BERLIN, Nov. 6, 2019 /PRNewswire/ -- The Responsible
Sourcing Blockchain Network (RSBN), a blockchain network committed
to strengthening human rights and environmental protection in
mineral supply chains, today announced that its digital supply
chain for cobalt has moved beyond pilot phase and is progressing
toward use in live production computing environments starting in
spring 2020.
Built on the IBM Blockchain Platform and assured by RCS Global
Group, RSBN will have continued participation from founding members
including Ford Motor Company, Volkswagen Group, LG Chem and Huayou
Cobalt.
Volvo Cars joins responsible sourcing leaders in the
RSBN
Starting today, Volvo Cars will join the network as
its newest member with further partners from the auto, tech and
mining sectors expected to join this year.
RSBN and its pioneering participants are building an open,
industrywide blockchain platform to trace responsibly produced
minerals from source through to end product, with RCS Global
assessing each participating entity against responsible sourcing
requirements set by the Organization for Economic Cooperation and
Development (OECD) and industry bodies.
"We are setting in motion a process of mainstreaming
responsible sourcing practices across major industries," said Dr.
Nicholas Garrett, CEO of RCS Global
Group. "We've reached significant new milestones as we've moved
beyond testing, proving the merits of this coupled technology and
assurance model can extend to a wide range of participants across
every tier of the supply chain and to other minerals. The early
addition of Volkswagen Group and now Volvo Cars to this
collaboration confirms that blockchain technology together with
responsible sourcing assurance can help address critical
sustainability issues impacting the entire industry," he
adds.
Volvo Cars eyes practical implementation starting in spring
2020
Volvo Cars will be the first company in the consortium
to fully apply the RSBN solution in its LG Chem supply chain
beginning in spring 2020. The automaker also plans to apply
RSBN to other key minerals found in its batteries, including nickel
and lithium in the future.
Volkswagen AG has been working with relevant battery suppliers
to address the need for supply chain due diligence and is now
aiming to significantly increase its supply chain mapping and
auditing activities for key battery mineral supply chains.
Through the RSBN, and other initiatives, Volkswagen AG is
utilizing technology toward securing better supply chain
traceability and transparency and to connect this information with
the sustainability performance of supply chain partners.
Ford states that as they are preparing to launch their global
all-electric Mustang-inspired SUV next year, the RSBN becomes an
important tool to strengthen transparency and visibility into its
global mineral supply chain. Expanding this network beyond cobalt
to other battery minerals will compound the RBSN's positive impact
on human rights protection and labor practices.
Achievements of pilot test phase
In initial testing,
the RSBN blockchain demonstrated how cobalt produced at Huayou's
industrial mine site in the Democratic
Republic of Congo (DRC) could be traced through the supply
chain to LG Chem's cathode and battery plant in South Korea, and then to its final
destination, a Ford plant in the United
States.
An immutable audit trail captured on the platform delivered
corresponding data providing documentation for the initial ethical
cobalt production, its maintenance and its ethical provenance from
mine to end manufacturer.
RCS Global Group builds on its supply chain mapping and auditing
activities for global OEMs and key battery mineral supply chains
and has successfully assessed and validated each supply chain
participant against responsible sourcing standards developed by the
OECD, as well as the good practice requirements of relevant
industry organizations like the Responsible Minerals Initiative
(RMI) Blockchain Guidelines.
Expansion to other minerals
Next to expansion into
other battery metals, including lithium and nickel, the platform is
also actively working to progress the solution to support tracing
other common metals including tin, tantalum, tungsten and gold,
also known as 3TG. Further announcements will be made over the
initial pilot consortiums in the additional raw
materials.
Statements regarding future direction and intent are subject to
change or withdrawal without notice and represent goals and
objectives only.
About the RSBN blockchain
Built on the IBM Blockchain
Platform, assured by RCS Global Group and powered by the Linux
Foundation's Hyperledger Fabric, the RSBN blockchain platform is
designed for cross-industry adoption. Members include Ford,
Volkswagen Group, Volvo Cars, LG Chem, Huayou Cobalt and others.
Providing traceability and verification of responsible sourcing
practices from mine to market, including the end-to-end supply
chains, the solution is a network accessible to companies at every
tier of the supply chain, which complete an onboarding assessment
verifying the members responsible sourcing practices. Focus
industries include, but are not limited to automotive and consumer
electronics, including their supply chains and the mining sector. A
governance board representing members across these industries is
being formed to help further ensure the platform's growth,
functionality and adherence to good practice principles.
Quote Sheet
Ford Motor Co.
"As a founding member of the network, we are pleased that the
project is moving to an operational phase. This will further
strengthen the human rights protection and responsible sourcing
efforts in mineral supply chains. This becomes even more
important as we start to launch our next generation of all-electric
vehicles starting next year."
Lisa Drake, VP Global
Purchasing and Powertrain Operations, Ford Motor Company
IBM
"Battery minerals like cobalt are foundational to a number of
industries, from automakers to consumer electronics and smartphone
manufacturers. The Responsible Sourcing Blockchain Network uses IBM
Blockchain to help make sourcing the minerals for these crucial
components more sustainable and traceable by establishing supply
chain transparency in an area that is of significant concern to
consumers, and consequently to brands."
Manish Chawla, Global Managing
Director, Chemicals & Petroleum / Industrial Products
Industries
Volkswagen Group
"The Volkswagen Group has set itself a goal of full
transparency in the critical supply chains of our parts and
products, which includes cobalt. Due to the particular complexity
of many critical supply chains, such transparency goals represent a
difficult challenge. Thus, with the help of new technologies and
digital solutions, the Volkswagen Group is continually working
toward securing better supply chain traceability and transparency
and to connect this information with the sustainability performance
of supply chain partners. In this manner we will be able to
identify sustainability risks at an early stage and improve our
ability to react to them in a timely manner. The Volkswagen Group
encourages other business partners to join the network"
Ulrich Gereke, Head of
Strategy for Volkswagen Group Procurement
Volvo Cars
"We have always been committed to an ethical supply chain for
our raw materials," said Martina
Buchhauser, head of procurement at Volvo Cars. "With
blockchain technology we can take the next step in ensuring full
traceability of our supply chain and minimising any related risks,
in close collaboration with our suppliers."
Martina Buchhauser, Head of
Procurement, Volvo Cars
RCS Global Group
"Applying our global responsible sourcing assurance
leadership to blockchain, RCS Global enables significant
accountability and supplier management efficiencies. As the central
assurance provider, we facilitate a trusted network of companies
that are assessed consistently against responsible sourcing best
practice, as stipulated by the OECD and RMI. We are excited to
advance from pilot to commercial operationalization, setting in
motion a process of mainstreaming responsible sourcing across major
industries. We expect significant positive social impact from our
work."
Dr. Nicholas Garrett, CEO of
RCS Global Group.
IBM
Christina Trejo
Christina.trejo@ibm.com
1-212 671 9582
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