Singapore’s NUS Teams With Northern Trust, UOB for Blockchain-Based ESG Transparency

The National University of Singapore (NUS), in collaboration with Northern Trust and UOB, has introduced a first-in-market initiative to tokenize green bond reporting, according to a statement on Monday.

This project leverages blockchain technology to enhance transparency and accountability in environmental, social, and governance (ESG) reporting, marking a significant milestone in the evolution of green finance.

The initiative centers around Northern Trust’s digital assets platform, Matrix Zenith, which will be used to mint and hold a green bond reporting token. The token will securely encapsulate the environmental impact data from NUS’ third green bond, issued in 2023.

Investors, often requiring accurate and immutable data for their sustainability reporting and ESG goals, stand to benefit significantly. The tokenisation ensures that the bond’s environmental impact data remains reliable and unaltered, even as the bond is traded. UOB, the lead arranger for NUS’ green bond issuance, will play a key role in refining the usability of tokenised data for sustainability reporting practices, the announcement said.

The initiative is part of Project Guardian, a global program led by the Monetary Authority of Singapore (MAS) to explore the benefits of asset tokenisation. Falling under the fixed income workstream of the project, the NUS green bond reporting token aims to set new benchmarks for transparency and compliance in green finance.

"By creating a token that enhances the integrity and transparency of our environmental data, we aim to provide greater confidence to investors, helping them meet their sustainability reporting goals," said Tan Kian Woo, senior vice president and chief finance officer at NUS. “This is only the beginning, as we continue to push boundaries in sustainable financial practices.”

The collaboration is set to extend further through a three-year Memorandum of Understanding (MoU) between NUS and Northern Trust, signed in November 2024. This partnership will foster cutting-edge research in ESG finance and explore new applications for blockchain technology in sustainable financial practices.