Two technologies in development by Good Purpose Investments Inc. (GPIN-CN) portfolio company Clario Environmental Intelligence aim to help businesses trace the origins of their products, verify supply chain sustainability claims and measure the energy used in manufacturing.

The first, Q-Trace, would be used to illuminate a company’s supply chain, supporting traceability with blockchain technology and meeting the European Union’s upcoming Digital Product Passport (DPP) regulation.

The second, Enerx, calculates the energy use that goes to making a product.

“It’s going to help them eliminate greenwashing,” George Tsogas, CEO of Good Purpose Investments, said about Q-Trace in an interview with Sustainable Biz Canada.

A 'strong need' for Clario's technology

Tsogas joined Good Purpose Investments as CEO in 2024 after spending most of his career in apparel supply chains, including 15 years at Lululemon. He said witnessing tonnes of clothing being buried or burned prompted his shift to the sustainability sector.

Good Purpose Investments takes an active role in the companies it invests in, helping set business strategies and support commercialization, Tsogas said. “We get involved, we use my skill set, my leadership team that I brought on."

Among its investments is Waste2Wear, a Dutch company transforming used plastic bottles and food containers into fabrics, shopping bags and backpacks.

Tsogas said Clario was developed in response to retailers seeking blockchain-backed supply chain traceability and better information about the energy required to manufacture their products.

Another pressure point was the upcoming DPP regulations in Europe. The DPP framework is intended to make information about products, including their materials, environmental impacts and compliance, accessible through digital records. Requirements will vary by product category.

“There is a strong need for this,” Tsogas said. “A lot of people want to offset their carbon footprint, they want to be able to understand how much energy goes into a single unit.”

Q-Trace and Enerx

To use Q-Trace and Enerx, it starts with the data, Eduardo Garza, vice-president of innovation at Clario, said in an interview with Sustainable Biz Canada.

Drawing upon sources such as suppliers and third-party verification systems, Enerx would take the data for production and renewable energy use if applicable, and lay out the energy use in manufacturing, Garza gave as an example.

Brands could measure how much energy is going into their production, Tsogas said, and use that information to develop offset plans for their carbon footprint or energy use. While not directly addressing carbon emissions, Tsogas said having a clearer picture of energy consumption can play an important part in understanding a company’s environmental impact.

Q-Trace would use product, material and supply chain data to create traceability records and digital product passports, allowing companies to track a product's journey from raw materials to finished goods.

The blockchain ledger could be examined to trace the feedstock’s origin, enabling verification and compliance with regulations, Tsogas said.

This, Garza said, gives “a full understanding of the journey of a product from raw material to finished product.”

Q-Tag and Vantage

Phased commercialization of Enerx and Q-Trace is expected to start in 2027.

Tsogas said companies have expressed interest in the technologies as they seek to better understand their environmental impacts and prepare for regulatory requirements.

Clario initially plans to target the textile industry, with a focus on customers in Asia, Europe and North America, Garza said. Q-Trace will be available by subscription to companies outside Good Purpose Investments' portfolio, Tsogas said.

Clario plans to develop additional modules, including Q-Tag, which is designed to authenticate products, and Vantage, which would help companies monitor environmental regulations and navigate complex compliance requirements, Garza said.