 Good afternoon. I'm Conrad von der Winter. I'm CDO at Circular and we develop supply chain traceability software. So today I'll talk a little bit about the our traceability solution and how we are making use of hypolytic fabric as part of that platform. So to give an overview, so yeah illuminating double electric vehicle battery supply chains using hypolytic fabric. So these are complex global supply chains that underpin the critical minerals necessary to make electric vehicle batteries. These minerals come with a host of responsible and sustainable sourcing challenges to do including child labour, sanctioned countries, environmental damage and substantial and a substantial inherited carbon footprint. Traceability helps auto manufacturers to see into their supply chains, right to the source of the minerals so that they can drive improvement. The circular platform using hypolytic fabric and traditional databases bases is used to create supply chain traceability and digital product passports for electric vehicles and the platform is currently being used by numerous auto OEMs at scale to underpin the US EV tax credits as well as EU battery passports. So to sort of I'll explain a bit about the solution first and how we do the traceability and then go into the technology bit and see how we use blockchain and other technology components. So first we look at where the data is actually coming from and for traceability and CO2 emissions. So on the left there so this is tracking materials when from the mine site right through until it's an EV battery and then in that car. So on initially to digitize similar information we got a mobile app that can be used in the first mile so normally autism mine sites or areas where there isn't a lot of technology available already in order to register that item and start the created digital tournament and then started to track that physical material. The platform trace is tracking physical material throughout the supply chain so it's not running off purchase orders or just finance systems but it's looking at the real identifiers on the items and then tracking those as they move throughout the supply chain. So as we saw each one of these so process one two three four assembly and final product each one of these represent a unique organization that is involved in that part of the supply chain. So it might be a mining process one a refinery into and then getting more complicated as that raw materials are refined and eventually it goes into a battery that's manufactured and then that battery being put into a electric vehicle. So each one of these are set up as an entity on the platform and then we work with them and then for that entity we look at the data attributes that we need to capture as well as the their processes. So is it more just goods in and goods out that we need to track or is it a more high-risk area where we'd like to get multiple data points throughout the processing in order to evaluate if the data quality is good and there isn't any anomalies in there. So yeah in the first bit is like we got a mobile app but in the rest of the supply chain we normally find that it's very industrial already they already got IT systems available so we try to integrate well we try to make endpoints available for them to integrate into our system and not disrupt any of their current processes but just trying to reuse some of the data they already have and then feed that into our platform that can then with a set of business rules and rules engine can then link the data together and then also highlight any anomalies or any problems depending on the risk areas. Yeah so through this so for example we so yeah through this we can prove where the origin the way it's coming from the journey it's taken the logistics about it and we can also add the as we track the physical material we can also then use the apply the get the energy usage for a specific facility to attribute that to the materials to each one of the products so we can then depending where in the world the companies we can look at which CO2 factors need to be used and then we can apply those factors and determine the CO2 footprint for each one of the items that has been produced so it's not just a LCA that was done in general once every 12 or 18 months but it could be as not real time but as more frequently than that in order to show then in a final customer supply chain where the hot spots are and where the most polluting areas are that's contributing to their products yeah so in a platform there's so there's traceability and emission tracking data and dashboards available but then can show the final customer well each one of the participants in upstream from them in their supply chain where yeah all the data about the items which they are getting and then has that's flowing through to their customers as well so for example the origin of the raw materials the volume by region the flow of raw and recycled materials you can then model this in detail detect we also have a rules agent so we can determine if there's one ton of material arriving somewhere and that can produce 300 items we can then check that it always appears to that rule and then highlight if there's any problems with that so if there's any material input from unknown provenance so if a organization want to prove or want to check that in their supply chain if they buying recycled material and a supply claims there's either 100% or 20% recycled material that they can account for that recycled material actually coming from a recycler but there's proof throughout the supply chain and you just you don't just rely on a contract that might have been signed some time ago or you're just your tier one but if there isn't a recycler in that network then well there's a problem or if they don't have any proof of it so yeah we can also do we also do the co2 calculations then but in addition to traceability and co2 there's also a compliance module and esg module for organizations to be able to upload any regulatory documentation that we can then link to the products as well and to the final items so to see if they had the right certificate at a point in time when a certain item has been manufactured so by using all of that data then the traceability the co2 compliance esg we can then combine all that and create a digital product passport for specific items for which the organizations can then use as proof for batteries so for example for batteries so yeah well the platform then provides the the co2 esg and due diligence information so this is then creating a new sort of object that digital passport that got a lot that could be tracked throughout this life as well so if that for example if that battery is set in the car for five or ten years and then it degrades and but it's still so there's life events that could be added to that battery then so to track the whole history of it to check at the end of certain points in time if that battery is still viable for a second life for storage devices or if it then gets recycled they can then determine through the passport what's the certain materials that's inside of it what recycling processes to use or and also the value of that item depending on the amount of cobalt or whichever rare amount of minerals is in that specific battery this is also then promoting a more circular economy so that everything don't just at the end of it they you don't have any data about the battery and it's recycled by default but if if it could be reused in another industry to add to create value for that so that everything isn't just used once and then disposed of so the our main area we were looking at is for EV batteries but in the system we can also configure this for other industries like construction for organizations need to prove the green steel or recycled steel being used in construction projects and others this can be adapted for so the same as we can set up a for example a EU battery passport template which we can then extract the rare information out of the platform for the EU regulations we can set up a EV tax credit template for the US so that if they need to prove where in the world the material are coming from and it's not from more from friendly countries then in order to get the tax credits that can help them without proof as well yeah so this is just an example of the green steel so some of this data can then be made public publicly accessible for anyone to view but there's also security and selective disclosure part of this so if a recycler might have a need to see additional details that's not public or a order to can see all the details all that security is then built into the platform as well so that depending on your rights you only the relevant information is in this list right underneath at all so we have a so it's software as a service that is running on Oracle cloud at the moment so if I talk through the data flow here so on the left we have so you can access it via browser we have the mobile app mobile app that you can use to interact with it to capture data or look up information for the data already on the system but most of the data which we get on the platform are through RESTful APIs so again trying not to be intrusive to any existing systems but we make an API available agree with them the data format and the structure and the data fields we need for the platform share that with them and then they start to send us the data in as real-time as possible for us to accept that and start to stitch all those items together to do the calculations and validation yeah and we don't have any IoT devices on it yet but in the future we hope to have incorporate like smart meters for energy usage in order to get more real-time information for specific production lines when the items are being produced incorporating that so instead of a user having to enter the energy usage once a month that we can get that directly out of existing systems to be more reliable and more accurate yeah so this is then going into a Oracle database where we do most of the processing and there's a Tremio data lake attached to this and Tableau for a reporting solution then the then we have APIs that goes to the blockchain instances so we don't write because of the volume of data and the problem we're trying to solve we're not writing all of this data to the blockchain we only create a hash of the specific the relevant data write that hash as then proof of evidence or to ensure that the data has been tampered with and hasn't been changed we do have another client that we're currently working with and their data is they have a lot less data annually and for them they would like to have all their data in a blockchain because there's a but when we users should be able to access all the data for their products directly from watching it because that's lower volumes that will work but in in the like for example in the EV space we don't write all of that because that it just doesn't make sense we're not trying to use blockchain as a database we're just trying to use the benefits of the immutability where appropriate so the current blockchain instances are running on Oracle cloud as well so they have and it's Hyperledge Fabric so they got a blockchain as a service offering which we're making use of but that can be extended to customer we have one customer that's got a Hyperledge Fabric instance on premise that's connected to the cloud network where they get their data to but the customers could also set up their own Hyperledge Fabric nodes on other clouds to then link into this network uh the so the bottom there those application services so it's those are made applicable to the data we get from the mobile devices in order to because that's a high risk area to make sure where that's coming from and material don't come don't cross borders and all of a sudden you have a high volume of material just showing up in your supply chain but it's more responsible sourcing making sure um where it's coming from and some of these technologies just help aid us in evidence in that and then so on the right hand side uh just to show you sort of the bigger different modules that fit together we have the circular platform there's analytics uh the blockchain services and then we have the uh so we're trying to link into well customers normally link from their existing manufacturing systems into ours to supply the data um and then there's also third party blockchain instances that they can set up on premise or cloud as well and we have a customer that's then using some of that data to link their internal systems back to the blockchain to read some of that information to do other analytics or enhance the in-house offering so combining some of the traceability that data that we get and we receive throughout the supply chain to then some of their due diligence and um yeah other purposes that they don't need our primary system for so yeah this is private permissioned uh so only approved organizations are part of this network we don't write any personal identifiers or information to that most of the business rules and analysis are happening in the outside blockchain but because of the volumes that we need to process yeah and then we're using for the mobile device we use facial recognition just comparing when the user logs in comparing them to their profile image in order to make sure it's somebody has to share their pulse with because that's quite a high risk area but all of that stuff is only living in the database and can be removed when required yes that's do you guys have any questions or anything i can explain more or if you want to know so exactly we normally try and check what problem the company is trying to solve yeah blockchain isn't just syllable it's oh it's it makes things more complicated it doesn't make it easier um so we normally try to find out what's the problem what's the incentive of um uh deploying and implementing system like this so we can because the we use the blockchain but for the um immutability and only that evidence it could be you don't have to take it it could be switched off if you just want to do lightweight traceability or compliance checking and you don't you don't have a regulatory need or auditors or something like that that would like that either level of evidence or if they're not as public facing or don't depending on the industry so a lot yeah a lot of it is driven by regulation and evidence for e-regulations or e-v tax credits for example um it's it depends some some the other client would like to write stuff to the blockchain because of the items which they deal with because they're trying to grant counterfeiting and a place that they can really evidence it and for people to be able to look it up so sometimes there's the case but we don't know it's it depends on the use case if it will be more adopted yes so so we see this as a journey the like until we started to develop this there wasn't really any systems that can provide this level of transparency and visibility throughout the supply chain all the way upstream normally organizations trust what their tier one says and say okay well if anything else happened that's your problem if you say it's good we trust you but because of more scrutiny and regulations coming in organizations have become all responsible for their whole supply chain and we know because because this is a new area and industry there's always problems but just just by people knowing you're watching change their behavior already you don't have to watch or have to visit site you just tell them you're watching and so a lot of this is um displaying anomalies or out of bounds type of data it's not there's not a user sitting on the side hours a day to do stuff it's more for the monitoring and visibility of it so we see that as a journey that if we we we want to get companies on board in order to improve their practices and be more responsible and eliminate bad stuff happening if we just if we just don't look at the industry totally because like there's some stuff we won't touch or won't be part of but in general we look at this as journey for customers to first start to see where's the highest value of improvement or if you if you can see in your supply chain of 100 suppliers and multiple minerals where's the most highest here two values your most of the emissions coming from then they can start to focus on that area see what they can use there and that makes it better for everybody instead of let's fix this tomorrow it's more of a overtime exposing it as we learn more about technology try to get more integrated with smart devices more real time in order to slowly improve and then yeah try to make it better so we we're working with some of the mining companies and we're also looking at how we can help them improve their processes so for example do pay them as they provide the materials so that then so we we have a list of the users that can access the mobile app but in the future we want to extend that to register have a registration of all the everybody that's working on the site as well so we know this is the main person who's responsible who is his team of people so that when they bring the material that gets graded that they can get immediate mobile payment for that material as well currently there's a lot of not a lot of transparency in that area because they might have to bring the material it's way you're not sure how much you can trust that scale there's just different factors part of it so we're looking at if you can pay the people with mobile payments so they don't need any cash that's safer on the site they can more instant payment for it so it's but some of that data is not it's not shared further downstream it's looking at just solving or improving processes at that point and we so when like technology alone are not going to solve or prevent any fraud or any problems but the one person can can try to fake it or can create problems but we don't it's not so much about that one data point the thing is if we take all the data points together and we can track how many people have been on site what's the average amount of output that's produced by a mine site and then seeing all of a sudden there's a spike or an outlier then we can see well something has changed or for this season or this month it's not what it usually is highlight that to the downstream organization and then they can decide do they want to send in auditors to have a review or some due to check what's really going on there because that will affect that might affect their customers in three or four months when the material has gone through so it's looking at all that data in aggregation and trying to find the hotspots problems and see what how we can help improve yeah because there's also NGOs and other organizations normally involved on site and is then working with them to see what improvements give me a different source I think it's there's a number of like you have a number of angles there's the compliance and responsible sourcing so part of it for certain industries being able to show the manufacturing did not go through certain regions or certain countries because then there's a tax incentive other areas it's so to do with recycled materials as well companies claiming to use a lot of recycling so organization might when they sign a contract with the big company say we guarantee 30% recycled x in there and it's all done and because what we found is that the customer then says oh yeah it's all good let's just put the traceability in but we get so much recycled material from here once you start to you onboard them and look at it and you say okay well we get all the data but there's no recycled material in it we misconfigure it or and then it comes out that when the contract was signed it was valid but since then two levels away some of their suppliers have changed and they forgot to notify the customer that that has happened so until that contract gets renewed nobody's aware of that so the part of this is trying to have that near real-time information as material is going through and then account for it so if they do if if that if the supplier was sought out all of a sudden there won't be any data for them into the system anymore that will show up as a alert to say well this organization is is producing items but they don't we don't know where it's coming from so it's unknown problems then we can check is there another organization that we just need to add in order to complete that chain or where does so it depends where the different industries different purposes yeah so the one of the projects we're working on is currently a German battery passport project BMW K project and in there we look to open source some of the technology in order to make it more accessible and a more standardized way of providing the data for between different actors and it's more transparent and visible between them so not necessarily this one but there's other especially with the battery passport because there's a lot more providers and actors in that space especially with first life second life and aftermarket use cases we see there's there'll be we expect there to be a lot more solution providers in that space and that data need to live or be transacted between all of them so as part of that we're looking to open source some of the the code and the the models that's used for that thank you very much