Trafigura, a commodity trading company, and Circulor, a supply chain emissions tracking service, have signed a Master Services Agreement to provide blockchain-based traceability and CO2 tracking for Trafigura's nickel and cobalt trading division.

The parties will develop an innovative programme to dynamically track and attribute CO2 emissions throughout Trafigura's nickel and cobalt supply chain customers, particularly electric vehicle manufacturers.

Additionally, they will work with a range of upstream producers and downstream receivers to integrate and communicate responsible sourcing due diligence and CO2 tracking data into the respective value chains.

Jeremy Weir, executive chairman and chief executive officer, said the company had invested significantly in developing tools to identify and mitigate social and human rights risks and environmental impacts in commodity supply chains.

Weir described the agreement as "an important step in improving transparency" in commodity markets and cutting carbon emissions.

Douglas Johnson-Poensgen, founder and chief executive officer, said the deal would help it establish a new benchmark for responsible and sustainably sourced battery materials.