Kia & Hyundai Using Blockchain for Sustainable Procurement

Hyundai Motor Group Innovation Centre Singapore (Credit: Hyundai)
Hyundai Motor Group Innovation Centre Singapore (Credit: Hyundai)
How are Hyundai and Kia using Blockchain-based Carbon Emissions Monitoring to Grow Sustainable Procurement

Car brands Kia and Hyundai leverage a blockchain based carbon emissions monitoring system to work with their suppliers to help grow a sustainable supply chain.

The strategy of using a Supplier CO2 Emission Monitoring System (SCEMS) in partnership with cooperative procurement partners allows them to gather secure and accurate carbon emissions data as part of their supplier relationship strategy.  This is combined with the implementation of artificial intelligence to create accurate predictions of future emissions across their procurement ecosystem. 

Kia & Hyundai Using Blockchain for Sustainable Procurement (Credit: Hyundai Motor Group)

How does the Supplier CO2 Emission Monitoring System work?

As procurement and supply chain teams closely monitor supplier performance, and the impact on their company sustainability data, the SCEMS system allows Hyundai and Kia to monitor emissions at all stages of their partner’s supply chain.  The strategy is designed to relieve suppliers from this time- and cost-consuming work and let them manage their carbon emissions with accuracy. 

The blockchain technology lets their business partners confidently monitor and manage the data and carbon emission status and report it back to Hyundai and Kia.  

“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 Centre 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.”

Using blockchain technology to help suppliers 

Using the system, Hyundai and Kia are able to secure reliable carbon emission data from their suppliers, including raw material procurement, manufacturing operations and the transportation of their products. Technology also allows regulators, stakeholders and investors to have complete confidence in the accuracy of the data.

Having the blockchain enabled technology in place gives Hyundai, Kia and their procurement network the chance to accurately predict their future emissions. This foresight helps with efforts to mitigate future issues with emissions in various parts of their own value chains.  

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