CarbonChain's Solution for Gunvor's Carbon Disclosure Challenge

Gunvor Group Ltd is one of the world's largest independent commodities trading houses by turnover. They create logistics solutions that safely and efficiently move physical energy and bulk materials from where they are sourced and stored to where they are demanded most. Gunvor is a global leader in naphtha trading. In 2021, they faced a significant challenge when a key customer requested greenhouse gas (GHG) emissions data for all their naphtha trades, covering the entire supply chain.

Gunvor Group, one of the world's largest independent commodities trading houses, faced a significant challenge when a key customer requested greenhouse gas (GHG) emissions data for all their naphtha trades. This data was to cover the entire supply chain, from the extraction of crude oil and condensate to the delivery of naphtha at the customer gate. However, Gunvor had limited information about their supply chain emissions. They had some calculations for their own vessels, but lacked data for upstream oil and gas activities or for the processing of oil into naphtha, except for their own refineries. To meet the customer's request, Gunvor would have 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. The data analysis, calculation, and reporting process was set to be a huge challenge, as well as a cost and time burden.

To address this challenge, Gunvor turned to CarbonChain. Between September and October 2021, CarbonChain ran a carbon accounting pilot with Gunvor. They first assisted Gunvor's logistics and naphtha trading teams in exporting all the relevant raw data from their internal systems, easing their data-gathering burden. Then, using their AI-powered carbon accounting software, CarbonChain provided Gunvor with their emissions calculations. They analyzed and organized the data into a tangible per-cargo analysis of each trade's emissions, calculated as carbon dioxide equivalents (CO2e). This provided Gunvor with a comprehensive overall supply chain carbon footprint report, as well as a trade-by-trade analysis, which was formatted to meet the specific needs of their customer. Following this pilot, Gunvor was set up on CarbonChain's cloud-based carbon accounting platform for automated, ongoing emissions tracking.

• The collaboration with CarbonChain resulted in several operational benefits for Gunvor. Firstly, they were able to meet their customer's demand for carbon disclosure in a timely and efficient manner, avoiding potential inefficiencies and inaccuracies. Secondly, Gunvor gained new actionable insights for their journey towards lower-carbon trading. They now have a quantified average carbon intensity for their naphtha trades, which can serve as a benchmark for future improvement. CarbonChain also helped Gunvor differentiate between their Scope 1, 2 and 3 emissions, enabling them to robustly track, report, and progress towards emissions reductions targets for each scope. Lastly, the use of CarbonChain's platform for automated, ongoing emissions tracking has simplified Gunvor's tracking, reporting, and target-setting processes.

• Gunvor was able to comply on time with their customer's reporting demand, avoiding time and cost inefficiency, and reducing the risk of incomplete, inaccurate data.

• Gunvor gained a quantified average carbon intensity for their naphtha trades, which can be used as a benchmark and inform their lower-carbon trading goals.

• Gunvor can now directly upload raw supply chain documentation onto the CarbonChain platform for automated, ongoing emissions tracking.