Blockchain for Sustainability in Automotive Industry

Sustainability Issues in Automotive Industry That Blockchain is Addressing

  • Tracing Battery Supply Chain
    • Develop and manage digital passports of battery that will trace its embedded CO2 emissions, compliance to ethical production standards and levels of recycled content.
    • Prepare battery supply chain to comply with upcoming battery regulation in the EU.
    • Having complete traceability in the supply chain will force the mining companies toward sustainable mining of materials such as Nickel.
  • Tracing Automotive Supply Chains
    • Creating a digital twin of the raw material on the blockchain network.
    • OEM can track step-by-step movement of products in the supply chain and get real-time access to information such as GHG emissions from leather and plastic product products.
    • It will also allow the OEM to verify the sustainability claims made by any supplier and make validated sustainability themselves to avoid greenwashing.
  • Tracing Scope 3 emissions of Automotive Supply Chains
    • Create a framework to allow automotive suppliers to report their emissions in a simplified and uniform format.
    • This will allow OEMs to develop better understanding of the Scope 3 emissions in their supply chains and device strategies to curtail them.
    • Blockchain can also track information about authenticity of the spare part, provenance, and quality of products, giving early warning signals about any supply chain disruption.
  • Broaden EV Adoption
    • Encourage citizens to use EV vehicles, decreasing vehicular GHG emissions.
    • Reward vehicle operators with carbon credits based on their vehicles’ driving performance and carbon reduction, reducing the global carbon footprint.
    • Increase liquidity of carbon trading markets.
  • EV Charging Using Clean Energy
    • Enable corporate EV fleet operators/ owners to show proof of renewable energy purchases and enable tracking of granular energy usage for carbon accounting.
    • Reduce dependence on electricity grids and increase proportion of renewable energy in energy mix.
    • Users will be able to select a greener electricity supplier.
    • Electricity suppliers will have visibility into demand from the consumer.
  • Tracing Recycled Material in Supply Chain
    • Increase circularity in automotive supply chains by increasing use of verified recycled materials.
    • Companies can verify ESG claims of suppliers on blockchain.
  • Battery Recycling
    • Enable recycling of EV batteries.
    • Track and trace recyclable materials in EV battery supply chains and claim associated CO2 savings.
    • Gain visibility on out-of-warranty batteries.
    • Initiate and Validate end-of-life recycling of batteries.


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