Sun. Aug 14th, 2022

Mercedes Benz is looking to lead the way in terms of CO2 emission transparency by deploying blockchain technology.

Mercedes Benz to Use Blockchain to Boost CO2 Emission Transparency

Famous German luxury car manufacturer, Mercedes Benz is looking to lead the way in terms of CO2 emission transparency by using blockchain technology to promote the process. The company has partnered with British startup Circulor to launch the blockchain pilot.

The two companies will work together to take advantage of blockchain technology to track the carbon emissions of climate-relevant gases. The technology will also be used to determine the amount of secondary material battery cell producers used within their supply chain. With this latest development, Mercedes is aiming to manufacture a carbon-neutral new passenger car fleet within the next two decades.

Markus Schäfer, who is a management board member at Daimler AG and Mercedes-Benz AG, talked about his excitement with this latest development. He stated that Mercedes-Benz will be the first manufacturer to use blockchain technology in orderto map CO2 emissions in the global battery cell supply chain.Schäfer went on to explain that by Mercedes taking this step, they will be laying the foundations to improve their business as well as the environment.

The use of blockchain technology to track CO2 emissions falls under “Ambition2039“, the company’s plan to sustainable mobility. To achieve their objective, Mercedes will require in-depth knowledge of all climate-relevant processes related to the entire vehicle value chain.

The project will begin tracking the use of cobalt, which is used in the supply chain by recycling facilities. Circulor will develop a blockchain-based system that will follow the production flow of the materials, including the associated CO2 emissions.

This project is not meant for quick application. In the long run, Mercedes is planning to achieve a circular economy and aims to reach this by closing the material cycle. Mercedes suppliers and partners will play an integral role in the implementation of the company’s sustainable business strategy, since they account for a large chunk of the value creation. The main objective is to boost CO2 savings and enhance environmental sustainability.

Mercedes Benz will be building on its previous experience with blockchain technology. Last year, the automotive maker approved the development of a blockchain prototype for itssupply chain. The blockchain technology is being used to bring consistency and transparency in the documentation of contracts across all tiers.

Blockchain Continues to Gain Adoption in the Supply Chain Sector

Blockchain technology is universally regarded as one of the technologies that will revolutionize the global economy. It has been gaining widespread adoption in several industries. However, one of the sectors blockchain has become really useful is in the supply chain space.

The technology is beneficial in the documentation of product and contract data. With blockchain technology, companies can link digital data records through cryptography, and it cannot be altered without anyone noticing.

Thanks to blockchain technology, all participants in a supply chain can trace various aspects of production, including the integration, transmission and confirmation of information. These advantages have seen several companies deploy blockchain technologies to help boost the transparency within their production and distribution chain.

IBM’s blockchain is currently used by several companies to boost transparency in their supply chains. The technology has made it easier for them to trace any fault in the production and distribution phases and to quickly address problems if and when they arise.

By Dov Herman

Dov is a Blockchain and Forex trading enthusiast, who spends most of his time trading and examining software who are related to cryptocurrencies and forex trading. You can follow on Dov’s reviews and articles here on TrustedBrokerz and across the web.