SABIC Launches Pilot Blockchain Project
SABIC has launched a pilot project with Circularise to evaluate the use of their technology in tracing the carbon footprint of specific material streams from end to end.
Generating and reporting Scope 3 emissions is notably complex and confronted by challenges with availability of reliable data. Accurate data on a company’s carbon footprint requires collaboration and data sharing across multiple value chain partners. Blockchain technology has emerged as a potentially efficient solution to improve the process that can bolster transparency and accountability while minimizing risk across supply chains.
SABIC’s project will employ Circularise’s technology to 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. In addition to increased transparency, the use of Circularise’s Smart Questioning technology is said to benefit SABIC’s entire value chain by reducing the administrative efforts associated with the data collection and providing access to upstream and downstream data provided by value chain participants, from recyclers to converters to original equipment manufacturers, among others.
Waleed Al-Shalfan, Vice President of Polymers Technology & Innovation at SABIC said, “This blockchain pilot project reaffirms SABIC’s dedication to accelerating the sustainable transformation of our industry through strategic partnerships and innovative new technologies. Accurately mapping emissions, especially Scope 3 emissions, will allow SABIC and others to identify and minimize hot spots along the value chain, a critical tool in our pathways to decarbonization. We encourage other upstream and downstream partners to join and consider how this technology can unlock sustainable growth at every level moving forward.”
Mesbah Sabur, Founder of Circularise said, “We’re proud to collaborate with SABIC in tackling the pivotal challenges of Scope 1, 2, and 3 emissions accounting, which encompass issues like information accessibility, confidentiality, and scalability of data sharing among suppliers. 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.”
