Over the past few years, many large corporations in various industries have been embracing sustainability. Recognizing its growing importance to their customers and investors, they also use sustainability to cut costs and improve competitiveness.
Sustainability issues in the food and beverage industry
n the food and beverage sector, companies have been struggling with various sustainability challenges, from poor labor practices in supply chains to the excessive use of water and pesticides. Now industry leaders like Nestle are looking to blockchain technology to help them improve the sustainability of their operations. It comes as no surprise, since blockhain’s unique attributes make it a perfect fit for supply chain management challenges and help to enhance transparency, traceability, and accountability, increasing efficiency and preventing fraud.
What Nestle is doing with blockchain
Thanks to blockchain technology, Nestle will allow its customers to track products throughout its supply chains, offering them independently verifiable information and the transparency they seek. The food and beverage giant is collaborating with OpenSC – a blockchain platform that allows consumers to track their food all the way to the farm. The pilot program will first trace milk from farms in New Zealand to the company’s factories and warehouses in the Middle East. Palm oil – one of the most ubiquitous products on our supermarket shelves but also the most controversial will be traced next.
What’s been done in the past
Nestle is not new to blockchain technology. The company has been using blockchain since 2017, when it joined the IBM Food Trust as a founding member. In April 2019, Nestle and Carrefour announced that they were giving consumers access to blockchain data for Mousline puree in France, creating a precedent for sharing product information with consumers via the blockchain platform. Scanning QR code on the puree packaging allows consumers to follow the product from Nestle factories to Carrefour stores. The data they see includes dates, storage times, warehouse locations, and quality control parameters. Consumers also get to know farmers who grow potatoes for the puree and learn how puree is made.
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Why this is important
Organizations in many industries are scaling up their sustainability efforts, while also jumping into the blockchain space. In the future, we expect to see more blockchain-based sustainability initiatives from organizations seeking transparency in their supply chains, with a particular focus on controversial issues and products, such as palm oil.
