Sabic, a global chemicals industry leader, has teamed up with Dutch blockchain software provider Circularise to launch a pilot project aimed at enhancing emissions accounting's transparency and efficiency. The project involves the use of Circularise’s blockchain technology to trace the end-to-end carbon footprint of specific material streams.
The collaboration aims to determine if Circularise's blockchain technology can help solve the challenge of obtaining the necessary data to calculate and report Sabic’s Scope 3 emissions. It is essential to acquire accurate data on a company’s carbon footprint, which requires cooperation and data sharing across various value chain partners. By utilizing blockchain technology, companies can ensure transparency and accountability while minimizing risk across supply chains.
The project will record emissions across the value chain using a consistent methodological and reporting framework acknowledged by the industry. The collected Scope 1 and Scope 2 data at the material level can then be used to calculate Scope 3 CO2 emissions for the complete value chain of targeted industries.
Circularise’s proprietary Smart Questioning technology will help reduce the administrative efforts associated with data collection and allow access to upstream and downstream data provided by value chain participants.
“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 decarbonization,” said Waleed Al-Shalfan, vice president of Polymers Technology & Innovation at Sabic.
This collaboration with Circularise marks Sabic’s second venture into the application of blockchain technology. Sabic remains committed to achieving its goal of becoming carbon neutral by 2050, and the pilot project seeks to address the challenges of Scope 1, 2, and 3 emissions accounting.
Circularise's founder, Mesbah Sabur, stated that as part of this project, the company 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.”
