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CarbonChain > Case Studies > How Rabobank is working with commodity traders to build transparent supply chains for a net-zero future

How Rabobank is working with commodity traders to build transparent supply chains for a net-zero future

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Customer Company Size
Large Corporate
Region
  • Europe
Country
  • Netherlands
Product
  • CarbonChain's Carbon Accounting Platform
  • Rabo Trace Portal
Tech Stack
  • AI-powered Technology
  • Cloud-based Software
Implementation Scale
  • Pilot projects
Impact Metrics
  • Environmental Impact Reduction
  • Customer Satisfaction
  • Innovation Output
Technology Category
  • Analytics & Modeling - Predictive Analytics
  • Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries
  • Finance & Insurance
  • Agriculture
Applicable Functions
  • Business Operation
Use Cases
  • Supply Chain Visibility
Services
  • Data Science Services
  • System Integration
About The Customer
Rabobank is a cooperative bank with nearly ninety local branches in the Netherlands, each operating independently to better serve their customers and local communities. The bank also has significant international banking operations. Its Trade and Commodity Finance business unit leverages Rabobank’s long-term expertise in agricultural commodities, energy, and metals finance. Rabobank is committed to supporting its clients in addressing climate risk and building transparent, low-carbon supply chains. The bank is actively involved in the net-zero transition, focusing on high-quality carbon accounting for its financed emissions through partnerships with platforms like CarbonChain.
The Challenge
Rabobank is committed to addressing the climate challenge by taking action on its financed emissions and carbon risks. Since 2020, the bank has been working with clients to tackle high-emitting supply chains in its commodity trade finance portfolio. A significant challenge was the lack of high-quality emissions data for clients’ supply chains, which hindered the ability to set quantified targets and measure progress. Rabobank recognized that collaboration with traders and the use of CarbonChain’s carbon accounting software could accelerate action towards setting emissions reduction targets, advising clients on carbon risk reduction, and reducing the carbon footprint of its trade commodity finance portfolio.
The Solution
Rabobank is utilizing CarbonChain’s carbon accounting platform to run a pilot for carbon intensity supply chain data collection. The platform is integrated with the Rabo Trace portal, allowing clients to easily extract and share raw data. CarbonChain’s AI-powered technology automatically calculates each trade’s overall carbon footprint and carbon intensity across the entire supply chain, providing granular breakdowns. This enables both financier and trader to identify key carbon hotspots and opportunities for emissions reductions. CarbonChain calculated the emissions of a sample of copper and aluminum trades for one of Rabobank’s key trade finance clients, Concord Resources Limited, producing a comprehensive carbon footprint and intensity report with actionable insights. The platform rates suppliers, assets, and trades according to their carbon performance, enabling KPI setting and progress tracking. It also benchmarks the performance of key activities and assets against industry averages, uncovering potential emissions reduction opportunities.
Operational Impact
  • Rabobank is uncovering carbon hotspots across the entire supply chain of financed trades, providing insights to understand risk, manage emissions, advise on climate plans, and develop innovative green finance strategies.
  • With shared visibility and clarity on the carbon performance of trades, Rabobank and their clients can collaborate on KPIs and emissions reductions.
  • CarbonChain’s platform integrates smoothly into Rabobank's workflow and systems, providing automated, fast emissions calculations with low overheads due to the cloud-based software.
  • Rabobank is demonstrating transparency and commitment to decarbonization, preparing for legislative, reputational, and financial risks in the net-zero transition, and gaining potential reputational benefits and opportunities for ESG leadership recognition.

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