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- The goal of the Venture Climate Alliance is to make private tech investing more climate-friendly.
- VeChain technologies are helping enterprises integrate data throughout their supply chains, analyze their global impacts with carbon footprint, and take action to reduce them.
On Tuesday, April 25, a group of venture capital firms including Tiger Global and Union Square Ventures decided to set up an alliance that seeks to make private tech investing more climate-friendly.
Dubbed the Venture Climate Alliance (VCA), this coalition comprises more than 20 climate tech and generalist funds that push the VC industry to increase its commitment to climate tech. The alliance lays guidance for VC members and other portfolio companies to ensure that they achieve net-zero emissions goals by 2050.
Portfolio companies shall receive guidance on decarbonizing their operations by deploying less energy-intensive software, using emission-free data centers, or rebuilding supply chains with low-carbon initiatives.
As per the statement, VCA’s goal is to;
ensure that methodology and metrics are at the heart of how we determine what is a good climate investment, and what investment will have the greatest positive effect on the mission to build tech for a regenerative world.
The good thing about VCA is that it has the blessings of the United Nations. Also, the UN has approved VCA as part of its Race to Zero campaign aimed at mobilizing climate change. Being part of VCA, generalist firms will have to periodically assess their carbon footprint and re-align themselves with the goal of net-zero emissions. Also, VC firms that signed up for this alliance will have to ensure to save at least 100 megatons of carbon dioxide emissions.
Several blockchain networks such as IOTA and Vechain have extended their support and contribution towards climate chain and reducing the carbon footprint.
VeChain and sustainable development
One area that VeChain has been very serious about from the very beginning is sustainable growth. Over the past few years, the crypto industry has faced massive criticism over its carbon footprint, especially platforms such as Bitcoin that use the Proof-of-Work (PoW) technology.
Among all the blockchain players in the market, VeChain has managed to stay the greenest blockchain platform currently in the market. It has been reported that the VeChain blockchain has been able to facilitate crypto adoption due to its low transaction fees and high throughput. However, the ecosystem has contributed to 4,459.41 kg of carbon emission and a total of 1,789.58 kg this year. The estimated financial cost of these carbon emissions has been calculated at $143 year-to-date, after reaching $357 in the previous year.
Enterprises are utilizing VeChain’s technologies to integrate data throughout their supply chains, analyze their global impacts, and take action to reduce them. Additionally, these technologies are facilitating the development of cross-industry ecosystems that create new connections between global societies.
Sustainable development is about much more than the environment – it also encompasses economic and social elements.#Blockchain empowers everyone in society to make better, smarter choices, with far greater access to information than ever before, creating impactful opportunities… pic.twitter.com/8ay0N2HRPS
— vechain (@vechainofficial) April 26, 2023
VeChain has been working closely with the Boston Consultancy Group which has been the leader in the space for sustainable development.
