Mercedes-Benz, the popular carmaker is teaming up with Circulor on a project to trace CO2 emissions in the cobalt supply chain. The carmaker has an ambitious plan dubbed ‘Ambition2039’ to produce a carbon-neutral car fleet.

Circulor is based in the UK and it is currently working on a blockchain project to track and trace products within supply chains. This is not the first time they are teaming up with a carmaker. The company has been working with Volvo Cars to trace recycled cobalt in its newly manufactured vehicles. Cobalt is an essential mineral in the manufacture of batteries used in electric vehicles. In December 2019, Chrysler announced it would participate in a blockchain project to track the origin of its cobalt.

Cobalt Supply Chain 

The first focus of the project will be cobalt, which comes into the Daimler-Benz supply chain from recycling facilities. Using the blockchain, they will map the production flow of materials and CO2 emissions. This mapping will also record the recycled materials in the supply chain while displaying whether Daimler is meeting its sustainability goals when it comes to safety, environment protection, business ethics, human rights, and business ethics. With this project, Mercedes-Benz is bringing transparency in its supply chains for its consumers. To make the goal of carbon-neutral cars a reality, the company will work with an unnamed supplier of batteries.

The company is calling on its direct suppliers to comply with the standards established under Ambition2039. Besides that, it expects them to carry out provisions upstream and to monitor compliance. In the end, Mercedes hopes to create a circular economy with zero emissions. According to a board member at Daimler AG, the company will only be able to achieve its lofty goals by working closely with its suppliers.

As part of its effort to reduce emissions, the company is also holding workshops for its suppliers. During these workshops, they can identify effective ways to reduce CO2 emissions. Initially, the focus will be on materials that are CO2 intensive in the production process. Besides batteries, this includes steel and aluminum the company heavily relies on.

This project is part of STARTUP AUTOBAHN, which was founded in 2016 by Daimler AG. Thus far, the program has worked with 28 international and national companies to identify future mobility solutions. The platform has a huge focus on sustainability using innovative technology.

Use of Blockchain in Supply Chain

The blockchain is helping to bring an unprecedented level of transparency and traceability into supply chains. Various major companies, including IBM, are currently working on various solutions to aid with this traceability. At the same time, companies can benefit from reduced costs and faster transaction times.

Without the blockchain, the level of traceability that Mercedes Benz is hoping to achieve would simply be impossible. In the future, it is realistic to predict that most of the major supply chains in the world will be powered by blockchain technology.

Image Source: Pixabay 

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