Introduction
Aurel facilitates a more collaborative and sustainable economy by enabling secure and reciprocal data exchange and turning it into value-creating opportunities. Treating data as a commons, his solution fosters a culture of transparency, collaboration, and accountability, supporting regulated entities and their value chains to achieve net zero carbon emissions and other central sustainability goals globally.
The New Idea
In the current economic climate, businesses are facing significant regulatory pressure from both the EU and the US to become more sustainable. This includes the decarbonization of production and supply chains. The regulatory pressure is only gradually being reflected in the implementation of improved measures, due to a lack of information. Aurel has understood that by using their regulatory obligations as a catalyst for collaboration, he can incentivize and unite even the most reluctant parties. Institutions will need to collaborate and exchange information with each other within and across supply chains to reach net zero carbon emissions and other central sustainability goals in the near future.
By bridging information design (a subfield of game theory and economics) and technology, he creates the necessary systemic architecture that fosters collaboration and moves the economy towards more sustainable practices. As an independent, trusted non-profit, he positions SINE as the systems orchestrator, reaching key players who adopt SINE’s standardized data exchange protocols for a unified and efficient (technical) language feeding into a data-driven operating system. This allows for reciprocal, secure, and encrypted but also transparent data sharing among multiple parties, changing the game of data sharing in economics. Aurel firmly believes that an economy that has regulatory pressure needs the necessary tools and incentives to share their data without compromising ownership to move towards becoming a collaborative and sustainable economy.
Through the alignment of his solutions with regulatory pressures like EU regulations on Scope 3 emissions, Aurel has found an efficient way for companies to adopt their standardized data-sharing protocols and governance model as part of their search for compliance. Scope 3 encompasses emissions that are not produced by the company itself and are not the result of activities from assets owned or controlled by them, but by those that are indirectly responsible for up and down its value chain. This positions SINE as a crucial enabler for businesses to meet new standards efficiently while reaching SINE’s bigger goal of changing the industry’s practices and mindsets around data management and ownership. With the adoption of SINE’s standards and framework, Aurel introduces another revolutionary element: By placing the needs and benefits of every participant at the forefront, it cultivates a collaborative environment where data sharing yields meaningful and equitable outcomes for all. SINE’s approach ensures fair participation from all stakeholders, whether small suppliers or large manufacturers, thereby democratizing access to sustainability benefits.
SINE fosters open-source ecosystems around its core technologies, encouraging diverse contributions and innovation from practitioners in the field. This democratizes access to cutting-edge tools and knowledge, fostering inclusive, collaborative environments for sustained self-correcting transformation in accordance with the needs of the system of data governance.
Creating an ecosystem around his innovations, Aurel also works with regulatory bodies like the European Union and the United Nations. These benefits from SINE’s work include gaining reliable information for better policymaking, such as carbon emission regulations, through standardized data sharing by companies. Through close partnerships with the World Business Council for Sustainable Development (WBCSD), SINE has positioned itself as a key orchestrator in carbon transparency, bringing together experts across technology, economics, and governance to create holistic, multi-perspective solutions. This approach has led to the adoption of SINE’s standardized data-sharing protocols by over half of the Fortune 500 companies, resulting in significant emission reductions, enhanced efficiency, and faster progress toward net-zero goals, with future plans to expand into areas like water usage and biodiversity impact measurements.
The Problem
Aurel sees the central obstacles to regulated entities meeting urgent sustainability regulations as the lack of collaboration and inefficient data exchange. Companies and other regulated entities often operate in silos, where data is fragmented and not easily accessible across departments, value chains, other organizations or industries. Historically, data has been treated as a private commodity, with companies viewing it as an asset to be guarded closely instead of data being treated as a commons. This proprietary nature of data limits its broader use and prevents the transformation of raw data into actionable information, leading to inefficiencies and wasted resources and prevents the development of collaborative data ecosystems that could drive innovation and sustainability.
The technological infrastructure required for efficient data sharing is often lacking, and there is cultural resistance to sharing data due to concerns about privacy, security, and competitive advantage. Companies are hesitant to share data, fearing loss of control and potential misuse. This cultural mindset is a significant barrier to creating a collaborative environment where data can be shared securely and transparently for mutual benefit. This is particularly problematic in sectors like agriculture and manufacturing, where supply chains are often complex and decentralized, making transparency and traceability challenging. This complexity hinders the ability to monitor and manage environmental impacts effectively, leading to continued environmental degradation and a failure to meet sustainability goals.
Adding to this challenge, companies face significant pressure from regulatory bodies, financial markets, and consumers to decarbonize their value chains, particularly focusing on Scope 3 emissions. The stringent sustainability reporting requirements often lack the necessary granular insights due to fragmented data streams, resulting in compliance challenges and potential penalties. The regulatory pressure, while necessary, is not accompanied by adequate support for companies to manage and share their data effectively, leading to inefficiencies and wasted resources. Sustainability efforts often rely on filling out surveys with non-standardized data, where various questions overlap but do not provide consistent or comparable data points. This fragmented approach limits the effectiveness and value of the information gathered. Regulatory bodies like the European Union, on the other hand, require stricter sustainability reports but they often don’t have detailed information to create effective policies because of scattered or missing data from companies.
This has, moreover, led to significant economic disparities. Companies with better access to data and resources can gain a competitive advantage, while smaller companies struggle to comply with regulatory requirements, and, particularly in global value chains, have a disadvantage in negotiations and partner selection. Smaller players are locked into rigid IT systems that perpetuate existing power dynamics, impeding them from switching technologies without significant penalties and creating an uneven playing field.
In sum, the broader societal benefits of data sharing, such as improved environmental outcomes, economic opportunities, and social equity, are not realized due to current data management practices based on the social construct of data being a private commodity instead of a common good. The inability to transform raw data into actionable information prevents society from fully benefiting from digital transformation and hinders progress toward sustainable development goals.
The Strategy
Aurel has understood that companies must adopt standardized data-sharing mechanisms and shift towards viewing data as a shared resource rather than a private asset. This transformation will not only enable better compliance with regulatory pressures but also foster innovation, collective action, and sustainable practices across industries. In 2020, Aurel founded the SINE Foundation, an organization that allows the sharing of trustworthy information and data. Due to its independence from corporates and regulators and its non-profit nature, it is best positioned to play the role of a trusted systems orchestrator, building the necessary infrastructure for transparent reciprocal data sharing.
For data exchange to be efficient and actionable, Aurel realized early on that an important baseline was missing in the system- standardized data protocols embedded in a strong governance framework that would allow entities to communicate in the same language (from a data perspective) and make data points comparable to then being converted into actionable valuable information. This sets the groundwork for reducing fragmentation in how companies and other regulated entities handle environmental metrics like carbon emissions. Aurel with SINE, therefore, focuses on creating lean standardization processes that allow quick adoption across industries while ensuring robust security measures through advanced encryption technologies like Secure Multi-Party Computation (SMPC).
For the development of the standards, Aurel has convened a working group consisting of the main IT providers and data users like Microsoft and Salesforce. The new language is based on the common API language- a communications mechanism that allows applications to communicate. It is built to exchange sensitive data for information without revealing the raw data- a cryptographic, secure multi-party computation protocol, that distributes a computation across multiple parties and verifies variations in patterns to enable comparability. Simply illustrated, variations could be the distinction between the emissions of a plate of spaghetti with and those without meatballs. This allows for the detection of commonalities in the parties’ data for benchmarking as well as abnormalities in the data shared- an important new element to ensure each party’s accountability over their own data sets. If, for instance, a production company were to leave out the logistics emissions from the product calculations, this would be detected by the system as not comparable to emissions calculated for a competitor’s product.
To ensure a fast adoption of the standardization, Aurel uses the momentum and high regulatory pressure on companies of Scope 3 carbon emissions reporting. Through close collaborations with partners like the World Business Council for Sustainable Development (WBCSD), SINE has facilitated connections with decision-makers from the largest global corporations. This has led to over half of the Fortune 500 companies adopting the standardized data sharing protocols, uniquely positioning SINE as a systemic orchestrator in the field of carbon transparency and paving the way for additional sustainability areas like water usage and biodiversity impact measurements. For regulatory bodies like the European Union or the United Nations to inform more effective policymaking, they receive the necessary reliable information through standardized data-sharing protocols and actionable information across supply chains and industries, tackling the former scattered or missing data from companies.
While Aurel considers standardizing protocols a central steppingstone for his vision to materialize, he aims at anchoring its continuous adaptation and expansion in the system through the adoption by quasi-standard-setting bodies such as the WBCSD, co-conveners of the Greenhouse Gas Protocols and other global communities (e.g., Global Coffee Platform, Smart Freight Center).
Once sufficient data-sharing pipelines are built through the adoption of large numbers of regulated entities, the operating system or data commons framework can fully unfold its potential in the economic system, creating an irreversible system change. For this, Aurel and his team have built a data commons framework that has already shown its impact potential in the Scope 3 emissions reporting system. It will serve as a blueprint for any type of data exchange that is openly accessible to everyone, and it will also serve future expansions of SINE to other sustainability areas like water usage and biodiversity.
Aurel’s innovative data commons framework draws inspiration from game theory, particularly the work of Elinor Ostrom. Ostrom’s research demonstrated that when users jointly manage natural resources, they eventually develop rules for their sustainable economic and ecological use. This approach challenges the long-held belief among economists that collectively used resources are inevitably over-exploited and destroyed. A key design principle of the framework is the reciprocity in data sharing and the inclusion of all value chain stakeholders. This means ensuring that the most vulnerable participants in a value chain, such as smallholder farmers in the coffee industry, benefit from the shared data. For instance, farmers can use a decentralized logistics system that provides them with valuable insights and support. When data suppliers have a vested interest in the accuracy and relevance of the data, they are motivated to ensure it is of excellent quality rather than the bare minimum, promoting a system where the data quality is inherently high. This shared interest among all users in the value chain enhances the overall utility and trustworthiness of the data.
To achieve this, SINE first identifies the common purpose and interests of all stakeholders, addressing their collective problems as a unified group. By prioritizing the needs and benefits of every participant, SINE creates a collaborative environment where data sharing leads to meaningful and equitable outcomes for everyone involved.
Another important design principle of the data commons framework is the security value of the sensitive raw data being shared. Traditionally, users faced a binary choice: use platforms like Facebook and sacrifice privacy or avoid these platforms entirely. However, SINE’s approach offers a third way, emphasizing an open network rather than open data. This means users can freely join or leave the network, a concept known as "voting with your feet," with minimal cost or disruption. For smaller actors, this flexibility is crucial. Unlike being locked into rigid IT systems that perpetuate existing power dynamics, they can choose and switch technologies without significant penalties. This freedom ensures that platforms must prioritize user-friendliness and adaptability to retain participants. In the realm of sustainability reporting, this approach levels the playing field. Small firms can navigate between different systems, ensuring their information remains portable. This portability forces platforms to improve continuously, ensuring they cater to the needs of all users, large and small. As a result, smaller actors are empowered, fostering a more equitable and dynamic data-sharing ecosystem.
Based on the principles above, SINE’s framework is composed of essential building blocks that ensure fair and effective data sharing. First, it establishes clear group boundaries, defining who is part of the group and the purpose of their collaboration, which builds credibility without compromising identity. It ensures that no participant can freeride; everyone must contribute, preventing larger companies from exploiting the system by demanding data without offering value in return. Appropriation rights are clearly outlined, detailing the permissible questions and potential benefits, which ensures transparent and meaningful exchanges. Monitoring is a key component, with robust data verification processes in place to maintain high-quality information. Sanctions are established for incorrect data, ensuring accountability. Additionally, the framework includes conflict resolution mechanisms to address disputes between parties. This comprehensive approach makes the framework valuable for nearly all data exchange use cases, fostering a secure, equitable, and efficient environment for data sharing.
Aurel moreover focuses on trust-based interdisciplinary convening by bringing together experts from various fields such as technology, economics, and governance in his own team constellation as well as all projects that lead to the development of a piece of the system’s infrastructure. This approach ensures that solutions are holistic and consider multiple perspectives.
A significant success for SINE in its few years of existence has been the adoption of the standardized protocols of more than half of the Fortune 500 companies. According to a recent MIT study, the savings potential of logistics carbon emissions for companies collaborating and exchanging basic information across their value chains is up to 23%. Companies using SINE’s tools have reported significant positive changes since implementing the data exchange standard, including savings in logistics emissions, improved efficiency, and enhanced collaboration across supply chains. This standardized data sharing has led to better decision-making processes regarding environmental impact. Firms using this standard are on track to achieve their net zero goals faster and at much lower costs than those that do not. Additionally, participating companies have begun integrating biodiversity factors into their operations, leveraging satellite technology and AI for monitoring. Having a foot in their doors paves the way for SINE to dive into additional sustainability areas like water usage and biodiversity impact measurements.
Aurel’s overarching objective is to establish the SINE framework as the global standard for sustainability data exchange, like the standards that underpin the internet as we know it today. On this foundation, innovation and collective action can flourish, leading to a more collaborative sustainable economy. In this model, all regulated entities that produce negative externalities and their global supply chains exchange relevant data with each other to reduce their footprint to net zero in 10 years.
The Person
Aurel grew up in a small village in Bavaria, influenced by his politically active parents from the Alt-68er movement. His mother, a strong advocate for abortion rights, participated in the women’s movement, while his father supported (and is still supporting) a young refugee and engaged in the Stolperstein project. These experiences instilled a strong sense of social responsibility in Aurel.
During his school years, Aurel balanced academics and athletics, organizing sports tournaments and volunteering as a volleyball coach. At 19, he pursued a mathematics degree in Regensburg, where he met his wife. In 2011, Aurel moved to Berlin, immersing himself in the startup ecosystem with a focus on big data and mobile data. As one of the first employees at a mobile tech startup, he started as COO/CFO and helped the company grow to more than 500 employees globally. This experience, coupled with an MBA, deepened his understanding of business.
The political climate, marked by Brexit and Trump’s election, spurred Aurel’s involvement with the left party. He advocated for a balanced approach to wealth distribution, emphasizing the need for a healthy economy to achieve social goals. He founded the party’s first working group on economics, engaging in dialogues about market roles and government intervention. Concerned about data monopolies by platforms like Uber, Facebook, and Google, Aurel recognized the importance of accessible data for AI development.
After nine years in the startup scene, Aurel pursued a Ph.D. in Information Design, a subfield of game theory, to bridge academic research with practical applications. His professional and personal experiences shaped his concern for digital inequality and the underutilization of digital advancements. His time in Berlin’s startup scene highlighted disparities in digital access, and his academic research on information design and cryptography reinforced the potential for secure, democratized data access. His upbringing and career converged, fueling his desire to address the digital divide and ensure digital benefits reach everyone.
This commitment crystallized during his doctoral research, recognizing the societal impact of applying academic insights to practical solutions. Meeting his future co-founder Martin, who shared his interest in cryptographic methods, solidified this resolve. Together, they saw an opportunity to leverage their expertise to create a non-profit organization focused on inclusive digital benefits. Aurel’s background in startups and information design provided a strong foundation for this venture, driven by his lifelong commitment to social responsibility. In 2020, Aurel founded the SINE Foundation, a non-profit aimed at fostering trust in data sharing.