ESG responsibility has emerged as a crucial business priority and is now a prominent topic discussed at high-profile events like the World Economic Forum. Different organizations perceive ESG in various ways, whether as a business strategy, self-regulatory initiative, or marketing approach. However, it is clear that achieving positive ESG outcomes is highly beneficial for society. To effectively communicate ESG progress, companies need quantifiable metrics and reliable validation. With increasing scrutiny from regulators and socially conscious consumers, setting goals alone is insufficient.
Blockchain technology can play a vital role in introducing traceability to ESG policies, especially in complex supply chains across different regions. Blockchain’s inherent transparency, trust, immutability, and ability to represent assets digitally along value and supply chains make it an ideal solution for enhancing sustainability reporting and credentials.
Repsol, a global energy company, is already leveraging blockchain to digitise its downstream supply chain, enabling the tracking and certification of physical resources throughout the production process. Blockchain offers numerous opportunities beyond the petrochemical sector, such as tracking the environmental and social impact of value chains in industries like sustainable fashion.
The ability to measure and trace assets aligns with ESG objectives and can provide evidence of their achievement. The potential of blockchain in supporting sustainability is vast, and as ESG requirements evolve, we can expect to witness further blockchain applications in the future. The relationship between blockchain and sustainability continues to grow and strengthen.
