3.4 – IMPACT Engine

The IMPACT Engine is another module in the TRRUE Govern Framework. It offers a range of features for the collection and recording of ESG-related metrics. Users will be able to generate Verified or Unverified Metrics to be published on-chain.

Unverified Metrics do not require additional validation upon declaration. They have the potential to transition into Verified Metrics if such verification becomes necessary. Typically, Unverified Metrics are employed to pre-state a specific intention.

Verified Metrics on the other hand, undergo a validation process. The outcomes are disseminated using a multi-signature method, wherein both the User making the claim, and the responsible VC Issuer verifying it, use TRRUE SSI to sign off for the Metric’s publication.

Verification processes can be automated or manual. Automation will involve artificial intelligence (AI) tools in future, documenting an accuracy score for machine learning as is common practice in AI models. Governance protocols can also stipulate a minimum accuracy score for Metrics validated through AI.

This meticulous approach adopted by TRRUE will help to ensure precision and reliability in the IMPACT Engine verification procedures.

Such procedures will be developed and integrated for a wide range of Metrics. Together they shall map out a comprehensive infrastructure for ESG records and audits that can be used by corporations, ESG ratings providers and other service providers.

Any modern business will benefit from the IMPACT Engine.

Fig 9. Broad Coverage of ESG Metrics

Fig 9. Broad Coverage of ESG Metrics

Such procedures will be developed and integrated for a wide range of Metrics. Together they shall map out a comprehensive infrastructure for ESG records and audits that can be used by corporations, ESG ratings providers and other service providers.

Any modern business will benefit from the IMPACT Engine and risk analysis of the Metrics, calculating a percentage (%) confidence scores based on the reliability of the data source, the type of Metric, and other factors.

Note that draft EU legislation has recently been published which proposes regulating ESG rating providers conducting business in the EU. The proposal includes ESG ratings providers requiring authorisation by the European markets regulator (ESMA), as well as various rules applying to conduct of business. As of the date of this White Paper the proposed EU Regulation is a draft. As required, TRRUE will comply with regulatory requirements and, in addition, believes that compliance could operate as a market differentiator.