TraceCarbon is a blockchain enterprise network that enables compliance and transparency through the traceability it provides for the CO2e ecosystem, including corporate reporting, project effectiveness and product lifecycle analysis.

In response to shifting consumer preferences and expanding environmental legislation, many large companies like Amazon, BP and Delta are making strong commitments and taking the necessary steps to reduce their carbon emissions.

Companies have been tracking their Carbon Footprint for a number of years yet they do not have confidence in the numbers and the process they currently use is extremely time consuming. The means of tracking carbon outputs have so far been lackluster at best. This is due to numerous factors that complicate the measurement and tracking process, including:

• the multitude of data sources that exist throughout the supply chain
• the regulations and emissions standards that vary, in some cases drastically, from one region to the next
• the diversity of formulas, calculations and models to measure carbon emission

For a global company trying to meet standards and accurately track and attribute emissions for their operations around the world, this is nearly impossible to do efficiently with current tracking methods.

The main method organizations currently use to measure and track emissions, which involves manual data entry into spreadsheets, can produce inaccurate and difficult to prove results. This forces companies to overestimate their emissions numbers to avoid regulatory penalties.

This means we do not currently have an accurate measure of carbon levels being released into the atmosphere, which is troubling. It’s impossible to know if the world is on track to cut emissions by the level scientists have indicated is needed, and that were agreed to in treaties like The Paris Agreement, if we can’t fully trust the data that companies are reporting.

A new method of tracking is needed – the status quo is no longer good enough. This will require companies to embrace a new set of technology tools that are already reshaping many other industries. Through a combination of connected IoT, digital twins and blockchain, a more accurate and efficient tracking process can emerge.

The current method many companies employ when tracking their carbon outputs is quite simple in design – inputting emissions data into spreadsheets where the data can be tracked. These spreadsheets are compiled at operational points all over the world and sent to the office of the CFO to be parsed, sorted and then reported to the various regulatory bodies. This is not an easy task, since if any errors, even accidental, are caught upon audit, the company will face fines.

The fact is, at many companies the CFO can’t fully trust the emissions numbers that are reported to them – not because they lack faith in the team doing the collecting, but because there is no way to guarantee that the numbers have been accurately recorded at each step of the process. Most organizations have vast operational networks, spanning continents with hundreds or even thousands of employees involved in the emissions tracking process at one point or another. It’s simply not feasible to trust that everything was tracked with 100 percent accuracy; any errors pose far too big a risk.

Rather than risking fines if the numbers turn out to be inaccurate upon audit, many companies are forced to systematically overestimate their carbon emissions. Companies miss out on remediation credits they are entitled to claim, and also distorts the carbon output data that governments and scientists worldwide are using to make policy recommendations and decisions.

Companies need a reliable place to record the emissions data that will be accurate and easily referenced in case of audit. Blockchain fits the bill. It’s an immutable ledger – meaning that the data inputted from IoT sensors and digital twins can be trusted as fully unaltered, giving the CFO proof that data shared with them is factual and accurate. A blockchain platform also allows for attestations to be associated with the data readings. Examples are a pdf of a calibration certificate, a spreadsheet showing the detailed calculations, etc.

Using a blockchain also allows companies to navigate the regulatory mess that comes with operating in numerous jurisdictions around the world, as the time and location data can be embedded right alongside the emissions data, tying it together in an accurate and reliable way that would stand up during an audit.

This single source of truth for all company data lets the CFO report with confidence and ultimately claim more of the credits the organization is entitled to. Blockchain also provides the means to take the next-gen towards efficiency by tokenizing the ecological savings that can then prove regulatory compliance.

While embracing these new technologies within a company will certainly save time and reduce risks for any company that adopts them, we can also make a dent in the larger issue – an accurate picture of global carbon emissions – by adopting industry standards at a wider scale.

TraceCarbon is now open to new members, and we’re already seeing high levels of interest from companies across the value chain.

Companies are encouraged to join today and see the benefits of TraceCarbon traceability.

Any business or partner that wants to be part of the industry’s transformation is also welcome.

Sign up below to stay in the loop with the latest information – including new resources, events and promotions – or request a meeting with our Director of Business Development – John Chappell, chappell@blockapps.net