BLOCKCHAIN regulatory oversight , some of those people may work under safety , environmental , and labour standards that are considered
“Companies are able to record the journeys of their products more accurately and more cheaply ”
DAVID SNEYD VICE PRESIDENT OF RESPONSIBLE INVESTMENT , BMO GLOBAL ASSET MANAGEMENT lacklustre - or even illegal - in developed nations . The problem is that it ’ s almost impossible to ensure that every stage of the supply chain is completely synced up on what working conditions can be considered acceptable . On top of that , there are crossborder differences that are increasingly difficult to regulate as global political tensions rise .
Through the use of blockchain technology , “ companies are able to record the journeys of their products more accurately and more cheaply ,” says Sneyd . “ With all suppliers invited into the network , every time a product changes hands within the supply chain , its precise location and time-stamp are documented by creating a new block , with the ledger creating a permanent history of every product from its manufacture through to its sale .
“ Given the number of suppliers involved , a centralised process would be cumbersome and would need to involve intermediaries to liaise between parties . However , with a blockchain network , each party is synchronised in the information it receives , with each transaction validated by other users on the network . Having an accurate record of where a product has come from and who has been involved can be invaluable for responding to product recalls or understanding the exposure from issues being found with a specific supplier ,” Sneyd adds .
So I suppose the answer is : Yes , blockchain technology could revolutionise ESG compliance across global supply chain networks . While it can ’ t solve every issue that the business world faces , it can certainly make inroads into ensuring that multinational corporations stay at the top of their game , make moves to eradicate exploitation , and establish fair , environmentally and socially responsible practices and norms . supplychaindigital . com 69