“CarbonChain builds necessary infrastructure for major carbon regulations that support the global net-zero transition like the EU CBAM, by enabling importers and producers to measure and report emissions for CBAM compliance,” Adam Hearne, CEO and Co-Founder, CarbonChain.

Adam Hearne is an expert on the commodity and manufacturing sectors’ transition to a net-zero economy. He is the CEO and co-founder of CarbonChain, providing automated, asset-level carbon accounting for most carbon-intensive supply chains. His career spans nearly two decades across supply chain management, extractive commodities, and technology start-ups. He was the senior program manager for 8 countries in Amazon’s European supply chain from 2016 to 2019, and he worked at Rio Tinto for 12 years, increasing the productivity of several other supply chains. Adam holds an MBA from London Business School and an honours degree from the Queensland University of Technology in Australia.

At CarbonChain, he helps some of the world’s biggest and most impact-minded commodity companies, traders, manufacturers, financiers, and logistics firms accelerate their climate action.

AL Circle: Given its crucial role in climate-critical sectors, how does CarbonChain help customers tackle emissions in the aluminium production process?

Adam Hearne: In the fight against climate change, today's aluminium players have a choice to make about their legacy. Business-as-usual or business-for-net-zero.

Demand is soaring; the world is set to consume 40% more aluminium by 2050. That is in no small part driven by industries like electric vehicles, which need the metal in their low-carbon transition solutions. But the aluminium sector is already responsible for 4% of global emissions, making it one of the most carbon-intensive materials.

So, what is the choice for aluminium producers and traders? They can either seize the growth opportunities without addressing their energy usage and emissions (business as usual) or firmly stake their claim in the low-carbon world through innovation and decarbonization (business for net zero).

But soon, the decision will be made for them, as regulation like the EU's Carbon Border Adjustment Mechanism (CBAM) cracks down on the industry's emissions and as market demand for emissions transparency and reductions rises.

Those who act quickest, including pioneers who are already collaborating with CarbonChain, will be most prepared for emerging green premiums and compliance pressures.

Specifically, our platform helps companies track emissions across the whole aluminium lifecycle to meet reporting needs and find ways to transition to cleaner suppliers and energy sources — including reducing the high scope 2 (electricity) emissions in aluminium production.

AL Circle: Can you discuss challenges and opportunities in tracking emissions in the aluminium supply chain, especially the hardest-to-track ones?

Adam Hearne: Companies often turn to CarbonChain when a procurement department asks them whether their product is high or low carbon. When you are a trader or a downstream manufacturer, once, twice, or thrice removed from the production processes of the input materials that make up your goods, where do you even start?

You could look for an industry average, but that is not what your customer is asking. They want to know how you compare to another supplier of the same product and what emissions are specifically embedded in your goods, be they aluminium sheets, coils, or primary metals.

The margin for error is large, as emissions intensity can vary between an estimated 3 and 20 tonnes of carbon dioxide equivalent per tonne of aluminium. The variation is principally due to diversity in electricity generation sources.

For example, aluminium produced using hydropower in regions like North America and Europe tends to have a lower emission intensity, whereas production in China and India often relies on coal power. However, manufacturers often do not know who or where their suppliers — or their suppliers’ suppliers — are, let alone their energy sources and emissions.

That is the challenge CarbonChain directly addresses. Using an independently verified and validated carbon accounting methodology, our technology helps companies navigate these complexities by providing detailed supply chain carbon data for hundreds of suppliers, otherwise difficult to access or incomplete or inaccurate. Companies can then make informed decisions and differentiate themselves by providing carbon footprints and sourcing lower-carbon materials that their competitors are not yet finding.

AL Circle: How does CarbonChain assist aluminium companies in managing and reducing their carbon footprint amid rising product demand?

Adam Hearne: Aluminium producers, traders and recyclers use CarbonChain to see in detail where their emissions lie across the supply chain, from mine to ship to factory and beyond. We offer a suite of solutions for their specific regulatory or business needs:

• Product carbon footprints
• Trade portfolio emissions reports
• CBAM reporting
• Target setting
• Trade finance decarbonization solutions

Without this level of accuracy and detail, companies cannot implement and validate effective strategies for decarbonizing their aluminium manufacturing or distribution.

It is not just about compliance with emerging regulations like the ISSB or the US Securities and Exchange Commission rules; it is about understanding the impact of every action, from switching to low-carbon vessels to collaborating with suppliers to source renewable energy. The role of accurate emissions data also extends beyond the manufacturing process to influence global policy and consumer choices. Footprint calculations like those provided by CarbonChain are becoming a linchpin for regulatory rewards and penalties that we are seeing in the global spread of carbon pricing.

AL Circle: As a carbon accounting leader, how does CarbonChain collaborate with stakeholders in the aluminium industry to raise environmental standards and drive meaningful sustainability changes?

Adam Hearne: Every day, we collaborate with stakeholders in the aluminium industry, not only by providing insights and tools to navigate the changing landscape of climate regulation but by helping standardise the measuring and accounting of emissions in the sector. We are proud members of both the Aluminium Federation (ALFED) and the Aluminium Stewardship Initiative (ASI).

Data alone is not enough, of course. Engagement and collaboration across the value chain is vital. It is the only way businesses can drive transparency and carbon reductions throughout their upstream and downstream supply chains.

Ultimately, CarbonChain helps companies pass the ambition test between business-as-usual and business-for-net-zero. As soon as the barrier of emissions tracking is removed, the road is wide open for aluminium professionals to shape their legacy and thrive in the low-carbon future.