“Fluctuat nec mergitur” - Going Concern and Blockchain Technology
Green Funding Platforms (GFP) hosted a seminar on "Creating Sustainability with Blockchain Technology" in Tokyo on the 11th of December 2018. The seminar covered the topic of long term business strategy and developing a sustainable society using Blockchain Technology.
Kouki Takahashi, CEO of In-Think and and advisor at PwC, gave a speech about blockchain trends, sustainability, and the role of cryptocurrencies in the future, followed by a discussion session with GFP's CEO, Renji Hirase.
During the session, Takahashi discussed the relationship between ESG investment and Blockchain, since Blockchain is able to build more transparent governance.
The relationship between ESG Investment and Blockchain
ESG investment refers to incorporating Environmental, Social and Governance factors into investment decisions. ESG investments have drawn attention from institutional investors and are becoming more mainstream, because investors are expecting sustainable profits in the long term. Today, ESG investments account for 25% of all global investments, or USD $25 trillion.
Takahashi stated Governance is a fundamental aspect of ESG investment, because poor governance such as inappropriate accounting or false reporting of income, do not add any value to a business even if they produce environmentally sustainable goods or provide socially friendly services.
Blockchain can avoid fraudulent accounting because of its strength in traceability and inability to be tampered with. Thus transactions using Blockchain assure a transparent flow of funds.
Takahashi said: "Governance transparency is important for listed companies based on International Standards on Auditing (ISA). Transparent Human Resources and Auditing are necessary. Although companies may not feel comfortable with such scrutiny, Blockchain can support them to guarantee transparency. Making the flow of funds more transparent builds greater trust between investors and companies, assuring easier financial arrangements and greater business value."
“Fluctuat nec mergitur” and Going Concern
Moving to the topic on how to overcome the volatility of Cryptocurrency, Takahashi introduced the Latin phrase "Fluctuat nec mergitur", this means "(She) is tossed by the waves but does not sink". The motto has been used since 1358 by the city of Paris.
Looking back at the early days of the internet during the 1990s, Takahashi described a situation where thousands of companies were established and while many failed, those that survived, such as the likes of Amazon and Ebay, eventually made their businesses much larger. Blockchain and Cryptocurrency businesses are being screened out now under the disillusionment period but the survivors will create a new era for the technology.
Having the motto "Fluctuat nec mergitur" is quite important for technologies in their infancy such as Blockchain and Cryptocurrency. Businesses are being tossed around due to volatility, but should not sink. They need to persevere and remain. This will lead them being a going concern, or a long lasting business. This will connect sustainability and ESG Investment.
Green Funding Platforms
Blockchain technology solves problems such as false declaration of documents and eliminates large costs in identifying and preventing them. The technology ensures reliability based on transparency and adds to long term business value and sustainability.
We are developing Green Funding Platforms, the world's first direct investment platform for ESG projects that ensures a transparent flow of funds using blockchain technology. This eliminates the high costs of intermediaries and ensures funds reach their intended targets of environmental and social businesses, contributing the development of ESG Investments.
If you are interested in sustainable business and blockchain technology, please join our telegram group: https://t.me/GFPofficialJA