The CEO of Spanish blockchain software firm Finboot said that the corporates that advocate for Environmental, Social and Governance (ESG) responsibility initiatives should strive to adopt blockchain technology. His remarks were published on March 5th in a blog post.
According to Juan Miguel Perez, the Finboot CEO and co-founder, companies need to get quantitative metrics that verify their progress and validate what they say to communicate the achievements of ESG initiatives effectively. That is where the blockchain technology comes in.
However, the introduction of traceability in ESG policies is not straightforward, as it seems, according to the Finboot CEO. Such implementations are known to feature complex supply chains. Perez commented:
“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 is trustworthy
Perez believes that blockchain is an excellent technology for tracking industrial processes. It is perfect since it has managed to handle transparency and trust challenges that ESG initiatives encounter. He added:
“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.”
The global energy company Repsol became a perfect example of a company that is today implementing blockchain technology. It uses the technology to digitize part of their subsequent supply chain.
Finboot’s CEO also acknowledged that Repsol is using blockchain technology to track assets like polyethylene. They track them from production on to the plastic container that is manufactured.
Blockchain adoption prospects for 2021
In the issue of projection for this year, Perez anticipates that many blockchain applications will appear on the market, creating an efficient cohesion with the objectives pursued by ESG.