The most urgent task for achieving climate goals is the significant reduction of CO2 emissions. As the source of around one third of these global emissions, industry bears a major responsibility in this regard. To meet this responsibility, companies need reliable and verifiable data on materials, components, and processes to quantify the CO2 footprint for each of their products. SiGREEN provides this necessary basis for targeted emission management while preserving the data sovereignty of all participants in the supply chain. Peer-to-peer communication, whose trustworthiness is secured using cryptographic keys, enables companies to efficiently and securely identify improvement potential and reduce emissions faster.
SiGREEN PCF management – Efficient aggregation of product carbon footprints
SiGREEN provides industry leaders with the long-desired solution to effectively pursue their decarbonization goals on the product level.
How SiGREEN improves your decision making:
Climate protection as a business challenge
The most urgent task for achieving climate goals is the significant reduction of CO2 emissions. As the source of around one third of these global emissions, industry bears a major responsibility in this regard. To meet this responsibility, companies need reliable and verifiable data on materials, components, and processes in order to quantify the CO2 levels for each of their products.
It's not sufficient to simply determine the status quo, the data must also provide guidance in identifying potential for improvement and ensuring that it is implemented.
SiGREEN turns product-related CO2 figures into an effective management tool by going beyond static reporting with its dynamic product carbon footprints (Dynamic PCF). The aggregation of CO2 figures, which are determined directly at the respective stages of the supply chain, not only enables a more accurate calculation, but also quantifies the impact of changes at one point in the subsequent chain. By means of efficient and standardized communication, regular and proactive updates through suppliers are enabled. This not only allows reduction measures to be defined more precisely, but also makes their effectiveness measurable for the first time.
A crucial prerequisite for the acceptance and scalability of such an approach is the combination of trustworthiness and confidentiality. SiGREEN achieves this by using the trustworthy supply chain exchange (TSX). This technology uses decentralized architecture and cryptographic trust mechanisms that allow customers to verify the data they receive without the suppliers involved having to share confidential information.
With the help of TSX, companies can share PCF data along the supply chain. Step by step, these form the "carbon DNA" of a product; actual, confidential, and verifiable.
The carbon DNA: Managing your carbon footprint.
Sound decisions need actual data
Companies are calculating product carbon footprints for an increasing number of products. Up until now, these have mostly been an imprecise representation of the actual emissions; because usual methods attempt to compensate for a lack of insight into processes and supply chains by calculating based on assumptions and average values. As a result, they only provide inaccurate and static values.
SiGREEN solves this problem by creating "dynamic PCFs". Efficient communication between companies enables accurate quantification and aggregation of emissions at any point in the supply chain; across industries, based on actual primary data and is compatible with various established standards. The optional integration of SiGREEN with the IT infrastructure of the company's own manufacturing operations further increases the efficiency and accuracy of data collection. The user-friendly operation via a web frontend allows for easy linking to new suppliers and facilitates efficient workflows. Finally, the CO2 footprints reduced through optimization can be communicated proactively and verifiably to customers.
This provides companies with reliable data on product-related CO2 emissions so they are able to identify potential for improvement more quickly, whether in their own production or in collaboration with partners in their supply chain. Suppliers only need to generate data sets once and can share it with different customers. As a result, the overall effort required to calculate product carbon footprints can be reduced industry wide. These dynamic PCFs are therefore an effective management tool for decarbonization.
Full data sovereignty enables confidential collaboration
When calculating product carbon footprints, long and complex supply chains can be challenging. While the emissions of a company's own processes can be easily and accurately assessed, there is a lack of transparency in the supply chain. Therefore, up to 90 % of emissions are usually estimated, as suppliers are often reluctant to share confidential information about their processes and upstream supply chain. The interest in transparency is diametrically opposed to the need for confidentiality.
SiGREEN resolves this conflict of interest. Using the trustworthy supply chain exchange (TSX) technology enables a customer to verify the carbon footprint of a component submitted by its supplier in a trustworthy manner, hiding confidential details such as the identity of sub-suppliers or process details. Each company retains control over its emissions data and decides when and with which business partners the information is shared.
Data sovereignty is a prerequisite for the acceptance of cross-company exchange of emissions data. By meeting the requirements for transparency, confidentiality, and data control, SiGREEN enables efficient collaboration for decarbonization along the supply chain.
Independent verification creates transparency
For carbon footprints to provide a reliable basis for profound business decisions, their comparability is essential. Figures provided by different suppliers must be compared and aggregated along the supply chain, even across industries. Until now, the use of different standards and the lack of traceability of the data have posed a challenge.
SiGREEN enables interoperability of various established standards. The collection of metadata, e.g., on system boundaries considered and data sources used, creates additional transparency. Automatically determined data quality indicators for each PCF also enable an assessment of the soundness of the received data. Additional security is provided by the possibility of verification of the PCF by accredited certifiers. These can confirm the compliance of the data with established standards and ultimately issue certificates for the product carbon footprint (PCF) in the form of Verifiable Credentials.
Based on these Verifiable Credentials, companies can provide proof of the reliability of the PCF they submit without having to disclose sensitive information. As a result, customers can have a particularly high level of confidence in the values they receive and, for example, make them a competitive factor in purchasing decisions or use them to calculate the carbon footprints of their own products without having to undergo further, time-consuming verification.
SiGREEN – Trustworthy exchange of PCF data along the supply chain
To actively drive the decarbonisation of industry, we need reliable data that can be aggregated along the entire supply chain without compromising data sovereignty. Find out here how you can benefit from SiGREEN and why dynamic PCFs are so important.
SiGREEN allows for the convenient and safe exchange of actual data-based product carbon footprints along the value chain. It enables users to make sustainable decisions based on supplier-specific data instead of industrial averages. The innovative verifiable credential mechanism allows for sufficient transparency into your supply chains' emission data without forcing your suppliers to disclose sensitive information. Therefore, SiGREEN is the first solution that provides data trustworthiness without compromising supply chain confidentiality.
Each party along the supply chain calculates its emissions, requests supply chain emissions from suppliers (or estimates values items of lowest criticality), and aggregates the data of its product's carbon footprint. That product carbon footprint is later shared with customers. Thereby, the data for each step is provided by the supply chain tier that controls the respective processes and emissions.
As every tier aggregates its suppliers' emissions to one carbon footprint, your supply chain details remain confidential and protected from potentially being misused by your customers or their customers.
SiGREEN works with established standards like ISO for product-related carbon accounting and life cycle assessment, as well as the GHG protocol. Furthermore, it is constantly updated to comply with new standards in the future, like the WBCSD Pathfinder Framework.
PCFs extracted from existing EPD programs according to the common PCRs, PEFCRs, PEP are compatible. Metadata is requested to ensure representative use downstream the value chain.
Working with actual data, SiGREEN allows you to quantify your products' carbon footprints with unmatched accuracy. At the same time, the convenient and efficient requesting, calculation, and sharing of data enables you to quantify product carbon footprints for more of your products. This accurate data at scale provides you with the insights you need to identify emission hotspots, derive targeted reduction measures, and quantify their impact in your operations as well as with your suppliers. In consequence, you decarbonize your product portfolio more efficiently.
SiGREEN's Quality Value Indicator rates the transparency, reliability, validity, and accuracy of the data you receive. You request the required data quality according to your needs. You may, for example, require a third-party verified PCF for a highly critical component while you accept self-published inputs for non-critical components. SiGREEN allows a balance of accuracy and effort.
Especially in connection with sustainability promises, trust is a high asset. In the fight against greenwashing, control by independent third parties is indispensable. As a supplier and customer in countless global supply chains, Siemens entrusts certificates to accredited certifiers. Product carbon footprints determined through SiGREEN can be certified by those bodies, while Siemens does not issue certificates by itself.
Trust is good, data sovereignty is better
Data related to carbon footprints often allows conclusions to be drawn about processes and other strategically relevant information about the reporting company. Their communication along the supply chain requires a high level of trust in the process, especially on the part of the respective supplier.
With SiGREEN, information is only exchanged along existing business relationships, peer-to-peer, from supplier to customer. The exchange always takes place at the request of a customer, which the supplier actively responds to and thus always retains control over who receives what information at what time. In contrast to storage in a database accessible to customers, suppliers thus retain full data sovereignty with SiGREEN. No information is evaluated or monetized by third parties.
An automotive supplier determines the PCF of its component, ideally based on measured data. The CO2 value can now be passed on directly to the customer, together with some meta data. These contain, for example, information on the system boundaries taken into account, the standards or data sources used, and therefore allow the recipient to assess the quality of the PCF and compare figures from different suppliers.
Let's assume in this example, that we are dealing with a component with a significant impact on the CO2 footprint of the entire vehicle. For this reason, the OEM must be particularly able to trust the information provided by its suppliers. In order to prevent reputational damage due to incorrect PCFs, or to be able to base large-volume contract decisions on a very solid data basis, the OEM requires its suppliers to have their PCFs verified by independent third parties.
To this end, the supplier provides an accredited certifier of its trust with all of the information it requires to verify a PCF against established standards. After successful verification, the certifier issues the supplier a ‘Verifiable Credential’, an unmodifiable, unforgeable digital proof of the correct calculation of the PCF. As the holder of this verifiable credential, the supplier can create any number of verifiable proofs from it to share with a variety of customers as needed.
In this example, the OEM not only receives the PCF from their supplier, but also the verifiable proof as proof of verification. The car manufacturer can now verify this cryptographically with the help of the TSX ledger. This isn’t done just once, but automatically at regular intervals. In doing so, the OEM as a customer is also informed if the corresponding verification of a component’s PCF expires or should have been withdrawn by the certifier due to irregularities in an audit.
This process is carried out by the OEM for a large number of the components in its product – 3rd party verified wherever required. The aggregation of the individual carbon footprints, which suppliers themselves have in turn determined on the basis of information from their suppliers, forms the carbon DNA of the vehicle; accurate, secure and verifiable.
TSX enables the aggregation of accurate, primary data based, and dynamic PCFs while preserving the full data sovereignty of all parties involved. As a consequence, SiGREEN enables companies to identify improvement potentials more precisely, to lead measures to success based on data, and thus to drive the decarbonization of entire supply chains more effectively and efficiently.
International security according to European rules
For data exchange, SiGREEN relies on the European IDUnion system: "an open ecosystem for decentralized identity management, which can be used worldwide and is based on European values and regulations." (idunion.org). The identities of the participants and the authenticity of the data are verified with the help of public digital keys. Certificates, such as CO2 certificates, can be stored in digital wallets, verified, and presented to third parties as needed. This means that identity management no longer lies centrally with a technology group, but with the user themself (Self-Sovereign Identity - SSI).
The data is transferable and compatible with other international networks. The infrastructure builds on existing technical standards and enables the use of sovereign identities in the European single market. The decentralized structure, the self-management of identity data, the selective disclosure of data by the user, and the operation of the network nodes in Europe ensure and improve the important data protection rights and guidelines of data economy.
Shape your company's green future with SiGREEN
Trustworthy data is the first step to reducing emissions. But if we're going to meet our climate goals, we need to work together.