TRANSPARENCY
The foundation for future energy-efficiency and environmental improvements.

SUSTAINABILITY
Providing services of an energy-efficient public blockchain that can manage high volume of data.

ACCOUNTABILITY
Gone are the days of ‘greenwashing’; customers can hold producers accountable.

ACCURACY
The immutability of records ensures data is accurate, secure, verifiable, and resistant to manipulation.

ENVIRONMENTAL LIABILITY

The difficulty of tracking emissions from multiple suppliers and customers across multitier value chains makes it virtually impossible for a company to reliably estimate its Scope 3 numbers. The Scope 3 measurement is fatally flawed.

The UNISOT E-liability Module (ELI) traces GHG emissions through corporate supply and distribution chains by applying basic accounting practices. It replaces infeasible Scope 2 and Scope 3 measurements with arm’s-length and auditable Scope 1 transactions. This eliminates the current duplicative counting of emissions as well as reduces incentives for gaming and manipulation.

Measuring Corporate GHG Emissions

The GHG protocol identifies three types of Greenhouse Gas emissions and gives explicit guidance for measuring and reporting them:

Scope 1: Direct emissions from sources that are owned or controlled by a company, such as its production and transportation equipment.

Scope 2: Emissions at facilities that generate electricity bought and consumed by the company.

Scope 3: Emissions from upstream operations in a company’s supply chain and from downstream activities by the company’s customers and end-use consumers.

AUDITABLE E-LIABILITIES RECORDS

Each company in the supply chain measures its Scope 1 GHG emissions as “E-liabilities”, in units of emitted CO2, CH4, N2O, etc.

Each company allocates its E-liabilities to individual products using standard cost-accounting (ABC) techniques. When a product is sold, the price includes not only the manufacturer’s price but also the product’s allocated E-liability. The E-liabilities records are secured and auditable in the public Blockchain.

The E-liability process continues until the consumer stage, where the consumer has access to the total E-liabilities generated in the products whole production and distribution cycle, as an addition to the current ingredients and nutrition label, i.e. the UNISOT Digital Product Passport. The consumer is now empowered to make purchasing decisions based on the products’ E-liability.