Please describe your proposed solution.
Background
All companies are required to track and submit their financial statements to the relevant authorities in most jurisdictions. Business managers and investors rely on these financial accounting statements to make decisions. However, these statements do not take into account the impacts on employees, customers, the environment, and society as a whole. This results in decisions that have a negative impact on the environment and society.
At Socious, we recognize the imperative need for accurately measuring and valuing a company's impact on society and the environment. The absence of clear, transparent impact metrics means that decision-making is predominantly influenced by financial considerations, neglecting the broader implications on people and the planet. To address this gap, we advocate for the integration of 'impact accounting' into the standard corporate reporting framework. This approach would place the assessment of societal and environmental impacts on an equal footing with financial reporting, ensuring a more holistic and responsible approach to corporate decision-making. By embedding impact accounting into corporate obligations, akin to financial statement submissions, we aim to foster a more sustainable and conscientious business environment."
This is already happening. European companies, particularly those in the EU, are increasingly required to report on their social and environmental impact. Key obligations include:
- Non-Financial Reporting Directive (NFRD): This directive applies to large public-interest entities with more than 500 employees. It mandates the disclosure of information on the way they operate and manage social and environmental challenges.
- Corporate Sustainability Reporting Directive (CSRD): Set to replace the NFRD, the CSRD will expand the scope to include all large companies and all companies listed on regulated markets (except listed micro-enterprises). It requires more detailed reporting and ensures that sustainability information is more consistent and comparable.
- EU Taxonomy Regulation: This is a classification system, establishing a list of environmentally sustainable economic activities. It requires large companies covered by the NFRD to disclose the proportion of their activities that are aligned with this taxonomy.
- Sustainable Finance Disclosure Regulation (SFDR): Applicable to financial market participants and financial advisers, it requires them to disclose how they integrate ESG (environmental, social, and governance) risks in their investment decisions and advisory processes.
These regulations are part of the EU's broader strategy to incorporate sustainability into its financial policy framework and encourage sustainable investment. Their objective is to enhance transparency and provide stakeholders, such as investors and consumers, with improved information about the sustainability of businesses. Complying with these regulations not only ensures alignment with legal requirements but also contributes to the development of a sustainable, environmentally conscious brand image.
However, there is a shortage of professionals with impact accounting skills*. This is because, while the demand for impact accounting grows, particularly in sectors like impact investing, sustainability, and corporate social responsibility, the education and training of skilled professionals is not caught up with the demand. This led to a talent gap, especially because the growth in demand outpaces the development of educational and training programs to equip professionals with the necessary skills in impact accounting. This proposal aims to solve this problem.
*We use the term "impact accounting" as a general term to refer to any measurements of social and environmental impact. This includes Impact Measurement and Management (IMM), Social Return on Investment (SROI), Environmental, Social, and Governance (ESG) Metrics, the Sustainable Development Goals (SDGs), and others.
Solution
In order to tackle the shortage of skilled professionals in impact accounting, we will create project-based learning materials for impact accounting and issue a completion certificate as a verifiable credential on Atala PRISM.
Why do we need a blockchain verifiable certificate? According to a survey from StandOutCV which surveyed 1,785 Americans, 55% of respondents admitted to lying on their resumes. How can organizations determine the authenticity of resumes? Unfortunately, identifying fraudulent resumes is a challenging task, and hiring a background check agency can be costly.
To tackle this issue, we propose leveraging verifiable credentials (VCs) tied to an Atala DID. This not only enables candidates to securely share their verified certificates but also allows hiring organizations to confirm the authenticity of their credentials swiftly, fostering trust and efficiency in the hiring process.
With this system, companies can hire impact accountants who will report to authorities, such as those required by the Corporate Sustainability Reporting Directive (CSRD), to fulfill their obligations. This allows companies to hire professionals with the necessary skills without the need to spend time and money on background check agencies.
In this proof-of-concept stage, we will do the following:
1 Research:
- Literature Review: Examine existing literature to understand the scope and depth of the impact accounting field.
- Market Analysis: Assess the demand for impact accounting skills and identify existing gaps in the market.
- Competitor Analysis: Evaluate similar offerings by competitors to identify differentiators and opportunities.
- Stakeholder Interviews: Engage with key stakeholders, recording their insights with dates for comprehensive analysis.
- Action Plan Development: Formulate a detailed strategy for the project's implementation based on gathered data.
- Course Content Design Workshop: PBL course content design and creation workshop (2h) conducted by Andamio
- Research Paper: Compile and summarize the findings from the above activities in a well-documented research paper.
2 “Introduction to Impact Accounting” Course Development:
- Curriculum Design: Develop a detailed syllabus covering key topics in impact accounting, such as ESG metrics, sustainability reporting standards, and stakeholder impact analysis.
- Course Content Design Workshop: PBL course content design and creation workshop (2h) conducted by Andamio
- Content Creation: Produce high-quality, engaging course materials, including lectures, case studies, interactive exercises, and assessments.
- Course Management Platform Setup: Upload and set up the course on the Andamio platform.
3 “Introduction to Impact Accounting” Student Onboarding and Analysis:
- Course & Project Management Platform subscription: The Andamio Pro Package (1 year subscription) includes:
- Course management platform
- Project management platform
- Role access
- System administrator access
- Course management access
- 50 Learners
- 50 Contributors
- 5 Course creators
- 5 Course facilitators
- Project management access
- 4 administrators
- 5 deciders
- Hosting
- Technical support
- Marketing and Promotion: Implement targeted marketing strategies to attract potential students, emphasizing the course's relevance and benefits.
- Application and Selection Process: Set up an application process to select a diverse group of students who can benefit most from the course.
- Post-Course Evaluation: Conduct a comprehensive evaluation after course completion to gather insights for improvement.
- Course Content Design Workshop: PBL course content design and creation workshop (2h) conducted by Andamio
4 Curriculum Drafting for Full Certification and Close-out Report/Video:
- Curriculum Design: Develop a detailed syllabus covering key topics in impact accounting, such as ESG metrics, sustainability reporting standards, and stakeholder impact analysis.
- Expert Collaboration: Collaborate with industry experts and academicians to ensure the curriculum aligns with current industry standards and future trends.
- Course Content Design Workshop: PBL course content design and creation workshop (2h) conducted by Andamio
- Action Plan for Content Creation: Formulate a detailed strategy for content creation based on gathered data. Include practical components such as case studies and project work to provide hands-on experience.
- Close-out Report/Video: produce a close-out report and a close-out video.
Impact on the Cardano ecosystem
This initiative has the potential to make a significant global impact and specifically enhance the Cardano ecosystem. By onboarding participants who will create Atala PRISM DIDs, we are introducing new users to the Cardano community. This serves as an entry point, facilitated by Atala PRISM, that encourages these individuals to explore other Cardano offerings and delve deeper into the ecosystem.
Furthermore, this program positions Cardano as a pioneering and socially responsible blockchain ecosystem. It demonstrates Cardano's commitment to utilizing blockchain technology for the betterment of society, attracting and inspiring other "blockchain for good" projects to join and flourish within the Cardano network. This strategic move not only expands Cardano's user base but also strengthens its reputation as a leader in leveraging blockchain for positive social and environmental impact.