Sabic and Circularise Partner on Blockchain Pilot to Trace Material Carbon Footprint July 21, 2023 July 21, 2023 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Market NewsJuly 21, 2023 by Kelly Cromley

Sabic and Circularise Partner on Blockchain Pilot to Trace Material Carbon Footprint

Sabic, a leading global chemical industry player, has initiated a collaborative pilot project with blockchain software provider Circularise. The objective is to assess the viability of Circularise’s blockchain technology in tracing the carbon footprint of specific material streams from end to end. By doing so, the companies aim to address the challenges of acquiring essential data for reporting Sabic’s Scope 3 emissions.

The project’s significance lies in the necessity for accurate carbon footprint data, which requires seamless collaboration and data sharing among various value chain partners. Blockchain technology offers the potential to ensure transparency, accountability, and risk mitigation across supply chains.

Blockchain collaboration for sustainable emissions management

The initiative will utilize a consistent methodological and reporting framework, widely accepted by the industry, to capture emissions throughout the value chain. By gathering Scope 1 and Scope 2 data at the material level, the project will generate Scope 3 CO2 emissions for the complete value chain of targeted industries. This approach not only enhances transparency but also minimizes administrative efforts, thanks to Circularise’s Smart Questioning technology. The technology allows verifiers, like brand owners, to request specific information from suppliers without disclosing sensitive data.

Waleed Al-Shalfan, Vice President of Polymers Technology & Innovation at Sabic, emphasized the significance of accurately mapping emissions, particularly Scope 3 emissions. Such mapping facilitates the identification and mitigation of hot spots along the value chain, supporting decarbonization goals. Al-Shalfan also encouraged other partners in the value chain to join the initiative, recognizing the potential of the technology to drive sustainable growth.

This collaboration marks Sabic’s second blockchain application project, following the successful pilot project with Finboot, Plastic Energy, and Intraplás. The previous initiative focused on digital traceability of circular feedstock in customer products. The current project aligns with Sabic’s commitment to becoming carbon neutral by 2050, addressing Scope 1, 2, and 3 emissions accounting challenges, including information accessibility, confidentiality, and data sharing scalability.

Mesbah Sabur, founder of Circularise, shared the company’s vision for the project. Circularise aims to pilot blockchain-powered digital product passports, enabling businesses to track product emissions comprehensively and over time, ultimately generating detailed product lifecycle emission reports.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.