The organisation released a unique proof of concept to trace emissions and build responsible sourcing and sustainability practices in the metals and mining industry using blockchain
The World Economic Forum’s (WEF) Mining and Metals Blockchain Initiative (MMBI) announced the release of a proof of concept to trace carbon emissions across the value chain for mining and metal firms using blockchain and distributed ledger technology through a press release yesterday.
The blockchain-based greenhouse gas emissions tracking project is aimed at testing the technical feasibility of the idea in accelerating an industry solution for supply chain visibility.
The initiative is a collaborative effort between the WEF, several industry experts including Dutch crypto startup Kryha and Susan Joseph, a consortium advisor at the MMBI and the seven founding members of the MMBI – Anglo American, Antofagasta Minerals, Eurasian Resources Group, Glencore, Klöckner & Co, Minsur and Tata Steel.
The project, initially announced in October 2019, is designed to build responsible sourcing and sustainability practices using blockchain along with acting as a solution for the metal and mining industry’s environmental, social and governance (ESG) requirements.
The announcement further introduced a new carbon tracing platform called the COT which was being developed for over a year. Powered by distributed ledger technology (DLT), COT will play a critical role in ensuring end-to-end trackability of emissions from the mines to the final product, the press release explained.
Further, COT is expected to be instrumental in exploring the complexities of the supply chain dynamics and will contribute to setting future requirements for data utilisation. The proof of concept also responds to stakeholders’ demands on developing and ensuring “mine to market” visibility and accountability.
“There is an increasing demand for metals and minerals, and an increasing demand for sustainable and responsible and traceable supply chains”, said Jörgen Sandström, Head of Mining and Metals Industry, World Economic Forum.
Further explaining the idea behind the project, he stated that “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”.
The successful completion of the proof of concept marks a significant milestone in the development of the platform and lays the foundation for the next phase of the development and reinforces comprehensive feedback sessions with stakeholders.
“The distributed nature of blockchain technology enables cross-enterprise collaboration and makes it the ultimate networked technology”, said Nadia Hewett, Blockchain Project Lead, World Economic Forum. “This opens exciting new possibilities that organisations otherwise would not have the capability to deliver on their own”, she added.