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CarbonChain enables the automated accounting of carbon emissions across supply chains

When it comes to supply chains, they are a web of carbon-intensive activities, and determining which company is responsible for pollution along the way has proven to be difficult. CarbonChain, an early-stage startup based in London and founded by supply chain veterans, aims to make carbon accounting easier at every stage of the supply chain by automating the process.

"CarbonChain is a project that aims to keep track of the carbon footprint of everything. In terms of customers, we specialize in Scope 3 emissions as well as industries that produce the highest levels of pollution. In addition, we assist businesses in automating their carbon accounting "Adam Hearne, the company's CEO and co-founder, provided further explanation.

With its artificial intelligence-powered carbon accounting platform, the company aspires to quantify the carbon footprint of every asset on the planet, which is a lofty ambition. According to him, "as a result, we use a bottoms-up approach for every asset on the planet that emits emissions, which is significant."

Business owners, Hearne acknowledged, routinely ignore their requests for data, in which case the blockchain company CarbonChain makes educated guesses and sends them to the businesses for confirmation. He asserted that, in the vast majority of cases, businesses do not disagree with CarbonChain's conclusions. The reason for this could be that it comes down to money — they are required to provide information about their carbon emissions to their financial institutions —

He stated that banks that provide financing to businesses throughout the supply chain are becoming increasingly interested in learning about the carbon footprint of the companies that are receiving their funds, according to him. A study conducted by CDP Financial Services came to the conclusion that a company's carbon emissions are a good indicator of the stability of its cash flows.

"Their research revealed that when you finance something with a high carbon footprint, it is usually because the investment is backed by a coal-fired power plant that is more than 50 years old and using outdated technology. The result is an extremely unreliable grid, and you may experience brownouts on that particular grid. As a result, the asset is operational 90% of the time and could be operational 100% of the time if it were equipped with a new solar-plus-wind-plus-battery configuration "Hearne went on to explain the failover system.

However, while the company's technology for measuring carbon usage could be applied more broadly, the founders chose to focus their efforts on the commodities supply chain because they believe it is the world's largest polluter and that quantifying that pollution is the first step toward controlling that pollution.

Specifically, "CarbonChain's granular, real-time supply chain carbon footprinting closes the data gap, enabling climate-critical sectors and those who finance them to act immediately," Hearne said.

A $2 million seed round led by Lowercarbon Capital was completed by CarbonChain at the end of 2020. Lowercarbon Capital is a fund that invests in companies like CarbonChain that are attempting to reduce global carbon emissions. The startup was also a part of the Y Combinator Summer 2020 cohort, which was a great opportunity.

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