Glassdome Glassdome

Insights

News 2024.02.05

Glassdome, together with SK C&C, establishes a Digital Carbon Passport platform based on Life Cycle Assessment (LCA) at Lotte Aluminium and Choil Aluminum.

- Glassdome helps manufacturing companies respond to global environmental regulations with digital transformation and product carbon footprint (PCF) solutions


- Lotte Aluminium and Choil Aluminum have an LCA-based total carbon emissions management system that goes beyond EU CBAM compliance


- Korea’s first application of a  ‘Carbon Emissions Management Platform’ that simultaneously supports EU CBAM and battery regulation compliance


- Platform enables calculation of raw material supplier carbon emissions (Scope 3) and creates product-level carbon footprint management system

Seoul, South Korea (Feb 5, 2024) - Glassdome, a company specializing in carbon emissions data management solutions, has partnered with SK C&C (CEO Yoon Poong-young) to develop the "Digital Carbon Passport platform" for Lotte Aluminium Co., Ltd., (CEO Choi Yeon-soo) and Choil Aluminum Co., Ltd., (CEOs Lee Young-ho and Seong Won-mo). This significant collaboration was announced on February 5th.


This project is a proactive response to new climate change and greenhouse gas reduction regulations, particularly those in the European Union (EU) and the United States. It is specifically designed to address the EU Carbon Border Adjustment Mechanism (CBAM) and create a competitive edge in carbon emissions compliance.

 

The Digital Carbon Passport initiative aims to establish a robust platform rooted in Life Cycle Assessment (LCA) methodology, meticulously assessing the entire carbon footprint throughout a product's lifecycle. It is also a preemptive measure designed to align with new EU battery regulations set to take effect in February 2025.

 

This is a groundbreaking achievement within South Korea, as the first-ever deployment of a carbon emissions management platform designed to seamlessly ensure compliance with both the EU Carbon Border Adjustment Mechanism (CBAM) and battery regulations.

 

Lotte Aluminium is a materials company specializing in the production of aluminum foil tailored to meet the capacity and voltage requirements of secondary batteries. Choil Aluminum is a supplier of the raw materials essential for the production of aluminum foil for Lotte Aluminium. These two companies are part of the global secondary battery supply chain and are subject to EU CBAM and EU battery regulations.

 

The Digital Carbon Passport platform introduced to Lotte Aluminium and Choil Aluminum is designed to gather and analyze all carbon emissions data. Many carbon footprint initiatives only cover Scope 1 and 2, which include direct and indirect emissions originating from product production processes. The Digital Carbon Passport includes Scope 3, which encompasses emissions stemming from raw material suppliers. 

 

As a result, both companies have achieved a groundbreaking industry milestone by establishing a comprehensive product-level carbon footprint management system.

 

The Digital Carbon Passport platform adheres to the ISO 14067 international standard and serves as a tool to streamline the compulsory reporting of carbon emissions in accordance with the European Union's Carbon Border Adjustment Mechanism (CBAM). CBAM imposes tariffs on carbon emissions associated with six major product categories, such as steel and aluminum. It goes beyond merely accounting for carbon emissions generated during the production process; it also supports comprehensive life cycle assessments, quantifying and evaluating the environmental impact throughout the entire product life cycle.

 

Glassdome has the world's first technology to manage the carbon footprint life cycle of products based on primary data. Distinguishing itself from alternative solutions in the market, which often rely on users manually inputting carbon emissions data based on default or average values from public sources, Glassdome's approach utilizes real data. This methodology significantly reduces the risk of potential overestimation of carbon emissions, which could result in penalties or uncertified reports. Glassdome uses a real-time data collection and analysis approach to safeguard the confidentiality of sensitive information. This process efficiently converts the data into carbon emissions metrics and transmits only this processed information, ensuring both accuracy and security.


Seungmin Lee, the Head of the ESG Strategy Division at Lotte Aluminium, said, "We have entered into this agreement with a proactive commitment to comply with the carbon-related regulations set forth by the EU. With the implementation of this contract, we have successfully obtained precise and trustworthy carbon emissions data, gathered in real-time from every stage of our processes. I am eager to embrace this opportunity as it paves the way for us to not only reduce our carbon footprint but also enhance our competitiveness by introducing eco-friendly technologies."

 

Seong-hoon Jeong, Head of the R&D Center at Choil Aluminum, expressed, "Through this contract, we have acquired a robust carbon emission management platform, aligning perfectly with the carbon neutralization requirements of our secondary battery customers, who are investing in the EU and US markets." He further emphasized, "By effectively addressing key global carbon neutralization initiatives, including the Carbon Border Adjustment System (CBAM) and Life Cycle Assessment (LCA), we have solidified our position as an environmentally-conscious battery materials company. We are also fully prepared to comply with additional carbon management regulations such as PCF (Carbon Footprint) and DBP (Digital Battery Passport), reinforcing our commitment to sustainability."

 

Jinki Ham, Head of Glassdome Korea, emphasized, "A substantial portion, ranging from 60% to 90%, of product carbon emissions falls within the Scope 3 category. Accurate carbon emissions data from our manufacturing partners is crucial for an exact evaluation of the entire supply chain's carbon footprint and for formulating effective long-term carbon reduction strategies." He continued, "We've established a comprehensive framework for the systematic collection and management of carbon emissions data from the partner suppliers of Lotte Aluminium such as Choil Aluminum. We will commit to collaborating closely to facilitate substantial carbon reductions within each company, setting the stage for sustainable business operations."

#CBAM#PCF#scope3
View More
슬라이드 이미지

PCF 2024.01.31

When is the 2023 Q4 CBAM Reporting Deadline?

The original deadline for submitting the 2023 Q4 CBAM report was on January 31, 2024. However, that’s no longer the case. Technical issues have complicated submissions for many companies. Therefore, the European Union (EU) has pushed back the deadline.

 

How can companies that import CBAM goods take advantage of the new deadline? On February 1, 2024, the EU is adding a new feature on their website. Companies will be able to request delayed submission on the Transitional Registry, which will give them an extra 30 days to submit their CBAM report. 

 

Companies who haven’t run into technical issues are still encouraged to submit their report by the end of the standard reporting period. If they do so, they’ll be able to modify and correct their first three CBAM reports until July 31, 2024.

What is CBAM?

CBAM stands for Carbon Border Adjustment Mechanism. It’s an EU tool designed to put a fair price on the carbon emitted during the production of carbon-intensive goods that enter the union. CBAM confirms that producers have paid for imported embedded carbon emissions at the same rate as domestic production.

 

The primary goal of CBAM is to stop carbon leakage. Carbon leakage results when EU-based companies shift their carbon-intensive production abroad or replace EU products with more carbon-intensive imports. This harms EU-based manufacturers, undermines the EU’s climate goals, and encourages environmentally harmful or inefficient manufacturing methods. 

 

CBAM is currently in a transitional phase where it only applies to six industries: cement, iron and steel, aluminum, fertilizers, electricity, and hydrogen. These “CBAM goods” were chosen because they are often carbon intensive to produce, and they are considered to have a high risk of carbon leakage. This phase will last until mid-2025.

 

During the early transitional phase, companies are allowed to use default reference data as part of their reporting. These default values represent a rough world average created by the European Commission’s Joint Research Centre. This is only until July 2024, when the EU will require a more stringent methodology.

 

Need help getting accurate data? That’s where Glassdome comes in. Check out our emissions tracking solution to see how we can help you satisfy CBAM requirements and get more efficient while you do it.

#CBAM#sustainability#PCF
View More
슬라이드 이미지

PCF 2024.01.16

What’s the Difference Between the GHG Protocol and CBAM?

ESG regulation never stops evolving, and the Greenhouse Gas (GHG) Protocol and Carbon Border Adjustment Mechanism (CBAM) are no different. Companies aren’t sure how to navigate and implement new regulations and standardized frameworks.

 

One of the most common question we hear is this: If your company is already following the GHG Protocol framework, do you comply with CBAM?

Overview


The GHG Protocol and CBAM (pronounced see-BAM) are closely linked, but they serve different purposes and address distinct climate action challenges.

 

The GHG Protocol is a voluntary tool that organizations can use to measure and manage their emissions. CBAM is a European Union regulation (part of The European Green Deal) designed to address carbon leakage and ensure fair competition in the international trade of goods. Figure 1 is a overview of the key differences between the GHG Protocol and CBAM:

Figure 1. Differences between the GHG Protocol and CBAM.

The GHG Protocol is voluntary, developed by non-profit organizations, considers Scope 1, 2, and 3, and covers a broad spectrum of emissions. CBAM is mandatory for several types of importers to the EU, developed by the EU, does not consider all of scope 1, 2, and 3, and is aimed solely at carbon leakage. They both apply to business, focus on greenhouse gas accounting and emission measurement and reporting, and are the result of international collaboration.

The key overall difference between the two methodologies is that CBAM is not focused on determining GHG emissions at the corporate level, but rather at the product level.

 

So while the GHG Protocol and CBAM share commonalities in their application to businesses, their focal points diverge.

 

Before we dive into details, let's look at how the transitional phase of CBAM works. If you want to navigate the regulations and stay compliant, you need to understand the workflows and governance system.

Today, CBAM only applies to a specific set of goods imported into the EU: cement, iron and steel, fertilizer, aluminum, electricity, and hydrogen.

Figure 2 illustrates the transitional phase of CBAM.

 

Figure 2. The Governance System and Workflows Included Under the Transitional Phase of CBAM.

  1. The importer gets CBAM goods from global installations outside the EU.
  2. Customs declare each import in the usual process.
  3. Customs authority informs the EU Commission via CBAM Transitional Registry of the import. This serves to verify the thoroughness and precision of quarterly CBAM reports.
  4. Reporting declarant requests embedded emissions data from CBAM goods' operators.
  5. Declarant submits quarterly CBAM report to CBAM Transitional Registry.
  6. The Commission exchanges information with EU authorities and determines which reporting declarants need to submit CBAM reports. The Commission also performs spot checks and addresses irregularities within the reports. 
  7. The importer, if penalized, informs the operator to prevent future issues.

Got it? Let's get started on the differences between the GHG Protocol and CBAM.

Already thinking you might need to look at software that’ll help you through data collection and reporting? We’ve got you covered.

#CBAM#GHG#Scope3
View More
슬라이드 이미지

Mfg 2024.01.15

Why Does Manufacturing Need to Change?

Manufacturers are at an inflection point. Making things and getting them to where they need to be is far more complex than it once was. While manufacturing moves from developed countries to new frontiers, supply chains grow more and more volatile. How can modern manufacturers understand and adapt to these changes?

What’s happening to manufacturing in developed countries?

Since the late-20th century, manufacturing's share of worldwide value creation has been decreasing. According to the World Bank and OECD, the global share of manufacturing in GDP has decreased from 18.9% in 1997 to 16.6% in 2021 (see chart).

This decline in manufacturing’s importance to the global economy began in leading developed countries. Deindustrialization has been clearly evident in the United States, Europe, and Japan for some time. Recently, it has also been observed in the Four Asian Tigers – South Korea, Singapore, Hong Kong, Taiwan – as well as in China.

In the United States, manufacturing decreased from 16.1% in 1997 to 10.7% of GDP in 2021. In South Korea it decreased from 27.6% in 1988 to 25.5% in 2021. Manufacturing’s share of GDP is falling even in major manufacturing nations like Germany, Japan, and China.

 

Are developed countries just “hollowing out?”

In addition to deindustrialization, much of this decline in developed countries can be attributed to offshoring, leading to a phenomenon called "hollowing out." This is when manufacturing facilities move to countries with lower labor costs, resulting in a decline in the manufacturing workforce in the original country. In a social context, it can be dangerous as middle-class jobs disappear, wealth concentration increases among the affluent, and the low-income population grows.

This isn’t a case of self-centered manufacturers looking for marginal gains on their balance sheet. The IMF notes that this decline in the manufacturing share of the overall economy is considered a natural occurrence as the entire economy develops. The fact that consumption expenditures on manufactured goods have remained relatively stable over the past few decades supports this argument.  

However, despite these factors, it is undeniable that the traditional manufacturing-centric industrial structure is undergoing a revamp, and manufacturing’s share of the developed world’s economy is decreasing. 

Supply chain challenges

The global supply chain has become historically volatile. The Global Supply Chain Pressure Index (GSCPI), which measures the status of the global supply chain by integrating transportation cost data and other manufacturing-related indices, has fluctuated wildly in recent years. This instability is due to trade tensions between the U.S. and China, a worldwide spike in protectionism, and, of course, the COVID-19 pandemic.

Global Supply Chain Pressure Index

How can the manufacturing industry strengthen its competitiveness to overcome these challenges?

Deindustrialization and global supply chain volatility are challenging the manufacturing industry. Without a system that can adapt flexibly to these shifts, the sector may face even greater crises. 

That’s why Digital Transformation is the hottest topic in manufacturing innovation. 

Digital Transformation (DX) refers to the process of introducing and operating digital technologies to develop new products and innovate existing products or operations. This includes cutting-edge tech like the Internet of Things (IoT), cloud computing, Artificial Intelligence (AI), and big data solutions. Digital Transformation is designed to improve efficiency and customer experiences and create additional value through innovation and new inventions.

The COVID-19 pandemic acted as a catalyst for Digital Transformation. A survey in 2020 showed that 37% of European companies and 27% of U.S. companies had not adopted digital technologies, but in 2021, 55% of European companies felt the need to adopt digital technologies due to the pandemic, and over 46% increased their investments in digital technologies.

Manufacturers have their own subset of DX: Industrial Digital Transformation (iDX). iDX is the process of addressing industrial challenges and creating new value by integrating digital technologies such as cloud computing, big data analysis, AI, and 5G throughout the entire industrial process.

iDX can be broadly organized into four categories: process innovation, product intellectualization, service enhancement, and the creation of new industries and business models.

The future

Despite its promise, Digital Transformation is not progressing as rapidly as expected. While almost all companies have started DX projects in some form or at some level, most are struggling to fully complete the initiative and embed Digital Transformation in their DNA.

Companies and governments worldwide are implementing various policies to promote the Digital Transformation of industries. In future insights, we’ll explore the DX promotion policies of different countries and regions. 

Looking to implement iDX in your factory to make it more efficient and increase visibility and productivity? Look no further. Our Manufacturing Operations platform is the best way to cut downtime and raise quality.

#manufacturing_operations#Digital_Transformation#DX
View More
슬라이드 이미지

PCF 2023.06.30

Carbon Regulations Heating Up: CBAM, SEC, FAR

As concerns about climate change continue to grow on a global scale, governments and regulatory bodies are taking substantial measures to address environmental issues.

 

In this blog post we’ll cover the 3 regulations receiving the most attention from Glassdome customers around the globe:

The European Union Carbon Border Adjustment Mechanism (CBAM)

 

The EU’s CBAM is an ambitious initiative aimed at addressing carbon leakage and guaranteeing European industries a level playing field on the global market. With the first emissions being calculated as of October 1, 2023, CBAM will require importers to pay a carbon border tariff equal to the carbon cost borne by European industries.

 

This regulation seeks to prevent the relocation of carbon-intensive production outside the EU to regions with lenient environmental regulations. Consequently, companies exporting products to the EU will face new compliance challenges and potential financial consequences. The first imported products to be impacted are: cement, fertilizer, iron & steel, aluminum, electricity, and hydrogen.

 

The SEC’s GHG Inventory Proposal

 

The SEC’s proposed rule seeks to improve and standardize climate-related disclosures for investors, including greenhouse gas emissions, climate risks, and transition strategies to a low-carbon economy. This initiative aims to increase transparency and enable investors to make informed decisions based on the climate-related risks and opportunities presented by companies.

 

Thousands of publicly traded companies will be impacted by the proposed rule, which will require them to provide comprehensive and consistent information regarding their climate-related performance and resilience.

 

Federal Acquisition Regulation (FAR) Case 2021-015

 

The FAR case concentrates on mandating that federal contractors disclose greenhouse gas emissions and climate-related financial risks associated with their supply chains. This regulation aims to promote sustainability throughout the federal government’s procurement process and encourage transparent climate reporting from suppliers.

 

To comply with the FAR and ensure eligibility for government contracts, businesses that receive federal contracts over $7.5m annually will be required to track and report Scope 1 and 2 emissions, while those who receive $50m+ annually will also have Scope 3 requirements. 

 

Why a Sustainability Platform is Crucial

 

As the regulatory environment surrounding carbon emissions and climate disclosures becomes more stringent, some manufacturers are getting ahead of the curve. With their emissions data logged and managed in the Glassdome cloud, they’re reducing administrative burden with a focus on 3 outcomes:

 

Product Environmental Footprints

The Glassdome Lifecycle Assessment (LCA) platform enables manufacturers to precisely measure their carbon footprints, identifying emission hot spots and potential regulatory risks. 

 

Organization-Wide GHG Emissions Inventory

With a comprehensive assessment platform, businesses can generate detailed reports on Scope 1, Scope 2, and even Scope 3 emissions by integrating data directly from suppliers.

 

Risk Mitigation and Strategy Development

By obtaining insight into climate-related risks, businesses can develop resilient strategies for transitioning to a low-carbon economy.  For example, EV battery-makers are using the Glassdome platform to compare suppliers’ emissions intensities – giving sustainable manufacturers a leg up on the competition.

 

Stay ahead of the curve and demonstrate to customers, investors, and regulators your commitment to sustainability.  Take the first step toward a compliant and sustainable future.

 

Contact us at [email protected] for more information on how Glassdome can help your business thrive in an era of stricter climate regulations

#CBAM#FAR#SEC
View More
슬라이드 이미지

News 2023.05.17

Glassdome Secures $8.6M Series A for Manufacturing Regulatory Platform, with EV Battery Focus

Portland, OR (May 17, 2023) - Glassdome, a software platform for industrial optimization and compliance, announced an $8.6M Series A to help manufacturers, including EV battery makers, improve efficiency and meet changing regulatory requirements. The announcement comes on the heels of the SEC's proposal to enhance GHG disclosures and new EU battery policies that call for stronger sustainability, recycling, and labeling. 

A member of the Global Battery Alliance, Glassdome has been working with major Korean EV battery makers and their upstream suppliers to acquire environmental footprint data in their supply chains. Korea accounts for almost one quarter of global EV battery production. 

Life cycle assessment (LCA), the method of calculating a product's environmental impact, traditionally relies heavily on tables of estimated industry averages. With its expertise in plant-floor data acquisition, Glassdome improves the real-time visibility and accuracy of LCAs by integrating actual Scope 3 emissions data from suppliers, sharing sensitive partner data securely. This information can be used to create a Digital Product Passport, an increasingly common regulatory requirement that informs consumers of the social and environmental impacts of a product's lifecycle. 

"Industrial software hasn't kept pace with consumer and office solutions," said Glassdome COO Joshua Charnin-Aker. "The new SEC proposal is estimated to increase US companies' paperwork burden by $10.2B per year. We want to help decrease that figure." 

Glassdome's other industry initiatives include pharmaceutical Data Integrity projects and recordkeeping for Good Manufacturing Practices. It partners with telecom giant LG U+ to power smart-factory solutions for all types of manufacturers. 

The Series A was led by Atinum, with participation from Primer Sazze Partners, Dunamu & Partners, Murex, and Korean conglomerate Lotte. Previous investors include Crit Ventures and Elon Musk's Neuralink cofounder Max Hodak.


 
#SeriesA#LCA#EVbattery
View More
슬라이드 이미지
#scope3#PCF#LCA#ESG#CBAM#manufacturing_operations#Mfg_ops#AI