As consumer behaviors shift towards greener and more sustainable products due to climate change awareness, companies are increasingly looking to integrate a more sustainable approach to their businesses. Market-leaders such as Nike, Adidas, H&M & Amazon are already placing sustainability at the forefront of their global product and marketing strategies.
To help companies digitalize and increase efficiency for sustainable business practices, VeChain, the leading enterprise friendly blockchain platform, officially launches its Blockchain-enabled Sustainability Solution. The solution is built on its one-stop data Blockchain-as-a-Service (BaaS) platform VeChain ToolChain™.
BlockChain + Sustainability: Ensuring Trustworthy Long-term Efficiency & Profitability For Brands
Research by The World Economic Forum has shown that the risks for companies will grow due to both the direct impact of climate change on business operations and supply chains. There have been corresponding demands for transparency on sustainable activities, with financial regulators, policymakers proposing mandatory climate risk disclosure legislation, and litigation against companies failing to disclose climate risk.
In the meantime, the majority of customers are demanding more sustainable products from brands, showing strong willingness to change their purchasing habits to help reduce negative impact to the environment, especially among Generation Z. These customers are also inclined to buy products that have a clearly defined sustainability policy.
VeChain’s Blockchain-enabled Sustainability Solution centers on building a value-driven approach for businesses to streamline sustainable practices during the supply chain and manufacturing process. Blockchain technology allows businesses to reliably and accurately showcase their sustainable practices not only to consumers, but financial regulators and policymakers.
Value Propositions of VeChain ToolChain™ On Sustainability
The VeChain Blockchain-enabled Sustainability Solution is built on VeChain’s Blockchain-as-a-Service (BaaS) platform VeChain ToolChain™. VeChain ToolChain™ is characterized by its high standardization, light cost and flexible payment in the market, and is easily implemented by businesses in every sector.
Most importantly, VeChain ToolChain™ also offers customizable tools and whitelabel services, where companies can implement their Sustainability Service for their own clients. The main value propositions of VeChain ToolChain™ in the sustainable sector includes:
- Immutable Proof for Green Supply Chain
The VeChain Blockchain-enabled Sustainability Solution provides enterprises effective sustainable practices with proven templates for blockchain data processing that cover key stages such as recycling, processing, reusing, inspection and more. Brands and retailers will be able to better trace the original source of their goods across the globe, ensuring that their products have been sourced lawfully, responsibly, and environmentally.
- Transparency and Consistency of Information
The solution ensures that all data will be trustworthy, immutable, and consistent across different counterparties in the supply chain. This reduces friction generated from discrepant or lost information, and enhances open collaborations in an efficient and cost-effective way.
- Trust and Confidence between Consumers and Brands
The added transparency by blockchain could help re-engineer all sustainable processes entirely by combining digital based services with field activities. Brands can demonstrate sustainable initiatives to the public or reporting to the regulators, and therefore, enhancing trust and brand image.
- New Business Value by Accessing Professional Services
Sustainable initiative data collected across supply chains or daily operations by VeChain ToolChain™ can help companies to lower the cost of public reporting service for government regulation, sustainable rating service for green brand image, and attestation service for responsible financing (green bonds, government financial subsidies, equity investors). Companies will also gain access to world leading third-party services through the VeChain global partner network, including DNV GL, PwC, Deloitte, Grant Thornton, and more, greatly reducing the cost of certification, audit, insurance or supply chain financial services.
As the world’s leading enterprise-friendly blockchain platform, VeChain shares the vision with enterprises to a future of green business, and has accumulated know-how and refined technology in proven cases in numerous business sectors. Joining hands with its strategic partners such as PwC and DNV GL, VeChain aims to bring blockchain technology to businesses in every sector.