Companies championing environmental, social and governance (ESG) initiatives are expected to adopt blockchain technology, CEO of Spanish blockchain software company Finboot said on March 5 in a blog.
According to Finboot CEO and co-founder Juan Miguel Perez, to communicate the achievements of ESG initiatives, companies need to get quantitative metrics that check their progress and authenticate what they say. This is where blockchain technology comes in.
But introducing traceability into ESG policies, says the CEO of Finboot, is not as simple as it seems, as such implementation involves complex supply chains.
The co-founder of the Spanish blockchain company made the following statement:
“Faced with this daunting challenge, the adoption of technology is crucial if companies have to prove that they have put their initiatives into action. And which of the many available digital technologies should we consider to measure sustainability goals? Blockchain. “
Blockchain as a reliable technology for ESG initiatives
Through blockchain management of the transparency and trust issues facing ESG initiatives, Perez says it is an “exceptional” technology for tracking industrial processes.
Perez adds the following:
“By using blockchain to verify transparency in a way that no other digital technology can, companies will significantly improve their credentials and sustainability reporting procedures.”
In this article, the global energy company Repsol has become an example of a company that is currently implementing blockchain technology to digitize part of its subsequent supply chain.
According to the CEO of Finboot, thanks to the blockchain, Repsol can track assets such as polyethylene from production to the plastic container that is manufactured.
Blockchain adoption projections for 2020
As for the projections for 2020, Perez expects that many blockchain applications will appear on the market that will allow cohesion with the objectives pursued by ESG.