SABIC and Circularise launch pilot blockchain project for emission tracking

SABIC has partnered with blockchain software provider Circularise to launch a pilot project to evaluate the use of the latter’s technology in tracing the carbon footprint of specific material streams from end to end.

Generating and reporting Scope 3 emissions is complex and requires collaboration and data sharing across the value chain. Emerging blockchain technology has the potential to bolster transparency and accountability of the process.

As part of the 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.

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.

The scope of the pilot blockchain project of SABIC and Circularise.

Efficient data collection and hot spots identification

In addition to increased transparency, SABIC expects the use of Circularise’s Smart Questioning technology will benefit its 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.

“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,” said Waleed Al-Shalfan, Vice President of Polymers Technology & Innovation at SABIC.

This collaboration with Circularise also marks SABIC’s second blockchain application project. Last year, SABIC 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.