Mercedes-Benz, a division of Daimler, is conducting a pilot project that will use blockchain to track CO2 emissions and secondary material along the complex supply chains of its battery cell manufacturers. The company says the data network will also document whether the sustainability standards of Daimler are passed on throughout the entire supply chain.

The company is working with Circulor, a startup specializing in blockchain technology. The project will focus on a single battery cell manufacturer

Mercedes-Benz is working on a fleet of carbon-neutral cars to launch in less than 20 years, which requires detailed knowledge of processes throughout its entire supply chain, the company says.

The project partners first focus on cobalt, which enters the supply chain from recycling facilities. A blockchain-based system maps the production flow of the materials as well as the associated CO₂ emissions. The mapping of the material flow also records the amount of recycled material in the supply chain and displays whether Daimler’s sustainability requirements in terms of working conditions, environmental protection, safety, business ethics, compliance and human rights are passed on to all companies involved. Daimler calls on its direct suppliers to comply with these standards and requirements and also carry the provisions into upstream value chains and to monitor their compliance.

With the pilot project, Mercedes-Benz is driving transparency in the supply chain beyond the direct contractual partners.

The company is calling its goal of launching a fleet of carbon-neutral cars Ambition 2039.