Blockchain Technology: A Promising Solution for Achieving Digital Traceability of Circular Feedstock and Progression of a Circular Economy

Blockchain is a decentralised, distributed and shared digital database that is used to store transactions and track assets across a network of computers in a secure way so that records cannot be altered retroactively. Whenever an asset changes location or ownership, a new block of data is added to the irreversible chain, strengthening the verification of the previous blocks and building the distributed database that members of the network can totally trust. Blockchain can, for instance, be used for automatic payments, insurance claims, registration of property ownership, electoral processes and copywrite protection, while cryptocurrencies remain the most widespread application of the blockchain technology.

In the chemical industry, blockchain is increasingly praised as an enabler of the transition to a circular economy and sustainable innovation, since it allows to monitor operations across supply chain, track authenticity and origin of products, exchange trusted data about product properties and quality certifications, understand how customers use products and retrieve products at the end of their lifecycle.

SABIC leverages a blockchain-based platform to give visibility to sustainability attributes of products,  including certified recycled content

Tracking and tracing the journey of circular feedstock through the complex value chain with multiple stakeholders is a difficult task. While the existing systems are complex to operate, may contain information gaps and cannot always guarantee protection of sensitive and confidential information, SABIC and its partners are investigating the possibilities of the blockchain technology in supporting the end-to-end digital traceability of circular feedstock in packaging products.

The piloted blockchain platform provides an ecosystem accepted infrastructure to create a permanent history of feedstock transformation, exchange relevant information across the complex industrial ecosystem, and track materials and products along the value chain. With enhanced transparency throughout the products’ lifecycle, the platform can offer the potential for customers to know the exact origin of their materials, for consumers to make more informed decisions, products can be recycled more efficiently, and closed material loops can be built. The traceability platform can easily be extended to include other material attributes, such as sustainability metrics and Corporate Social Responsibility (CSR) data.

Eastman ensures traceability of its sustainable materials with the blockchain technology

Eastman provides another example of the blockchain-based technology being used to ensure comprehensive traceability of its sustainable materials. Eastman collaborates with SAP to deliver full traceability of Eastman Renew materials with certified recycled content through mass balance allocation. For its fiber products, traceability starts from their origins in the textile value chain and encompassing every stage of garment production. The blockchain technology presents a remarkable opportunity to revolutionise traceability and conveniently verify sustainability attributes of product offerings, which enables producers to showcase their commitment to sustainability objectives and empowers consumers to make more eco-conscious choices.

Thanks to its distinctive features, blockchain technology will continue to attract multiple stakeholders as a possible solution for sharing data relevant to products’ circularity and traceability across the value chain.

Associated SDG