Trafigura to track carbon emissions at its nickel and cobalt supply chains via blockchain
(Kitco News) - Trafigura, one of the world's largest physical commodity trading companies, announced Thursday that it has signed a Master Services Agreement with Circulor to provide traceability and CO2 tracking for Trafigura's nickel and cobalt trading division.
Circulor is the leading provider of supply chain provenance and emissions tracking services. It does this by providing an enterprise software platform, which creates a reliable chain of custody of materials and attaches sustainability and other ESG data to that flow of materials.
The company said that under the agreement, Trafigura and Circulor will develop an innovative programme to track dynamically and attribute CO2 emissions throughout Trafigura's nickel and cobalt supply chains for customers, in particular electric vehicle manufacturers.
Separately, Trafigura and Circulor are working together to support Trafigura's responsible sourcing and traceability programme.
The objective for both projects is to work with a range of upstream producers and downstream receivers progressively to integrate and communicate responsible sourcing due diligence and CO2 tracking data into their respective value chains via Circulor's proven Blockchain traceability platform, the company added.
Executive Chairman and CEO Jeremy Weir said, "Circulor's offering is tried-and-tested and their expertise and market reach are internationally respected. Today's agreement is an important next step in improving transparency in commodity markets and will enable us to offer our customers responsibly-sourced commodities, with a clearly-defined carbon specification."
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. Trafigura sources, stores, transports and delivers a range of raw materials (including oil and refined products and metals and minerals) to clients around the world and has recently established a power and renewables trading division.