WEF Launches Blockchain Proof of Concept to Track Supply Chain Greenhouse Gas Emissions
The World Economic Forum’s Mining and Metals Blockchain Initiative has launched a unique proof of concept to track emissions across the value chain using distributed ledger technology. The proof of concept will be pivotal in the technical feasibility of the project.
Accelerating supply chain visibility
By collaborating with seven global companies in the blockchain-enabled proof of concept initiative, the World Economic Forum (WEF) intends to boost industrial solutions for ESG requirements and supply chain visibility.
According to the announcement:
“The successful completion of the proof of concept, named the COT, a Carbon Tracing Platform, will be critical in helping to ensure traceability of emissions from mine to the final product. With a focus on end-to-end traceability, the COT platform uses distributed ledger technology to track CO2 emissions.”
The conception of this project started in October 2019 after founding members, such as Tata Steel, Anglo American, and Eurasian Resources Group joined forces in designing and exploring blockchain solutions needed in accelerating responsible sourcing in the mining sector.
Addressing supply chain complexities
The WEF acknowledged that the blockchain project not only tested the technological feasibility of the solutions but also explored the complexities of the supply chain dynamics. As a result, the proof of concept will be instrumental in responding to stakeholders’ demands to generate “mine to market” accountability and visibility.
Jörgen Sandström, the head of WEF’s mining and metals industry, noted:
“There is an increasing demand for metals and minerals, and an increasing demand for sustainable and responsible and traceable supply chains.”
“There is a potential to create a full value chain view with downstream visibility, and in partnering with regulators and aligning our work with robust ESG standards, sustainability certification schemes, and assurance frameworks.”
In October, The WEF released blockchain standards dubbed the Global Standards Mapping Initiative (GSMI) gathered from 185 jurisdictions, 30 technical standard-setting entities, and almost 400 industry groups aimed at being a resource to thrust the blockchain sector forward.
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World Economic Forum Releases GSMI Global Blockchain Standards