THE HAGUE, Netherlands, 26 July 2023 - Circularise, a digital product passports software provider that drives traceability and sustainability in supply chains, has announced a pilot project in collaboration with SABIC and its partners. The initiative aims to validate the application of blockchain to map Scope 3 emissions and calculate CO2 impacts throughout the value chain.
Generating and reporting Scope 3 emissions is notably complex and often hindered by the lack of availability of reliable data. Companies frequently don’t have visibility beyond their tier-1 suppliers, and 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.
In this project, SABIC will employ Circularise’s digital product passport to capture Scope 1 and Scope 2 data at the material level. This information will then be used to track Scope 3 CO2 emissions for the full value chain of targeted industries. By using Circularise's digital product passports, SABIC will not only boost traceability but also simplify its data collection process. These efforts will bring significant benefits to everyone from recyclers and converters to original equipment manufacturers as it reduces the administrative efforts associated with the data collection, increases transparency, and provides partners access to the respective upstream and downstream data with the highest level of privacy and confidentiality.
“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,” said Mesbah Sabur, Founder of Circularise. “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."
“This blockchain pilot project reaffirms SABIC’s dedication to accelerating the sustainable transformation of our industry through strategic partnerships and innovative new technologies,” said Waleed Al-Shalfan, Vice President of Polymers Technology & Innovation at SABIC. “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.”
Alongside its digital product passports, Circularise has recently introduced MassBalancer. This ISCC PLUS mass balance bookkeeping automation software streamlines the process by eliminating the need for complex spreadsheet matrices. This supports Circularise’s strategy to build a comprehensive suite of services to provide a complete traceability software solution for businesses.