How Mocoh uses CarbonChain to prepare for the energy transition
Case Study | Mocoh
The first step to managing GHG emissions and risks is to measure them. In 2021, Mocoh had little to no visibility of the carbon footprint or intensity of its oil and oil product trades, and requested CarbonChain’s support. Today, Mocoh tracks supply chain emissions from initial crude oil extraction to final product combustion, so it can identify reduction opportunities, tackle risk and share data transparently with stakeholders, while diversifying its trading portfolio.
As we operate in a region that faces enormous challenges in the energy transition, it’s critical to accurately quantify our carbon impact while shifting towards lower-carbon trade portfolios. CarbonChain drills into our entire upstream and downstream supply chain, providing trustworthy emissions calculations with a verified methodology.
Michael Hacking
Chief Executive Officer, Mocoh
The Client: Mocoh SA (Mocoh)
Headquartered in Geneva, Mocoh supplies essential energy and resources to its customers across the African continent. Providing reliable and transportable access to these necessary resources is the primary requirement for its customers to maintain their economies and move forward. Mocoh wants to operate at the frontier and help accelerate the transition to cleaner, lower-carbon fuels.
The Challenge: IDENTIFYING SUPPLY CHAIN EMISSIONS SOURCES
Mocoh wants to lead the way by publishing its first effort to identify sources of carbon emissions from across its supply chain.
Acknowledging that transparent information and partnering across all stakeholder groups is key to progressing in the complex energy transition, Mocoh knew that it first had to start measuring emissions from across its supply chain, in order to:
- Help inform regulators with data-led information;
- Understand the scale and structure of emissions in its products and transaction logistics, such as shipping;
- Identify opportunities to reduce carbon intensity;
- Proactively and transparently share data with stakeholders, unlocking opportunities to collaborate on emissions reduction opportunities.
This is just the beginning of the journey for Mocoh and there is work to be done to improve the accuracy of its information. Mocoh knows it does not have all the answers and recognises that transparency and collaborative partnerships are key to pursuing its goals.
In 2021, Mocoh began using CarbonChain — the trusted solution for commodity trade carbon accounting.
The Process MAPPING, MEASURING AND TRACKING
Step 1: Setting the boundary
Mocoh wanted to use CarbonChain to get supply chain GHG assessments of its entire crude oil and oil products trade portfolio for 2021, from cradle to grave.
Image: Typical cradle-to-grave supply chain for crude and oil products.
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Step 2: Data collection and mapping
Based on Mocoh’s raw supply chain and trade data, CarbonChain helped Mocoh map out the trade flow and identify all the steps of the supply chain.
Wherever possible, primary commodity origin information was used (this was the case for trades covering 71% of all of Mocoh’s traded oil products). Where primary information wasn’t available, CarbonChain’s team of experts analyzed the gaps and made reasonable assumptions to build out the material flow, in consultation with Mocoh, and conducted the assessment using a comprehensive independent emission factors database.
Step 3: Carbon footprint calculator
This information was uploaded to the CarbonChain platform, which calculated and presented:
- The total carbon footprint of their trading activities;
- The carbon intensity of every trade;
- Asset-level and activity-level emissions breakdowns.
Data visualizations provided Mocoh with actionable insights such as:
- Emissions hotspots within each supply chain;
- Carbon intensity comparisons across suppliers and assets;
- Highest vs lowest intensity trades;
- Ratings of vessels against the Poseidon Principles and Sea Cargo Charter;
- Emissions variation per type of activity, to visualize the emissions reduction potential.
The Results: DATA-LED INSIGHTS FOR AMBITION AND ACTION
CarbonChain’s platform shows areas that we can influence and provides granular data so we can identify lower-carbon suppliers or logistics options. The team helps us understand the reasons for emissions variations between assets, to inform our broader strategy and value chain collaboration.
Mike Shaw
Chief Operating Officer, Mocoh
By using CarbonChain's carbon accounting software, Mocoh has been able to:
- Inform its broader ESG strategy and roadmap with data-led insights about emissions reduction potential and areas of influence;
- Prepare for mandatory reporting and requests for disclosure;
- Assess the impact of new and changing regulations like the EU CBAM;
- Prepare to collaborate with suppliers, customers and trade finance providers on reducing carbon intensity.
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Going forwards, for the carbon accounting of Mocoh’s 2022 trades:
CarbonChain will work to integrate by API with Mocoh’s Allegro system, to enable even faster calculations and remove the data extraction burden;
As we diversify our wider commodities trading portfolio, CarbonChain helps us to be comprehensive, consistent and robust with our GHG assessments of our crude oil and oil products trades.
We hope to see growing transparency in the sector and consistency across traders in cradle-to-grave accounting, for better industry benchmarking and to uncover hidden carbon hotspots.
Michael Hacking
Chief Executive Officer, Mocoh