Dutch blockchain software provider Circularise and Sabic have partnered on a project in which Circularise’s blockchain technology is being used to trace the carbon footprint of specific material streams from end to end.
Sabic, a global leader in the chemicals industry, has launched a pilot project with Circularise, a blockchain software provider, to evaluate the use of its blockchain technology in tracing the carbon footprint of specific material streams from end to end.
The aim is to evaluate whether it offers a solution to the problem of acquiring the data needed to generate and report Sabic’s Scope 3 emissions, the companies said.
Acquiring accurate data on a company’s carbon footprint requires collaboration and data sharing across multiple value chain partners. Using blockchain technology could enable the required transparency and accountability while minimising risk across supply chains.
The present project will capture emissions across the value chain by deploying a consistent methodological and reporting framework accepted by the industry. Scope 1 and Scope 2 data captured at the material level can be used to generate Scope 3 CO2 emissions for the full value chain of targeted industries.
Not only will this enhance transparency, the use of Circularise’s Smart Questioning technology will reduce the administrative efforts associated with the data collection and deliver access to upstream and downstream data provided by value chain participants, from recyclers to converters to original equipment manufacturers, among others. Smart Questioning is Circularise’s proprietary technology designed to allow a verifier, such as a brand owner, to ask a series of carefully curated questions of a prover, for example a supplier, in order to obtain relevant information about a product without disclosing any sensitive data.
“Accurately mapping emissions, especially Scope 3 emissions, will allow Sabic and others to identify and minimise hot spots along the value chain, a critical tool in our pathways to decarbonizsation,” said Waleed Al-Shalfan, vice president of Polymers Technology & Innovation at Sabic. “We encourage other upstream and downstream partners to join and consider how this technology can unlock sustainable growth at every level moving forward.”
This collaboration with Circularise is Sabic’s second blockchain application project. Last year, the company launched a pilot project with Finboot, Plastic Energy, and Intraplás to evaluate the use of blockchain technology in supporting end-to-end digital traceability of circular feedstock in customer products.
This project, aimed at tackling the challenges of Scope 1, 2, and 3 emissions accounting, including issues like information accessibility, confidentiality, and scalability of data sharing among suppliers, will help Sabic meet its commitment of becoming carbon neutral by 2050.
“As part of this project, Circularise aims to pilot blockchain-powered digital product passports and help businesses to track product emissions on a large scale and over time, generating comprehensive product life cycle emission reports,” added the company’s founder, Mesbah Sabur.