- The Carbon Neutrality Rating System serves to be a vital tool for enterprises to assess their carbon output, contribution to emission reduction and green action
- Partnership will bring rigorous standardisation to enterprise measurement, reporting of carbon emissions and carbon neutrality branding
- System will pave the way for the integration of high-integrity carbon credits, invigorating carbon markets across Asia
SINGAPORE & HONG KONG, NOVEMBER 28th, 2022 — TÜV SÜD, a global solutions provider for independent sustainability assessment and certification, announced its strategic partnership with MVGX through its Asia Carbon Neutrality Assessment Center (“ACNAC”), to establish a holistic carbon neutrality ranking system for enterprises to comprehensively understand their risk and carbon neutrality operation levels. ACNAC is a subsidiary of MVGX Holdings, the parent company of MVGX, a digital green exchange licensed and regulated by the Monetary Authority of Singapore (“MAS”). ACNAC is primarily focused on the enterprise assessment of carbon assets, carbon footprint, and carbon neutrality ratings.
Together, TÜV SÜD and ACNAC launched the Carbon Neutrality Rating System, a customized methodology to evaluate the level of carbon neutrality of organizations. The evaluation system measures enterprises’ performance in social contribution, carbon neutrality operations management level, carbon neutrality commitment and disclosure, and green supply chain and green investments within the context of carbon neutrality. All in all, this data is essential to keeping organizations accountable and informing them of where they are in their sustainability journeys, enabling them to effectively track, measure, and monitor the quality of their efforts.
This assessment methodology quantifies the carbon output and emission reduction contribution of the enterprise, focuses on tracking and recording a number of carbon neutral operation metrics of the enterprise, so as to assess and score the enterprise in a more fair, transparent and professional manner from different dimensions. The assessment report and rating need to be verified by the authoritative third-party TÜV SÜD prior to release to ensure the authenticity and reliability of the data, thereby enhancing the credibility of the assessment.
Celebrating the launch of the rating system, Bo Bai, Executive Chairman and Co-Founder of MVGX, said: “Businesses want to commit to more sustainable action but lack the tools to effectively ensure that their efforts pay off. Seeing this gap, we’ve looked to promising new technologies such as blockchain to accelerate green action in Southeast Asia and beyond. As a trusted industry pioneer within the sustainability space, we are thrilled to be partnering with TÜV SÜD to bring greater integrity to enterprise-grade sustainability tracking and rating solutions, making it more accessible for companies of all sizes to understand where they are in greening their operations and what more they can do.”
This partnership is especially timely given that Singapore recently joined the Article 6 Implementation Partnership as a member country at COP27 to encourage international opportunities for collaboration in and advancing high integrity carbon markets. Similar to how countries are expected to contribute to the development of baseline frameworks and methodologies for carbon markets on both a domestic and international level, the creation of the Carbon Neutrality Rating System will play an important role in ensuring greater standardization and measurement at a smaller scale, specifically aimed at businesses and corporations.
The Carbon Neutrality Rating System operates according to the following process:
- ACNAC, through its carbon software system, will issue a questionnaire to the company which will then need to be completed and supported with additional documentation and self-reported data.
ACNAC and TÜV SÜD will then review and rank the company’s carbon operations performance in line with the evaluation methodology developed by TÜV SÜD. As the technological infrastructure provider and together its technical partner Beijing Zeepson Technology, ACNAC powers the underlying technological infrastructure that is used to accurately verify and authenticate the data attesting to a company’s carbon standing.
- From the calculations, TÜV SÜD then ranks the company’s carbon neutrality operations and assigns a final score mapped to a tiering system of Diamond, Platinum, Gold, Silver, and Bronze, relative to other participating organisations and partners.
Speaking on the partnership, Xu Hailiang, Vice President of TÜV SÜD Smart Energy in Greater China, said: “While leaders have sounded the alarm that we are nearing the tipping point of global warming, there is still opportunity for recovery. Making tangible change starts with having a clear understanding on where firms stand and what more they can do to combat climate change. We hope that companies that actively contribute to carbon neutrality and set an example for others can receive higher honors and recognition. As such, we are thrilled to partner with innovative changemakers such as MVGX who are at the frontier of climate action in Asia and beyond.”
ACNAC parent company MVGX is a Singapore-based leading fintech company that provides end-to-end Carbon-as-a-Service (“CaaS”) solutions, backed by its licensed digital asset exchange platform and patent-pending technologies including its Non-Fungible Digital Twin (“NFDT®”) and Carbon Neutrality Tokens (“CNT®”). Backed by blockchain technology, MVGX provides businesses with a transparent, tamper-proof record of the performance of all green projects tied to the credits listed on its exchange infrastructure. MVGX provides a holistic offering to strengthen opportunities for businesses to achieve carbon neutrality in a verified, compliant way.
Founded in 1866, TÜV SÜD was established in Munich, Germany with a bold vision to reduce the impact of technological risks and protect people, assets and the environment. More than 150 years on, TÜV SÜD continues to partner with innovative businesses providing internationally-accredited independent product testing services in accordance with international standards, and quality auditing and system certification for all industries.
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