The convergence of consumer and industry concerns about the sustainability in the manufacturing and re-use of materials is spurring industries such as textiles, jewelry, and automotive to trace every step in the supply chain.
With consumers increasingly asking for products that are produced ethically and sustainably, it’s a unique opportunity for blockchain firms to respond to this market dynamic.
How
blockchain underpins transparency and traceability
There
are already many technologies that are well-advanced and available in the
market today—and have been available since the mid-90s—that play a role, for
example, the ability to put a nano-tracer inside textiles. However, with IoT
and AI, blockchain can drive more powerful applications to develop sustainable
practices in the industry.
Blockchain
is powering battery industry sustainability practices
One
example is the battery industry, where Everledger is one of 42 global
organizations that have agreed on guiding principles to ensure sustainable
practices. These companies make up what is known as the Global Battery
Alliance. Ensuring the sustainability of batteries is key since they are used
in the transportation and power industries and makeup 40% of global carbon
emissions annually.
This is
all part of a transformation to sourcing materials and leaping into the
circular economy—an ecosystem that reduces waste and promotes re-use and
recycling.
While
in the past industries have naturally relied upon natural resources, which are
all finite, they now focusing on how to re-use and repurpose parts. Lithium and
cobalt in batteries are a prime example.
What
does the future hold for supply chains?
A
combination of technologies will be adopted at scale across supply chains that
will enable transparency and sustainability.
Brands
and consumers together will cause a shift in what’s traced, what materials are
used, and what’s reported. This will create an entirely new industry based on
re-commerce (re-using and re-purposing materials). Government policy will also
play an important role.
Blockchain
will be one of the key technologies behind the change, powering a new way of
thinking about sustainability—and what really matters—in the not-so-distant
circular economy of tomorrow.
We
hope you have found this article informative and interesting. For more
information or queries contact us to know more about this technology.
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