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LP-2970

ESG Standards Alignment Matrix

Draft

Mapping Lux Network's ESG framework to global reporting standards and frameworks.

Type
Meta
Category
Governance
Created
2025-12-16

LP-2970: ESG Standards Alignment Matrix

Abstract

This LP provides a comprehensive mapping between Lux Network's ESG framework (LP-800) and established global standards including GRI, SASB, TCFD/ISSB, UN SDGs, ISO certifications, and blockchain-specific frameworks. This matrix enables stakeholders, auditors, and partners to understand how Lux's disclosures align with their reporting requirements.

Motivation

Different stakeholders require different reporting frameworks. Without clear standards mapping:

  1. Institutional investors cannot integrate Lux into ESG-mandated portfolios
  2. Auditors cannot efficiently verify compliance
  3. Partners cannot assess alignment with their own frameworks
  4. Regulators cannot confirm compliance with emerging disclosure requirements

This LP serves as the Rosetta Stone between Lux's internal ESG framework and the global standards ecosystem. It reduces friction for all stakeholders who need to understand our sustainability posture in their own terms.

Purpose

External stakeholders require confidence that our ESG claims are:

  1. Measurable: Aligned with recognized metrics
  2. Comparable: Mapped to industry standards
  3. Verifiable: Subject to external audit
  4. Complete: Covering material topics

This matrix serves as the authoritative reference for all ESG compliance mappings.

Climate & Environmental Standards

GRI (Global Reporting Initiative)

GRI StandardGRI DisclosureLux LPStatusEvidence
GRI 302: Energy302-1 Energy consumptionLP-810ReportingQuarterly reports
302-2 Energy outside organizationLP-820PartialValidator network data
302-3 Energy intensityLP-810ReportingPer-transaction metrics
302-4 Reduction of energyLP-810TargetAnnual improvement goals
GRI 305: Emissions305-1 Direct (Scope 1)LP-801ReportingCarbon accounting
305-2 Indirect (Scope 2)LP-801ReportingEnergy provider data
305-3 Other indirect (Scope 3)LP-801PartialValidator estimates
305-4 GHG emissions intensityLP-801ReportingPer-transaction CO2e
305-5 Reduction of GHGLP-801TargetNet-zero roadmap
GRI 306: Waste306-2 Waste by typeLP-810PlannedE-waste tracking

SASB (Sustainability Accounting Standards Board)

Industry: Technology & Communications - Software & IT Services

SASB TopicSASB CodeLux DisclosureLP Reference
Environmental Footprint of HardwareTC-SI-130a.1Total energy consumedLP-810
TC-SI-130a.2% grid electricityLP-810
TC-SI-130a.3% renewable energyLP-810
Data Privacy & SecurityTC-SI-220a.1Privacy incidentsLP-830
TC-SI-220a.5Data breachesLP-830
Systemic Risk ManagementTC-SI-550a.2Business continuityLP-830
TCFD PillarRecommendationLux ResponseLP Reference
GovernanceBoard oversightESG Committee reports to BoardLP-800
Management roleSustainability Lead responsibleLP-800
StrategyClimate risks/opportunitiesDocumented in LP-830LP-830
Scenario analysis2°C and 4°C scenariosLP-830
ResilienceNetwork redundancy, geographic distributionLP-605
Risk ManagementRisk identificationESG Risk MatrixLP-830
Risk managementMitigation strategies definedLP-830
IntegrationPart of LP approval processLP-800
Metrics & TargetsClimate metricsEnergy, emissions, intensityLP-801, LP-810
Scope 1, 2, 3 emissionsFull accountingLP-801
TargetsNet-zero by 2030LP-800

GHG Protocol

ScopeCategoryLux CoverageMethodology
Scope 1Direct emissionsNone (no facilities)N/A
Scope 2Purchased electricityValidator operationsLocation/market-based
Scope 3Category 1: Purchased goodsHardware procurementSpend-based
Category 11: Use of sold productsNetwork usageActivity data
Category 15: InvestmentsTreasury holdingsPCAF methodology

Impact & SDG Alignment

UN Sustainable Development Goals

SDGTargetLux ContributionEvidence
SDG 7: Affordable & Clean Energy7.2 Increase renewable shareValidator renewable requirementsLP-810
7.3 Energy efficiencyPer-transaction optimizationLP-820
SDG 8: Decent Work & Economic Growth8.3 Development-oriented policiesDeveloper grants programLP-800
8.10 Financial services accessDeFi infrastructureLP-60s
SDG 9: Industry, Innovation & Infrastructure9.1 Resilient infrastructureDistributed validator networkLP-605
9.4 Sustainable infrastructureLow-carbon blockchainLP-801
SDG 12: Responsible Consumption12.6 Sustainability reportingESG disclosure frameworkLP-800
SDG 13: Climate Action13.2 Climate measuresCarbon reduction targetsLP-801
SDG 16: Peace, Justice & Strong Institutions16.5 Reduce corruptionTransparent governanceLP-800
16.6 Accountable institutionsDAO governanceLP-800
SDG 17: Partnerships for Goals17.16 Multi-stakeholder partnershipsEcosystem collaborationLP-800

IRIS+ (Impact Measurement)

IRIS+ CategoryMetricLux MetricLP Reference
Financial ServicesOI1120 Client IndividualsUnique addressesLP-800
OI8161 Geographic DistributionCountries servedLP-800
EnergyOI1479 Energy ConsumedkWh per yearLP-810
OI7826 Renewable Energy% of totalLP-810
EnvironmentOI1782 GHG Emissions ReducedtCO2e avoidedLP-801

Technology & Security Standards

SOC 2 Type II Controls

Trust Service CriteriaControlLux ImplementationStatus
SecurityCC6.1 Logical accessRole-based access controlTarget 2025
CC6.6 System boundariesNetwork isolationImplemented
CC6.7 Transmission protectionTLS 1.3, encryptionImplemented
AvailabilityCC7.1 Change managementLP approval processImplemented
CC7.2 System monitoring24/7 monitoringImplemented
Processing IntegrityCC8.1 Input validationSmart contract verificationImplemented
ConfidentialityCC9.1 IdentificationData classificationPlanned

ISO Standards

ISO StandardScopeLux StatusTarget Date
ISO 14001Environmental ManagementPlanned2026
ISO 27001Information SecurityTarget2025
ISO 27701Privacy InformationPlanned2026
ISO 14064GHG VerificationPlanned2026

Blockchain-Specific Frameworks

Crypto Climate Accord

CommitmentRequirementLux Status
Net-zero emissions by 2040Achieve net-zero from electricityCommitted (2030 target)
Develop standardsParticipate in standard developmentActive
100% renewable by 2030Validator renewable requirementsOn track

Crypto Carbon Ratings Institute (CCRI)

MetricCCRI DefinitionLux Reporting
Network power consumptionTotal validator electricityLP-810
Transaction energykWh per transactionLP-820
Carbon intensitygCO2e per transactionLP-801
Renewable energy share% from renewable sourcesLP-810

Bitcoin Mining Council Methodology

While Lux uses proof-of-stake (not mining), we adapt relevant metrics:

BMC MetricLux EquivalentReporting
Sustainable electricity mixValidator renewable %Quarterly
Efficiency (hash rate)TPS per kWhQuarterly
Energy consumptionTotal network kWhQuarterly

Governance Standards

OECD Principles of Corporate Governance

OECD PrincipleLux ImplementationLP Reference
Shareholder rightsToken holder voting rightsLP-800
Equitable treatmentOne-token-one-voteLP-800
Stakeholder roleCommunity participationLP-800
Disclosure & transparencyPublic reportingLP-840
Board responsibilitiesESG Committee oversightLP-800

DAO Governance Standards

FrameworkElementLux Implementation
SnapshotOff-chain votingImplemented
Compound GovernorOn-chain executionPlanned
Optimistic governanceTimelock + vetoImplemented

Compliance Matrix Summary

Full Alignment

StandardCoverageVerification
GRI 302 (Energy)CompleteAnnual report
GRI 305 (Emissions)CompleteCarbon audit
TCFD GovernanceCompleteBoard minutes
TCFD Risk ManagementCompleteRisk register
UN SDG 9, 13, 16Primary focusImpact report

Partial Alignment (Work in Progress)

StandardGapTimeline
SASB TC-SI (full)Data privacy metricsQ2 2025
GRI 306 (Waste)E-waste trackingQ3 2025
ISO 27001Certification process2025
SOC 2 Type IIAudit engagement2025

Planned Alignment

StandardDependencyTarget
ISO 14001Environmental management system2026
ISO 14064GHG verification2026
ISSB S2Full climate disclosure2026

Using This Matrix

For Investors

Reference specific LP numbers for due diligence on any ESG topic.

For Auditors

Use the evidence column to locate supporting documentation.

For Partners

Map your reporting requirements to Lux disclosures for integration.

For Regulators

This matrix demonstrates alignment with emerging ESG regulations.

  • LP-800: ESG Principles and Commitments (parent document)
  • LP-801: Carbon Accounting Methodology
  • LP-810: Green Compute & Energy Procurement
  • LP-820: Network Energy Transparency
  • LP-830: ESG Risk Management
  • LP-840: Impact Disclosure & Anti-Greenwashing Policy
  • LP-860: Evidence Locker Index

Changelog

VersionDateChanges
1.02025-12-16Initial draft

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