Inspiration

Banks and Brands all over the world have Pledged Carbon Neutrality "The industry-led, UN-convened Net-Zero Banking Alliance brings together a global group of banks, currently representing about 40% of global banking assets, which are committed to aligning their lending and investment portfolios with net-zero emissions by 2050." https://www.unepfi.org/net-zero-banking/

The ESG hook would turn CBDC transactions into a way to reach Net-Zero, and support protecting biodiversity and long term carbon removal. "GFANZ now includes over 450 of the world's largest financial institutions with over $130 trillion in assets, all with the joint objective of reducing their emissions to net zero by 2050 and mitigating climate change. As a stipulation of joining GFANZ, members are expected to make and keep commitments to science-based net zero targets across all Scope 1, 2, and 3 emissions by 2050, with an interim target in 2030.... Initiated in April 2021, the Glasgow Financial Alliance for Net Zero (GFANZ), is a voluntary coalition of financial institutions brought together to accelerate the global transition to a net zero economy. Inaugural members of the group include some of the world’s largest banks such as Bank of America, Santander, and Natwest; asset managers such as BlackRock; and asset owners such as The Rockefeller Foundation. These Principal members steer the GFANZ strategy and direction, and track progress toward its goals." https://persefoni.com/newsroom/gfanz

What it does

The ESG hook is designed to take a percentage of a transaction and use it to buy Renewable Energy Credits (REC) from green energy projects and Carbon Removal Credits (CRC) from conservation and tree planting projects. The ESG hook will ensure transactions are not only Net-Zero, but will prove to be be Net-Negative as they remove more CO2 than they create. This solution is designed help banks and reach reach Net-Zero with every transaction. The ESG Hook is designed to address Scope 1, 2, and 3 emissions.

How we built it

The ESG hook is based off the carbon hook https://hooks-builder.xrpl.org/develop/953662b22d065449f8ab6f69bc2afe41 We use 3 hooks to accomplish this task.

  1. The carbonland trust swap hook. This hook receives a sell offer on CRC, Burns CRC, Mints CCR and creates a sell offer for the new CCR to the account that sent the sell offer.
  2. The swap-receiver hook. This hook receives a sell offer on CCR and accepts it if it comes from the trust account.
  3. The esg hook which accumulates a balance and sources CRC (open sell offers) from the trust account.
  • The offers are automatically filled using a broker that we setup.

Accomplishments that we're proud of

Building a hook that can swap an NFT for another NFT. Building a hook that can receive a nft sell offer and accept the offer if conditions are met. Building a hook that can accumulate a balance, source nfts and create buy offers. Building a hook that can accept sell offers from a specific account.

We have sources for RECs and CRC in the pipeline and could actually build and deliver this solution for real.

What's next for ESG hook = Net-Zero + CO2 Removal

Continue to develop idea, code, and partnerships with REC supplier, tree planting organization, and land trust.

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