Corporates that advocate for Environmental, Social and Governance (ESG) responsibility initiatives should adopt blockchain technology, the CEO of Spanish blockchain software firm Finboot said on March 5th in a blog post.
According to Finboot CEO and co-founder Juan Miguel Perez, to communicate the achievements of ESG initiatives, companies must obtain quantitative metrics that verify their progress and authenticate what they say. That is where blockchain technology comes in.
But the introduction of traceability in ESG policies, says the Finboot CEO, is not as easy as they appear, as such implementation involves complicated supply chains.
The co-founder of the Spanish blockchain firm made the following statement:
“In the face of this significant challenge, embracing technology is crucial if businesses are to prove they’ve delivered on their initiatives. And which of the many digital technologies available should we look to when it comes to measuring sustainability goals? Blockchain.”
Blockchain as a trustworthy technology for ESG initiatives
Thanks to blockchain’s handling of the transparency and trust issues that ESG initiatives face, Perez says it is an “outstanding” technology for tracing industrial processes.
Perez adds the following:
“By using blockchain to verify transparency in a way that no other digital technology can, businesses will dramatically improve their sustainability credentials and reporting procedures.”
In the article, the global energy company Repsol became an example of a company currently implementing blockchain technology to digitize part of their subsequent supply chain.
According to Finboot’s CEO, thanks to blockchain, Repsol can track assets such as polyethylene from production on to the plastic container that is manufactured.
Blockchain adoption projections for 2020
As for projections for 2020, Perez expects many blockchain applications to appear on the market that will allow a cohesion with the objectives pursued by ESG.