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Mercedes Benz & its Procurement Ambition 2039

Mercedes-Benz has come up with a new solution to tackle the rising climate change concerns. It is called ‘Ambition2039’ and as the name suggests Mercedes wants to achieve that aim in 20 years or less. The goal is to produce a fleet of passenger vehicles with a carbon emission score of zero. To make that happen the company requires clear access to all forms of information related to the entire work chain. It will leverage a blockchain-based system, by which the mapping of production flow in the supply chain will be done.

But what is this Blockchain and how will it help Mercedes fulfil its aim?

As we all know, Blockchain is a way of storing data in an organized and highly secure manner without having to depend on a central authority. It holds a great potential regarding the decentralization of services in many fields. The technology uses a principle of linking data following its encryption, henceforth guaranteeing un tempered data. It also helps in gaining complete transparency and prevention of illicit manipulation of data which pretty much answers why the company wants to instill the technology into their work processes.

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To successfully put “Ambition2039” into effect Mercedes-Benz will need to ensure complete elimination of carbon footprints and that can only be achieved by an unclouded mapping of production flow. Mercedes-Benz AG and Daimler AG acknowledges that “Ambition2039” will require cooperation with suppliers for successful implementation of the idea Mercedes is one of the  first company to adopt Blockchain technology in mapping CO2 emissions and that this practice will result in a better solution for both the environment and business.

How the system will work?

Mercedes-Benz has teamed up with a startup called Circular, a British battery cell manufacturer and together they are working on projects to improve the availability of information regarding CO2 content in Mercedes’ cobalt supply chain. The system used for this process is based mostly on Blockchain. They keep a check on the number of recycled elements being used in the supply chain as well as the level of CO2 emissions. Mercedes has also made a few plans beyond the carbon-neutral ambition. Some of them include closing material cycles and building a circular economy. However, other than data transparency Blockchain also helps in ensuring passing on of sustainability necessities like human rights, business ethics, proper working conditions, safety, environmental protection and compliance to involved parties.

Will Mercedes Benz achieve the goal?

So, that is how the German global automobile manufacturer plans to eradicate carbon footprints by the application of Blockchain. However, this is not the first time it is around the news mill. Around the same time last year, the company announced a partnership with Icertis, a contract management software for the same concern. The partnership was made to enhance transparency in the company’s supply chain through Blockchain technology. It seems the company is progressing with time and finally, it is just a way behind the actual processing. The initial projects are being taken on the production of aluminum, steel and battery cells, which are carbon-intensive and hopefully, all the materials will be included in the list in near future.

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