Six key characteristics define ideal blockchain for ESG claims s Description Relevance for ESG ain • How robust is it against attacks? ch • What would be required to manipulate or corrupt it Secure • Do smart contracts have any major vulnerabilities? Security a “must have” part of value proposition ock bl all Flexible • Can it run complex business logic, such as smart Must meet expectations for use cases (similar to assets, chain programs and conditional transfers? across all blockchain applications) Key • How accessible is it? Access for all contributors to verify claims; ability of • Can new parties join and participate fully or is it Transparent parties to join and prove claims or view others’ ain centrally controlled? claims ch ock Affordable & • Can it verifiably track digital assets in detail at a price Ability to track individual asset vs. balance bl Traceable commensurate to the value created by doing so? • E.g., 3 quarters, 2 dimes and 1 nickel vs. $1 SG balance E • Can the blockchain be run only by powerful computer for Lightweight nodes or can it be run on a smartphone? Ability to use on lightweight device critical to proving & Scalable • How many transactions per second (tps) can it claims at provenance (e.g., in field, at plant, at mine) process? Specific Energy Ensure it does not counter positive ESG efforts (e.g. Efficient • What is energy requirement of blockchain? energy intensive proof of work consensus mechanisms)