Mercedes-Benz to test Blockchain Project to provide Transparency on CO2 Emissions

Luxury Automobile Manufacturer, Mercedes Benz, and blockchain startup Circulor are now rolling out a blockchain pilot aimed at tracing carbon emissions in the cobalt supply chain.

According to the announcement, the project by Circulor and Mercedes comes as a part of the "startup Autobahn" initiative, which is aimed at identifying next-gen automobiles.

It will deploy the blockchain-powered solution to trace the emissions of climate-relevant gases. The solution will also trace the number of recycled materials along with some of the complex supply chains of battery cell manufacturers.

Mercedes intends to use the data collected at the time of this pilot to develop its new carbon-neutral passenger car fleet.

Executive Opinion

Member of the Board of Management of Daimler AG and Mercedes-Benz AG, responsible for Group Research and Mercedes-Benz Cars Development, Procurement and Supplier Quality, Markus Schäfer, said, "With Ambition2039, Mercedes-Benz Cars has set itself high goals. We can only get there in close cooperation with our suppliers. The key is transparency: It is our aspiration to make all processes transparent and traceable. We are the first manufacturer to use blockchain technology to map CO2 emissions in the global battery cell supply chain. In doing so, we are laying the cornerstone for effective improvements – for the environment and for our businesses".

Transparency on CO2 emissions in the cobalt supply chain with Blockchain

The project in the starting will focus on cobalt supplies, which have raised issues related to ethics and provenance. Cobalt is a key mineral for making lithium-ion batteries, with the majority of the cobalt production comes from the Republic of Congo.

The project will help up with the production flows and their associated carbon emissions, as well as record how much-recycled material gets used in the supply chain. Overall the effort will help Mercedes determine whether its partner companies comply with its sustainability requirements, especially when it comes to human rights.
Mercedes is not just the first car manufacturer to turn to blockchain technology on issues of sustainability and ethical product sourcing.

Volvo has also partnered with Circulor to trace raw materials via the supply chain to its battery manufacturer and then to Volvo cars. Tata Motors also revealed its intention to integrate blockchain solutions into its internal processes in 2019.