Blockchain sustainability scoring to help CSPs and vendors tackle emissions

Commercial context

Despite the numerous ways in which the tech sector contributes towards social good, it is nonetheless inescapable that the sector is a significant contributor to global carbon emissions. In their Carbon Emission Report this year, Electronics Hub confirmed earlier findings that many of these emissions are indirect – the result of carbon-intensive supply chains. CSPs can provide leadership on what is to many the most pressing issue of the day by providing a means to reduce not just direct emissions, but also indirect – otherwise known as ‘Scope 3 emissions.’

The solution

The Sustainability scoring for all Moonshot Catalyst was set up for this purpose, and is tasked with meeting four primary goals:

• Reduce absolute Scope 3 emissions by 55% by 2030
• Cut energy consumption of suppliers by at least 25% by 2025
• Reduce supply chain transportation mileage by at least 10%
• Shift suppliers’ energy usage to green energy by at least 25%

The project’s solution is to track and monitor emissions that occur in the overall value chain by using a hardware wallet (‘trust anchor’) to gather and notarize machine data. Using machine identity, the wallet provides publicly verifiable data about a machine’s energy consumption and productivity. This data is then used to demonstrate the environmental impact of any given machine and is used to form a sustainability score for its owner. When the data is collected and vendors scored, CSPs can integrate this into their own overall emissions data to track their own Scope 3 emissions.

The Catalyst team is beginning the project with machines that are easy to quantify, and that are known to be significant contributors to emissions. As such, the early stages of the project have been dedicated to investigating the sustainability of vendor servers that handle API provisioning. The motivation behind this is to understand the sustainability impact of each CSP’s MVNO partners through their interaction with these servers. Beyond this, the project team is also investigating the impact of additional functions of vendor machines in traditional supply chain applications, as well as end-user devices such as broadband routers. These applications will add yet more depth to the sustainability scores and provide a basis for adding more machines and applications over time.

Applications and wider value

The Catalyst helps CSPs take a lead role in the fight against carbon emissions, and also lends a hand to partners seeking to improve their sustainability. The transparency and reliability of the blockchain-based solution is a clear means to gauge the energy efficiency of hardware and promote environmentally friendly practices – helping CSP suppliers and partners not only limit their environmental impact but act proactively ahead of anticipated regulatory mandates, gain a competitive advantage as sustainability-focused organizations, and improve their own bottom lines by minimizing waste and maximizing efficiency.

According to Neeta Moodbidri, Senior Director, Wholesale Product Management at T-Mobile USA, “our primary goal is to help create a sustainable future for all, and we cannot accomplish that unless our partners are aligned with us in the execution of reducing our collective carbon footprint. This technology could be widely adopted by other telcos to drive the entire industry toward carbon neutrality, and can also be deployed across different industries altogether. Additionally, this solution is good for business as it promotes operational efficiency and can unlock additional revenue opportunities through token economics.”

As more and more devices become connected, and wireless services play an increasingly prevalent role in all our lives, we as an industry must ensure that we do not trade convenience for long-term security. To this end, this Catalyst is a timely means for the industry to enhance its position as not just as an innovator, but as a leader in creating sustainable practices that benefit everyone. To find out more about the project join us at DTW23 – Ignite in Copenhagen between 19-21 September 2023, or get in touch with the Catalyst team directly here.