Trio collaborate on blockchain project for circularity in plastics
DOMO, Covestro and Circularise have announced a new collaborative project for circularity in the plastics industry through the use of blockchain technology.
The newly formed Circularise Plastics project group aims to set up an open standard for sustainability and transparency within this field. At K 2019 (Düsseldorf, 16-23 October), DOMO and Covestro will discuss the project with customers and look for new partners to join them.
Alex Segers, CEO at DOMO: “Registries and tracking systems are key to assessing progress towards global circularity goals. Blockchain can bring transparency where it's most needed, especially when it comes to supply chain traceability in our industry. Achieving a single standard for traceability to origin would enable the industry to responsibilise and communicate regarding sustainability practices and attach proof of origin to materials.”
The partners believe that achieving traceability and transparency in the plastics supply chain enabled by blockchain will make it more authentic and transparent. There are three main objectives:
- Choose Circular: Make it easier for suppliers, processors, manufacturers, moulders and brand owners to choose traceable, sustainable and circular materials.
- Produce Circular: Create incentives for suppliers and manufacturers to produce traceable, sustainable and circular materials and products.
- Make Circular: Provide critical information for reversed logistics and take back of products, materials and components.
Dr. Burkhard Zimmermann, head of strategy, sustainability and digital at Covestro´s polycarbonates segment, said: “For material suppliers & processors, as well as equipment & mouldmakers, Circularise Plastics participation means increased material value and trust in your production, by adding material passports to plastic resin, additives, colorants and any other materials produced.
“For OEMs & brand owners, it helps on the road to achieving sustainability targets and a strengthened brand position, by revealing a product’s origin and transparency on its environmental impact.”
Circularise aims to make transparency and communication in global value chains possible by utilising blockchain and zero-knowledge proof. Its protocol enables trusted data exchange in fragmented supply chains without public disclosure of datasets or supply chain partners. This means that confidentiality and competitive advantage are always maintained.
Mesbah Sabur at Circularise said: “Because all of the verification is done by the system itself, the idea is that users do not need to rely on a central point of control. Instead, trust is transferred from one centralised authority (such as a verifying party) to many decentralised, anonymous participants.”
The Circularise Plastics concept involves a seven-step process whereby the source material can be followed through a blockchain pathway. If ultimately accepted by the original information holder (plastic producer/moulder), the OEM can access information and make statements accordingly.