Initiatives to accelerate climate action are hitting the same fundamental problem. Carbon accounting, digital product passports, ESG reporting — all struggle with access to primary data.
Inspired by the thinking of Nobel Prize winner Elinor Ostrom, a new paper on the Data Commons could hold the answer. Two of its co-authors, Felix Philip and Manuel Braun, explain.
You can think of the circular economy as a new operating system for companies and industries: one that lets them optimize for resource productivity, and describes how to transition towards sustainability. Establishing this operating system requires us to share climate-relevant data within and across value chains.
This can be a daunting task, fraught with concerns about data security and disclosing sensitive IP. Aligning on incentives is challenging, as is the lack of clear standards.
But if done right, sharing data can solve some very real problems – such as measuring Scope 3 emissions, implementing digital product passports, or improving supply chain traceability. And, in doing so, it can transform how we think about and manage material flows for the future.
Data Commons: reciprocity, openness and security
Drawing on the work of Nobel Prize winner Elinor Ostrom, a new paper presents the key characteristics of the Data Commons for Sustainability. “We invoke design principles of reciprocity, openness and security to address systemic challenges and data-sharing dilemmas” says Dr Manuel Braun. Appropriately, the paper, published by Sine Foundation, itself is a collaborative effort, with inputs from Deutsche Bank and TLGG Consulting as well as SYSTEMIQ.
German circular economy expert Prof Martin R. Stuchtey agrees on the critical role of data sharing in circularity, and is among those who welcome the new paper’s perspective: “The building blocks of Data Commons provide a powerful lens to facilitate this data exchange – and thereby allow to build new types of partnership among organizations to accelerate climate action.”
What can businesses do?
Realising the potential of Data Commons within a business’s digital strategy starts with a thorough look at the company’s value chain, its stakeholders and their approach to data. “Within your value chain, where do you as a company face information asymmetry?”, ask the authors. “Where would you need access to data from other companies to move to a more sustainable process?” The report cites the Carbon Transparency Initiative to show how industry actors, working together to develop solutions, can deliver results, even in very complex settings.
This kind of system change takes time and work. But the values and building blocks of Data Commons can enable the exchange of primary data. Secure and interoperable cross-industry standards can create circular supply chains, build new partnerships between organisations and accelerate their climate action agendas.
Manuel Braun is is a project director at SYSTEMIQ. He is an expert in the field of circular system change and business model innovation – working with tech-driven circular economy pioneers and investors. He is a lecturer at the Technical University of Munich.
Felix Philip is a project manager at SYSTEMIQ, passionate about the circular economy, data and traceability. He previously worked in academia, consulting and venture capital – always with a focus on sustainability, impact, and circular economy. Felix holds master’s in business, specializing in strategy and sustainability, and a PhD.
