Making a product sustainable is a complex task, as supply chains involve multiple parties with their own carbon footprints. New technologies, like blockchain, offer promising solutions to help shoppers identify low-impact products. Environmental, social, and governance (ESG) initiatives are crucial for companies but often miss the mark by only focusing on direct emissions. Companies must address indirect supply chain emissions, known as Scope 3 emissions, which account for a significant portion of their CO2 impact.
Blockchain is a secure digital record that can provide transparency and traceability for consumers to make informed, environmentally responsible buying decisions. With blockchain, customers can access data about a product’s carbon footprint, materials, and origins. Blockchain technology is also being used to track and verify sustainable sources of materials in industries such as automotive and food production.
Some companies have already started using blockchain to promote transparency in their supply chains. For example, Ford uses blockchain to track the cobalt in its electric vehicles, while Unilever ensures the sustainability of its palm oil sources. French retailer Carrefour allows consumers to access detailed information about product origins and transportation methods by scanning a QR code on product labels.
However, blockchain also has drawbacks. The traditional proof-of-work method used in many blockchains consumes a lot of energy, leading to criticism for its environmental impact. Alternative methods like proof-of-stake are being adopted to reduce energy consumption and emissions.
Consumers have the power to demand more transparency and sustainability from the products they buy. By choosing brands that offer clarity about their supply chains and advocating for the use of low-energy blockchain technologies, consumers can drive positive change in the industry. Additionally, supporting programs such as the digital product passport will encourage businesses to embrace transparency.
Zac Amos, the Features Editor at ReHack, is an expert in sustainable tech, AI, and cybersecurity. He is also a contributor at EE Power, e27, DZone, and more. You can find his newest articles on Twitter or LinkedIn.
