How blockchain is helping mining companies reduce carbon emissions

Corporate leaders from the mining, metals and manufacturing industries are changing their approach to integrating climate considerations into complex supply chains.

From cars to clothes, furniture to food, concerned customers now insist on understanding the environmental impact of the products they buy. A 2020 study conducted by The Conference Board showed 81% of consumers globally feel strongly that companies should do more to preserve the environment.

But how can corporations within the mining and metals industry rise to the challenge and accurately disclose sustainability within production methods and supply chains?

The Forum’s Mining and Metals Blockchain Initiative (MMBI), created to accelerate an industry solution for supply chain visibility and environmental, social and corporate governance (ESG) requirements, released a unique proof of concept to trace emissions across the value chain using blockchain technology. The proof of concept, named the COT, a Carbon Tracing Platform, helps ensure traceability of emissions from mine to the final product. With a focus on end-to-end traceability, the COT platform uses blockchain technology to track CO2 emissions.

Extreme weather events, including hurricanes and floods, might be the most illustrative examples of the effects of climate change. But we also know that rainfall patterns and sea levels are changing and that glaciers are in retreat.

The urgent need to address the climate emergency means businesses must work with governments and other stakeholders to accelerate the transition to new approaches that are in line with the 2018 recommendations of the Intergovernmental Panel on Climate Change (IPCC) of a 1.5°C degree scenario.

Climate change is creating risks and opportunities for business. Investors, regulators and other stakeholders are challenging companies across all industries, including the mining and metals sector, to take responsibility by adopting an integrated, strategic approach to addressing the climate emergency.

Rising demand for minerals and materials also brings increasing pressure from stakeholders and shareholders for transparent records of the sustainability and traceability of the raw products.

The MMBI, a collaboration between seven leading industry players, was launched in 2019.

The founding members of the MMBI – the World Economic Forum, Anglo American, Antofagasta Minerals, Eurasian Resources Group, Glencore, Klöckner & Co, Minsur and Tata Steel – released a proof of concept that uses blockchain to track embedded greenhouse gas emissions.

Developed in collaboration with industry experts, and supported by the Dutch blockchain champion Kryha and Consortium Advisor Susan Joseph, it not only tests the technological feasibility of the solution, but also explores the complexities of the supply chain dynamics and sets requirements for future data utilization.

In doing so, the proof of concept responds to demands from stakeholders to create “mine-to-market” visibility and accountability.

By pooling resources and costs, the mining and metals companies aim to accelerate supply chain visibility which also discloses ESG requirements.

The Forum’s Mining and Metals community is a high-level group of peers dedicated to ensuring the long-term sustainability of their industry and society. Companies are invited to join the Centre for Energy and Materials to share their expertise, participate in projects, and help halt climate change for a more equitable world.

Read more about the community’s top three industry priorities.