth opportunities. We guide our clients through best practices and innovative approaches to enhance their sustainability performance, enabling them to not only meet but exceed industry 25 benchmarks and foster better growth. SDG Score (Offsetgo): SDG scoring evaluates a company's overall performance by assessing its ESG impacts and alignment with SDG goals. Using a predefined set of criteria, we evaluate the company's progress, assigning a score that reflects its advancement towards 30 achieving all the 17 SDGs. This score serves as a metric of the company's sustainability efforts, with a perfect score of 100 denoting comprehensive achievement across all the goals. Target Setting (Long term, Short term goal setting / SBTI): We assist clients in setting ambitious net-zero or near-term goals aligned with science-based methodologies. By 35 leveraging SBTi frameworks, we ensure that our clients' sustainability objectives are grounded in robust scientific principles, enabling them to make meaningful contributions to climate action. Crafting NetZero objectives and formulating a strategic roadmap with the assistance of our team of climate experts. Our approach involves aligning goals with the latest scientific consensus, fostering accountability, and driving measurable progress towards 40 a low-carbon future. Internal carbon pricing policy & Carbon Tax: We assist clients in implementing internal carbon pricing strategies aligning with external carbon tax regulations specific to their countries. Through thorough analysis of country-specific carbon tax frameworks and 45 industry sector dynamics, we help companies determine appropriate internal carbon prices for their emissions. This process involves setting prices tailored to their financial capacities and strategic objectives, ensuring alignment with regulatory requirements while incentivizing emission reductions and promoting sustainability. Portfolio: In our offsetting portfolio, we customise our approach to meet each 5 client's unique needs and requirements. We carefully consider their emission patterns, industry-specific ESG goals and preferences, alignment to focused SDG goals and basis that we guide them through the process of understanding where to invest and which credits to purchase for offsetting emissions effectively. Our customised solutions ensure that clients have clarity on how to mitigate their environmental impact, aligning with their ESG 10 commitments and driving sustainable practices in their operations. Technical Description: The tool consists of a user interface (UI) that allows project managers, environmental consultants, and clients to input key project data. It uses cloud-based servers to store and process large datasets related to environmental parameters, including emissions, resource use, 15 and waste management. 1. Input Mechanism: The System lets the user input their query or project-related data through a customized dashboard. This user-friendly interface enables dynamic data entry, interactive dashboards, and report generation seamlessly. 2. Data processing: The system manages business logic for processes such as credit scoring, 20 emission factor updates, and project validation through integrated algorithms drawn from real-time databases like national environmental registries and proprietary data sets and thus calculates environmental variables such as carbon emissions, energy use, and water consumption among others. 3. Machine learning models: The system employs machine learning models that are trained on 25 historical data to predict future environmental impact, including carbon offset potential and sustainability scores. These models continuously update based on new project data and global environmental reports. It also suggests alternative pathways for project execution that can lead to reduced environmental impact, using comparative data from past projects. 4. Blockchain Integration: To ensure transparency and traceability, the system uses blockchain 30 technology to record key milestones of the project’s environmental performance, including the generation of carbon credits, mitigation actions, and progress towards sustainability goals. Each action taken during the project lifecycle is timestamped and securely stored, ensuring data integrity and allowing stakeholders to audit the environmental impact in real time. 35 5. Output and Reporting Features: The system generates comprehensive reports in accordance with multiple international sustainability frameworks and features customizable reporting formats that can be tailored to meet the specific requirements of clients, regulatory bodies, investors, or stakeholders. 40 One of the main embodiments of the present invention is to provide a method to buy, sell and offset carbon credits on block chain-based platform to avoid double counting of the credit and maintain transparency. In the provided framework, the outlined services can be broadly categorized into two main 45 groups: those serving the seller and those serving the buyer. Sellers engage in a series of procedures including protocol development, preparation of Project Design Documents (PDD), monitoring and auditing activities, registration of projects to the registry, validation & verification, monitoring & reporting, issuance of credits, OG Scoring, and utilization for insetting, among other tasks. 5 Similarly, buyers navigate through steps such as Carbon Footprint (CF) calculation, which encompasses processes like conducting carbon footprint surveys, performing accounting and calculations, conducting analyses, carrying out carbon auditing, and publishing carbon footprint reports. Additionally, buyers also engage in ESG reporting, which involves conducting surveys on environmental, social, and governance aspects, performing 10 materiality assessments and analyses, conducting audits, providing recommendations based on carbon footprint and ESG reports, establishing SDG Scores, setting targets, formulating internal carbon pricing policies and carbon tax strategies, and constructing offsetting portfolios to procure relevant carbon credits based on their emission patterns and ESG commitments. 15 Onboarding Description: It is the initial stage which involves the onboarding of stakeholders like Buyers, Sellers or traders. This starts with KYC steps to verify the user's identity, compliance, and eligibility to use 20 the platform. The user submits identity proof and other required documentation asked for by the tool. The platform then conducts a background check to ensure all regulatory and market requirements are met and Upon approval, the user is granted access to use the services of the platform. Project Development & Registration on international registries 25 Description: This phase focuses on the development and formal registration of carbon reduction projects on the international registries to generate carbon credits ensuring that the project aligns with international carbon market standards. The person or organization involved in development of projects are known as Project developers. 30 Project developers open an account on the respective registry, where they want to register their project and submit all the required documents to the registry. They design and submit detailed proposals for their carbon reduction projects, which undergo several steps in getting the issuance done, which can be then traded on carbon marketplace platform. The platform reviews the technical feasibility and compliance 35 with respective registries such as CDM, VCS, or Gold Standard. Once approved, the project moves into a registration phase, which involves public posting for review, validation, verification, auditing before issuance of credits. Protocol Development Description: This step involves determining if existing protocols are suitable for the project. Otherwise, a new protocol is required for the registration. it undergoes a systematic development phase to create customized methodologies and standards to 5 follow for carbon credit generation. It begins with a rigorous examination of relevant standards, methodologies, and data collection which incorporates input from project developers, auditors, and subject matter experts to ensure comprehensive coverage of all key aspects. From this, a detailed set of guidelines for carbon accounting, description of the baseline, and 10 procedures for monitoring impacts on projects is developed. It also covers definition of eligible project activities, crediting periods, and environmental safeguards to be followed. To achieve this and have a structured format, the registries may provide a specific format for an initial idea note, which once approved, leads to the submission of a 15 methodology concept note, including baseline assessments and GHG quantifications. Based on that, a draft methodology is prepared and undergoes a public consultation process. Once approved, a Validation and Verification Body (VVB) assessment is conducted for assurance of adherence with all necessary requirements. Upon successful completion of these stages, the final protocol is published by the 20 registry on its website, making it available for use by the protocol developer and other registry users. PDD (Project Design Document) Creation Description: The PDD is a foundational document outlining the project’s objectives, 25 design, carbon reduction goals, and operational plan. Apart from this, it carries all the basic information of the project like project proponent, project boundaries, location of the project, crediting period and so on. It encompasses emission baselines and projected reductions, along with a detailed 30 explanation of the methodology applied for carbon reduction calculations. Additionally, it includes information on additionality of the project, activity description, regulatory compliance, and a comprehensive outline of the methodology and parameters utilized throughout the project. The PDD serves as the foundation for monitoring and validation processes, ensuring that projects adhere to set goals. 35 Developers prepare the PDD, which is submitted for review to ensure alignment with global carbon standards and registry norms. The PDD is then uploaded to the registry website and the proponent provides listing representation on the template provided by the registry and also the proof of validation contracting with VVB, who is authorized to validate the project on that registry. The registry reviews the PDD and the other 5 documents and after successful fulfilment of requirement, they list the project as under development status and open it for public comment for 30 days. Validation 10 Description: Independent validation ensures that the project is correctly designed and that its carbon reduction claims are credible. An external auditor (Validation and Verification Body - VVB) reviews the PDD and 15 evidence of project ownership of the proponent and then after thorough review of the said documents the VVB provides validation report and validation representation to the project proponent, which will further be uploaded to the registry during registration of the project. 20 Monitoring Report: Description: The Monitoring Report is a crucial document that provides a comprehensive record of the project's performance in relation to its carbon reduction targets. It includes detailed data on emissions reductions, project activities, and the overall environmental impact observed during the reporting period. 25 It includes a Monitoring Plan as defined in the Project Design Document (PDD) and has details of equipment and techniques used for data collection, measurement intervals, and quality assurance protocols. Then comes actual data collection which involves monitoring emission sources and gathering all relevant parameters and variables used to quantify greenhouse gas (GHG) reductions. This includes a comprehensive 30 breakdown of the recorded data, providing a clear comparison between actual emissions reductions and the baseline scenarios established in the project. Additionally, detailed logs are maintained, capturing operational data such as activity levels, energy consumption, and other factors that directly influence the project's carbon footprint. It also has a comparison of the verified emissions reductions against the expected 35 outcomes outlined in the project plan. It also covers Implementation Status of the Project Activity and highlights Deviations and adjustments done due to any unforeseen circumstances, if any. Apart from all these, it also covers a safeguard section which ensures that the project has not done any harm to the environment, specific steps the project has followed as required by the type of project it falls in and the positive impacts 40 it has created to the environment & stakeholders involved. The report is prepared and compiled by a project proponent and verified by a third- party Validation and Verification Body (VVB) to ensure transparency and accuracy. Upon verification, the report is submitted to the relevant carbon registry for certification of the emissions reductions and issuance of carbon credits. 5 10 Verification: Description: Verification confirms that the project meets the necessary standards and carbon credits generated by the project reflect real, measurable, and permanent 15 emissions reductions. The VVBs verifying the project’s emission reduction charge a fee for their service from the project proponent. Independent verification is performed by accredited VVBs by the respective registries based on comparison between their PDD and monitoring report having real-time 20 project data. In some cases, VVB also asks for the calculation spreadsheet to complete the verification accurately. Upon verification, the report is submitted to the relevant carbon registry for certification of the emissions reductions. Issuance of Carbon Credits Description: For the successfully registered project, after successful validation and 25 verification, calculated verified emissions reductions are converted into carbon credits that can be sold on the marketplace. These issued credits are then made available for trading or retirement, depending on the user’s goals. Once the project is registered and started reducing emissions, the registry creates 30 credits record and performs automated checks & generates credit serial numbers and then sends invoice for credit issuance levy to project developer / proponent and after getting the issuance payment registry deposits credits into project proponent’s account. Note: For all the stages of the above-mentioned project development process, our tool assists the client in the whole registration process and getting the issuance done 35 from the registry. Auditing: Description: Auditing involves the methodical inspection and validation of a firm's operations, data, or financial documentation to guarantee precision, regulatory compliance, and alignment with preset criteria. This process offers an impartial evaluation to validate that activities are carried out as planned, highlighting any inconsistencies or opportunities for enhancement. Throughout the entire process of project development, GHG emission calculation, energy consumption analysis, life cycle assessment, or ESG reporting, if a client requests an audit 5 to validate their progress at any stage, our tool will promptly capture and process that request. The tool is equipped with a predefined set of questions, designed in alignment with various national and international standards across different stages and types of audits. After the customer picks the desired audit type, the tool displays the corresponding form. Upon completion, the tool compares the submitted information 10 against established standards and generates an output. The tool also routes the submitted information to the internal audit team, who subsequently performs an on- site verification to verify data accuracy and alignment with specified standards. OG Scoring: 15 Description: It is a proprietary scoring system used in the platform to evaluate carbon credits based on their environmental impact and overall contribution to sustainability. The OG score takes into account factors such as the type of project, vintage, technology used, and alignment with environmental and social goals. This scoring system helps buyers make informed decisions by providing a clear, transparent measure of the 20 credit's value in terms of its contribution to climate action and sustainable development. The tool operates using its proprietary algorithm, which relies on already set specific parameters. When a client seeks to assess their credit, the tool generates a personalized questionnaire tailored to the nature of the project generating the credits. Subsequently, 25 the tool computes a real-time score derived from the customer's input, which is then displayed on the customer's dashboard. Carbon Footprint Calculation: Description: The Carbon footprint service Serves as the foundation for understanding 30 the user’s current emissions, allowing for more precise goal setting. In this, a detailed carbon footprint is calculated, covering Scope 1, 2, and 3 emissions. This forms the basis for further reduction strategies. The carbon footprint assessment process begins with data collection on activities like energy consumption, transportation, and waste management, followed by identifying 35 both direct and indirect emission sources. Using internationally recognized methodologies, emissions are calculated in CO2 equivalents (CO2e), covering Scopes 1, 2, and 3. The data is then analyzed to determine the total carbon footprint, with a focus on key areas of impact. Carbon Footprint Survey: Description: The survey form is tailored to evaluate the carbon footprint of any entity. 5 Our tool divides the carbon footprint assessment into two main categories: Scope 1 & 2, and Scope 3. Customers can choose which scopes to address. Once the selection is made, the tool generates a basic form prompting users to provide basic information about the location or units to be included for its footprint assessment. These locations are classified into corporate offices, warehouses, retail units, and manufacturing units, with 10 customers specifying the number of each such locations to be included in survey. Moreover, a distinct form is available for single entities, encompassing location types like schools, colleges, hospitals and others not covered in the initial categories. Our tool features a pre-existing algorithm that incorporates a set of questions tailored for various carbon footprint categories, named as survey forms which can be 15 customized based on the customer's unit selection. Upon choosing a particular location type, the corresponding form is presented for completion and submission. The questions in these forms are created based on GHG protocols, ISO 14064, IPCC and other national and international standards. Carbon footprint Accounting / calculation 20 Description: The calculation of a carbon footprint entails measuring the amount of greenhouse gas emissions generated by an entity and expressing them in terms of carbon dioxide equivalents (CO2e). This assessment generally encompasses three types, which includes direct emissions from sources that are owned or controlled by the entity, such as on-site fuel combustion and emissions from vehicles or equipment called 25 Scope 1 emissions, indirect emissions resulting from the consumption of purchased energy, like electricity, heating, and cooling named as Scope 2 emissions and all other indirect emissions associated with the entity's activities, such as the extraction and production of raw materials, transportation of goods and services, and the use / disposal of products known as Scope 3 emissions. 30 Our tool features a pre-existing algorithm that incorporates a set of questions tailored for various carbon footprint categories, along with emission factors corresponding to the potential responses customers may provide. Once the client submits the completed forms, the tool automatically computes the carbon footprint. 35 We have curated a unique repository of emission factors for calculating greenhouse gas emissions. These factors are meticulously crafted in alignment with various national and international standards such as GHG protocols, the India GHG program, Defra, US- EPA, as well as standards from New Zealand, Australia, and other countries globally, including various localities within these nations. This detailed approach ensures that emission calculations are finely tuned to the specific data provided by the customer, enabling localized emission assessments. 5 Analysis: Description: Our tool offers various types of analyses related to carbon footprint calculation and ESG reporting such as trend analysis, industry gap analysis, peer 10 benchmarking, predictive analysis, neighbor gap analysis, KPI analysis, among others. Additionally, it includes materiality analysis and impact analysis. For all these services, our tool provides tailored questionnaires based on the client's industry type. Once the client selects the desired analytical service, the company receives 15 a customized set of data to complete, and our tool's algorithm then analyzes this data in real-time to generate instant recommendations. 20 Carbon footprint report: Description: A carbon footprint report is a detailed assessment of the greenhouse gases emitted by the entity within the boundaries of Scopes 1, 2, and 3. It helps organizations ascertain where emissions are coming from, devise measures to reduce them, and meet 25 the legal obligations to ‘bring down the carbon’. The report helps in sustainability reporting, cross-comparison with other companies in the same industry, and helps in the improvement with the course of time. Our tool features a well-defined carbon footprint report format that is seamlessly 30 integrated with a questionnaire on carbon footprint and emission factors used to calculate those. This integration allows customers to input relevant information, enabling the tool to automatically calculate the carbon footprint. Additionally, the tool is designed to know precisely how and where to incorporate this data into the report. The report not only includes the calculated footprint but also comprises an analysis of risks 35 and opportunities, as well as the alignment of the entity with Sustainable Development Goals. Once customers have filled in the required information, they can click on the generate report button within the tool. This action prompts the appearance of a draft report based on the provided data. Customers also have the option to further customize or publish the report based on their preferences and additional input. 40 Social & Governance Survey: Description: For ESG reporting services, clients are required to complete both a social & governance survey form and a carbon footprint survey. This is because the ESG report evaluates the company's overall sustainability performance, offering a comprehensive analysis of its environmental, social, and governance parameter. 5 Our tool includes a comprehensive questionnaire for the OffsetGo ESG Report, which is developed in alignment with global ESG standards such as BRSR, CDP, TCFD, SASB, among others. It covers all aspects of Environmental, Social, and Governance factors, tailored to the specific industry in which the client operates, to accurately measure their 10 performance. Clients simply select the type of report they need, and the tool presents the relevant form for them to complete. Materiality Assessment: 15 Description: It refers to the process of identifying and prioritizing environmental, social, and governance factors that are most relevant and significant to a company's operations, stakeholders, and long-term success. It allows organizations to concentrate on the problems that have the highest potential impact on their financial performance, reputation, and sustainability efforts in a way that brings ESG reporting into alignment 20 both with internal priorities and external stakeholder expectations. Based on the information provided in the ESG questionnaire, our tool analyzes the data and identifies material topics for the client. This helps the client articulate their actions on these key issues, for even those new to ESG can understand what to focus on for 25 improved sustainability performance. It also brings together operational and financial priorities into one to guide the client to improve their overall ESG strategy to achieve better results in the long term. ESG reporting: 30 Description: ESG reporting is disclosure of a company's environmental, social, and governance performance, hence giving the all-inclusive view of sustainability efforts. This facilitates an organization's ability to track its sustainability initiatives for better improvement, ensuring regulatory compliance and staying abreast with industry 35 standards. ESG reporting improves transparency, supports better risk management and drives long-term business growth by aligning with sustainability goals. When a customer selects the type of ESG report they need, our tool integrates the chosen reporting format with the data they have provided, generating a real-time report 40 that calculates the company's performance on environmental, social, and governance parameters. The tool supports global reporting standards such as BRSR, CDP, TCFD, SASB, as well as OG-ESG, which is based on our own proprietary questionnaire, developed by considering various global formats and standards. If there is a discrepancy between the data provided and the report format, the customer will receive a partial report reflecting only the portions where complete information has been submitted. SDG Score: 5 Description: SDG scoring reflects a business's alignment with the United Nations' Sustainable Development Goals, which are global priorities including poverty reduction, climate action, and social equity. Measurement across relevant goals will help corporations assess their contributions to sustainable development. SDG scoring is 10 considered important keeping in mind that businesses should align their operations with global sustainability goals to improve their reputation, build stakeholder trust, and drive long-term value creation. We have an entire set of questions that is designed to align with all the relevant SDG impacts. When the customer fills and submits the questionnaire, our tool calculates the 15 impact using preset algorithms and built-in calculations, which then determines a corresponding SDG score based on the data submitted. Target Setting: Description: Target setting in sustainability refers to the process of defining specific, measurable goals and set clear, time-bound objectives for reducing greenhouse gas 20 emissions over specified timeframes and aligning with sustainability strategies, that guide an organization's efforts to improve its ESG performance. These targets are often aligned with the Science-Based Targets initiative (SBTi) and other global directives, and it includes reducing carbon emissions, improving energy efficiency, enhancing social impact, or promoting ethical governance to ensuring progress towards long-term goals 25 such as decarbonization, resource conservation, and social responsibility. Our tool supports various types of target setting, including decarbonization strategies, long-term and short-term goals, and SBTI target setting. It features a structured set of questions designed for management to define the company’s sustainability targets based on their data input. For those unfamiliar with target setting, the tool offers 30 recommendations for suitable targets, referencing previously filled data, industry trends, and real-time inputs. Clients can set short-term goals for immediate reductions, long-term goals for decarbonization, resource conservation, and social responsibility, SBTi target setting to meet climate objectives such as limiting warming to below 2°C. This service is customizable for the clients. Once targets are set, the data is frozen after a 35 period, and any changes due to financial, operational, or market factors require submission of documentary proof from management to adjust the targets. ICPP: Description: Internal carbon pricing is a form of policy wherein an organization applies a price value to its own generated carbon emissions to reflect the environmental cost of conducting business; hence, it helps companies to integrate the cost of carbon in business decisions with investments in low-carbon technologies and practices. Internal 5 carbon pricing, therefore, would encourage reductions in those emissions, prepare for regulatory changes in future, and most importantly, be aligned with broader goals of sustainability and decarbonization; it effectively mitigates the financial risks that climate change imposes and makes company future ready for carbon tax. Our tool operates by allowing companies to set their environmental cost targets in 10 relation to business operations and growth, providing guidelines for investments in areas critical to achieving long-term sustainability goals. For new services, the tool presents a predefined set of questions, including revenue and expected growth, to help structure a comprehensive carbon policy. When setting a decarbonization strategy, the tool utilizes previously submitted data to assist in formulating the plan. While customers 15 can define their own investment targets, the tool also recommends an investment target based on historical data or input during the ICPP form submission. It further provides a detailed breakdown of where and how much investment is needed for sustainability. 20 Offsetting Portfolio: Description: An offsetting portfolio is a portfolio of carbon offset projects or credits that companies invest in to balance out their unavoidable emissions. The role of an offsetting portfolio is to make organizations achieve carbon-neutrality or lower their net emissions through funding ventures of carbon-reduction projects. An offsetting portfolio can 25 identify areas of investment, therefore, where the company needs to invest to effectively reduce their emissions. That way, organizations will be able to invest where they would like to see the most impact in terms of sustainable development going forward. The tool evaluates the client's goals based on historical customer data and a set of customized predefined questions in order to discover the areas of relevance on the basis 30 of operations and relevant greenhouse gas (GHG) emissions. The tool also identifies the most efficient offsetting patterns for the client, highlighting where investments should be made as well as while offset purchases are being made, it will make specific carbon credit recommendations that align with the client's sustainability objectives and efforts toward meeting the SDGs relevant to customers thereby maximizing their overall sustainability 35 strategy.

Claims

5 I CLAIM:

1. A system for managing sustainability metrics and carbon management, comprising: ^ A unified platform that integrates carbon footprint calculations, ESG reporting, SDG scoring, internal carbon pricing, and carbon offsetting processes; ^ An Integrated Carbon Management System (ICMS) for offsetting carbon emissions using a blockchain-based mechanism for the sale and purchase of carbon credits; ^ A process for insetting comprising protocol development, Project Design Document (PDD), monitoring report, auditing, verification / monitoring report, issuance, OG Scoring, and utilization; ^ A process for offsetting comprising protocol development, PDD, monitoring report, validation, projection registration to a registry, verification / monitoring report, credit issuance, OG scoring, and sale of carbon credits; ^ A net-zero journey management module, comprising: o A carbon footprint (CF) calculation process that includes conducting a carbon footprint survey, calculating and analyzing carbon emissions, and generating recommendations for reduction, SDG score setting, target establishment, and internal carbon pricing or carbon tax policies; o An ESG reporting process that includes conducting environmental, social, and governance (ESG) surveys, performing material assessments, and publishing an ESG report with recommendations for aligning sustainability goals, determining SDG scores, setting targets, and developing an offsetting portfolio; ^ A user input module for gathering project-specific environmental data; ^ An AI-based engine for predicting environmental impact; ^ A blockchain ledger for recording and verifying project milestones and environmental data; ^ A customizable reporting feature that aligns with international sustainability frameworks.

2. The system as claimed in claim 1, wherein the said AI-based engine uses machine learning models trained on historical project data to recommend alternative methods for reducing the environmental footprint of the project and for various analysis.

3. The system as claimed in claim 1, wherein Insetting involves creating guidelines and procedures to implement carbon reduction and carbon storage initiatives within a company's operations and supply chain.

4. The system as claimed in claim 1, wherein, the registry issues tradable carbon credits that serve as tangible representations of the emissions reductions achieved by the projects and can be traded on carbon markets. 5 5. The system as claimed in claim 1, wherein the system facilitates the transfer of environmental benefits from the project to organizations seeking to mitigate their carbon footprint, fostering sustainability initiatives and promoting climate action.

6. The system as claimed in claim 1, wherein the system comprises of OG scoring which is a scoring system for evaluating the sustainability and effectiveness of carbon offset projects based on a proprietary scoring algorithm incorporating parameters such as vintage, technology type, environmental impact, and alignment with sustainability goals which is calculated by the project's contribution to reducing greenhouse gas emissions, its ability to generate additional environmental benefits beyond business as usual, and adherence to rigorous standards and methodologies and ensures transparency and credibility in assessing projects.

7. The system as claimed in claim 1, wherein offsetting refers to a strategy employed to compensate for greenhouse gas emissions by investing in projects that reduce or remove an equivalent amount of emissions from the atmosphere that includes activities like renewable energy installations, reforestation efforts, methane capture initiatives among others.

8. The system as claimed in claim 7, wherein by purchasing carbon credits generated from these projects, individuals or organizations can effectively counterbalance their own emissions, thereby mitigating their overall carbon footprint.

9. The system as claimed in claim 1, comprises data collection via a CARBURN tool, with a system generating dynamic, industry-specific questionnaires in real-time, based on GHG protocols and ISO 14064, ensuring accurate data collection tailored to global sustainability standards such as BRSR, CDP, TCFD, SASB and others.

10. The system as claimed in claim 1, wherein the data collection comprises of three forms: Employee Survey, Building & Inventory, and Management & Value Stream.

11. The system as claimed in claim 1, wherein the guidelines and requirements of the GHG Protocol are followed while conducting carbon accounting, applying the appropriate emission factors for Scope 1, 2, and 3 emissions.

12. The system as claimed in claim 11, wherein, scope 1, 2, and 3 emissions meticulously examines direct emissions from sources owned or controlled by the client, indirect emissions from the use of purchased electricity, heat, or steam, and further indirect emissions spanning the entire value chain.

13. The system as claimed in claim 1, is a modular workflow for managing carbon credit projects, automating processes such as Project Design Document (PDD) creation, monitoring, and verification, reducing manual intervention.

14. The system as claimed in claim 1, offers industry-specific frameworks for setting decarbonization and sustainability targets, including alignment with Science-Based Targets initiatives (SBTi). 5 15. The system as claimed in claim 1, has a framework incorporating real-time predictive analytics to model future sustainability outcomes and provide recommendations for operational and financial improvements.

16. The system as claimed in claim 1, calculates internal carbon prices, integrating organizational revenue, growth projections, and decarbonization targets, and generating investment strategy recommendations for sustainability initiatives.

17. The system as claimed in claim 1, wherein a comprehensive set of emission factors tailored to national and regional standards are dynamically integrated and used to precisely and accurately calculate the footprint, the factors are computed by finding the emission data point and the location, which aid in the exact and accurate calculation of the footprint across geographies.

18. The system as claimed in claim 1, has a framework designed to conduct automated checks for validation and verification of sustainability projects, aligned with international compliance standards and UNFCCC protocols.

19. The system as claimed in claim 1, system performs materiality assessments and SDG alignment scoring, integrating environmental, social, and governance data for comprehensive impact evaluation 20. The system as claimed in claim 1, wherein it is configured to automatically generate standardized sustainability reports, including carbon footprint, ESG performance, and SDG impact assessments, integrating predictive analytics and peer benchmarking which provides detailed actionable insights into ESG performance, highlighting strengths, identifying areas for improvement, and offering actionable recommendations designed to align with the strategic objectives.

21. The system as claimed in claim 20, wherein the ESG report emerges as an indispensable instrument in steering sustainable and ethical corporate conduct.

22. The system as claimed in claim 1, wherein, SDG scoring evaluates a company's overall performance by assessing its ESG impacts and alignment with SDG goals, wherein, the company's progress is evaluated, assigning a score that reflects its advancement towards achieving all the 17 SDGs the said score serves as a metric of the company's sustainability efforts, with a perfect score of 100 denoting comprehensive achievement across all the goals.

23. The system as claimed in claim 1, enables buyers, sellers, and traders to interact transparently on a blockchain-based marketplace, including features for credit pricing, negotiation, and real- time transaction tracking.

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