CarbonChain > Case Studies > How CarbonChain helped Gunvor meet customer demand for carbon disclosure

How CarbonChain helped Gunvor meet customer demand for carbon disclosure

Customer Company Size

Large Corporate

Product

CarbonChain Platform
AI-powered Carbon Accounting Software

Tech Stack

AI-powered Carbon Accounting
Cloud-based Platform

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Cost Savings
Environmental Impact Reduction
Digital Expertise

Technology Category

Analytics & Modeling - Predictive Analytics
Platform as a Service (PaaS) - Data Management Platforms

Applicable Industries

Oil & Gas
Transportation

Applicable Functions

Logistics & Transportation
Business Operation

Use Cases

Supply Chain Visibility

Services

Cloud Planning, Design & Implementation Services
Data Science Services

About The Customer

Gunvor Group Ltd is one of the world's largest independent commodities trading houses by turnover. The company specializes in creating logistics solutions that safely and efficiently move physical energy and bulk materials from their sources and storage locations to where they are most in demand. Gunvor is a global leader in naphtha trading, a key component in the production of gasoline and other petrochemical products. The company operates in a highly competitive and regulated industry, where compliance with environmental standards and customer demands for transparency in emissions data is increasingly important. Gunvor's operations span the globe, and they are committed to meeting the evolving needs of their customers while pursuing lower-carbon trading practices.

The Challenge

Gunvor, a global leader in naphtha trading, faced a significant challenge when a key customer requested comprehensive greenhouse gas (GHG) emissions data for all their naphtha trades. This request covered the entire supply chain, from the extraction of crude oil and condensate to the delivery of naphtha at the customer's gate. Gunvor had limited information about their supply chain emissions, with some calculations for their own vessels but lacking data for upstream oil and gas activities and the processing of oil into naphtha, except for their own refineries. To calculate the entire supply chain carbon footprint for every trade, Gunvor needed to gather raw data from various sources and access time-sensitive, asset-level GHG emissions information, which was difficult, expensive, or impossible to obtain. This process, along with the subsequent data analysis, calculation, and reporting, posed a huge challenge, as well as a cost and time burden.

The Solution

To address the challenge, Gunvor partnered with CarbonChain to run a carbon accounting pilot between September and October 2021. CarbonChain assisted Gunvor's logistics and naphtha trading teams in exporting all relevant raw data from their internal systems, easing the data-gathering burden. Using their AI-powered carbon accounting software, CarbonChain provided Gunvor with emissions calculations, analyzing and organizing the data into a tangible per-cargo analysis of each trade's emissions. All GHG emissions were included, calculated as carbon dioxide equivalents (CO2e). This comprehensive report provided Gunvor with an overall supply chain carbon footprint, as well as a trade-by-trade analysis, formatted to meet their customer's specific requirements. The report, based on an independent database, can be audited and certified. Following the pilot, Gunvor was set up on CarbonChain's cloud-based carbon accounting platform for automated, ongoing emissions tracking. This platform allows Gunvor to directly upload raw supply chain documentation, with CarbonChain's AI-powered technology quantifying the carbon footprint with asset-level breakdowns for each trade, facilitating tracking, reporting, and target-setting.

Operational Impact

Gunvor achieved compliance with their customer's reporting demand, submitting the report in the required format with the necessary level of accuracy and granularity. This avoided time and cost inefficiency and reduced the risk of incomplete, inaccurate data.
Gunvor gained new actionable insights for their journey towards lower-carbon trading. They obtained a quantified average carbon intensity for their naphtha trades, which can be used as a benchmark to inform their lower-carbon trading goals.
CarbonChain helped Gunvor differentiate between their Scope 1, 2, and 3 emissions, allowing them to robustly track, report, and progress towards emissions reduction targets for each scope.
Gunvor gained insight into the large emissions variation between naphtha sources according to geography, with data revealing countries with higher average emissions intensities due to poor flaring track records.
Gunvor now has automated ongoing internal emissions tracking, with the ability to directly upload raw supply chain documentation onto the CarbonChain platform. This makes tracking, reporting, and target-setting easier.