Hyundai Motor Company and Kia Corporation introduced its AI-enabled, blockchain-based Supplier CO2 Emission Monitoring System (SCEMS) to manage the carbon emissions of its cooperative business partners.
Just What Is Blockchain?
Blockchain technology is a special kind of database that allows businesses to share information in a secure and transparent way. It uses blocks of information that are linked together. Once information is added to the blockchain, it cannot be changed or deleted. This makes it great for keeping track of things like orders, payments, and transactions. It also helps prevent unauthorized changes to the data.
Traditional databases have difficulties in accurately recording financial transactions. For example, when a property is sold, it is challenging to ensure that both the buyer and seller agree on the exchanged money and ownership transfer. Each party could dispute the transaction, leading to trust issues.
A third party must oversee and approve transactions, which makes things more complicated and risky. If the central database is hacked, both parties are at risk.
Blockchain is a secure way to record transactions. It uses a decentralized system, which means no one can manipulate the data. This makes it useful for things like buying and selling property, digital currency exchanges, etc.. Both the buyer and the seller have their own records, and all transactions must be approved by both parties. If someone tries to change a past transaction, the whole record gets corrupted.
Supplier CO2 Emission Monitoring System (SCEMS)
SCEMS is designed to compute carbon emissions at every stage of a cooperative partner’s supply chain while assuring data transparency and integrity. Hyundai Motor and Kia successfully verified the effectiveness of the high-performance blockchain technology and adopted it to accomplish their critical goal of promptly and securely collecting carbon emissions data.
This solution is also expected to relieve suppliers from this time-and-cost-consuming work and enable them to manage their carbon emissions with accuracy. By leveraging artificial intelligence (AI) and high-performance blockchain technology, business partners can efficiently monitor and manage the collected data and carbon emission status at their respective workplaces.
With this innovative system, Hyundai Motor and Kia ultimately aim to tackle climate change issues by preemptively meeting local and global environmental regulations and establishing sustainable supply chains within the companies and with its cooperative partners.
“Supplier CO2 Emission Monitoring System unlocks a revolutionary approach to managing carbon emissions and combating climate change, ushering in a new era of sustainable supply chain within our cooperative network,” said Seung Hyun Hong, Head of Materials Research and Engineering Center at Hyundai Motor and Kia. “We stand proudly at the forefront of this transformative journey, collaborating with our partners to shape a greener and brighter future for all.”
Through the system, it is possible to secure reliable carbon emission data over the entire business operations of its suppliers, including raw material procurement, manufacturing processes and product transportation. The system’s next-generation technology will enable regulators, stakeholders and investors to have complete confidence in the accuracy of the data.
The implementation of blockchain technology to manage carbon emissions is a significant step toward promoting sustainable practices in the industry. Integrating AI technology and high-performance blockchain will enable it and its partners to set carbon reduction targets and accurately predict future carbon emissions, fostering practical climate change mitigation efforts.
With the implementation of this system Hyundai Motor Company and Kia Corporation seek to reaffirm their commitment to actively address the issue of climate change while promoting sustainability within the automotive industry.