Research Project Complete
Research Project Complete
Shwetanshu waghmare
(31241354)
Submitted to
Abstract
This chapter explores how blockchain technology is revolutionizing sustainable supply chain
practices by fostering a more open, responsible, and reliable global trade ecosystem.
Organizations are under more and more pressure to maintain social responsibility and
environmental responsibility as supply chains continue to expand in size, complexity, and
globalization. The degree of visibility and accuracy required to confirm adherence to
sustainability objectives is frequently beyond the scope of traditional supply chain models,
especially when it comes to waste reduction, fair labor certifications, and carbon
measurement. In light of this, blockchain appears as a technology that has the potential to
change the way supply chain operations are tracked, recorded, and managed. The main
goals of this chapter are twofold: Initially, to offer a comprehensive understanding of how
blockchain functions as an enabler of sustainable supply chains; and second, to identify the
ways in which blockchain-driven practices can reconcile sustainability objectives with
economic efficiency.
The chapter situates these technological dimensions within critical application areas across
sourcing, production, inventory, and distribution. For example, responsible sourcing has long
been plagued by challenges of verifying the origin and authenticity of raw materials such as
minerals, textiles, or agricultural products. Blockchain-powered systems offer the ability to
record detailed provenance information, reducing the risk of conflict resources, counterfeit
products, or unsustainably harvested goods entering the market. Within production,
blockchain systems can document adherence to energy efficiency standards and confirm
compliance with emissions regulations. Inventory management benefits from blockchain by
reducing redundancy, preventing waste, and enabling circular economy practices, such as
product reuse and recycling. Similarly, within distribution, blockchain enhances logistical
coordination while ensuring that carbon emissions from transport are accurately tracked and
linked to sustainable performance targets.
Specific use-cases substantiate blockchain’s tangible value for sustainability. One prominent
application seems to be carbon tracking, where blockchain provides a verifiable and
auditable record of greenhouse gas emissions across production and delivery stages. This
potentially prevents “greenwashing,” ensuring that corporate claims of eco-friendly practices
are backed by unchangeable data. Another important application centers on verifying ethical
labor practices, particularly in supply chains that traverse regions vulnerable to labor
exploitation. Through blockchain, certifications of fair trade, decent working conditions, and
human rights compliance can be securely logged and trusted by consumers, regulators, and
advocacy groups. Additionally, blockchain streamlines administrative functions by digitizing
transaction records, certificates, and compliance audits, drastically reducing the need for
paper-based documentation. In doing so, the technology not only increases efficiency but
also reduces resource consumption associated with traditional reporting systems.
The chapter also points out several case studies that provide concrete evidence of
blockchain’s emerging role in reshaping sustainability practices within global trade. Across
sectors ranging from agriculture and food systems to textiles, consumer goods, and mining,
early adopters report improvements in traceability, reduced disputes over product
authenticity, and measurable compliance with sustainability metrics. For instance,
blockchain pilots in the food industry have reduced the time needed to trace contaminated
products from weeks to minutes, thereby minimizing health risks and food waste. Similarly,
in fashion supply chains, blockchain applications have helped consumers track clothing items
back to their raw cotton source, demonstrating accountability for sustainable farming
practices and ethical production. These case studies show that blockchain solutions not only
create operational efficiencies but also serve as a reputational asset for companies striving
to prove commitment to corporate social responsibility (CSR) goals.
At the same time, the chapter addresses the duality of opportunities and challenges
inherent in blockchain adoption. While the benefits are strong—greater transparency,
reduced discrepancies, increased customer trust, and improved operational efficiency—
numerous challenges remain. Technical issues such as scalability, interoperability between
different platforms, energy consumption of blockchain systems, and integration with legacy
supply chain software pose formidable barriers. Organizational challenges include resistance
to information sharing, coordination issues among supply chain partners, and the costs of
technological deployment in developing regions. Moreover, regulatory uncertainty around
blockchain usage and data governance continues to hinder large-scale diffusion. These
constraints highlight the need for measured optimism: blockchain holds potential, but its
application in sustainable supply chains requires strategic planning, stakeholder
collaboration, and supportive governance frameworks.
The structure of the chapter seems to be designed to guide readers through a balanced yet
forward-looking analysis. The introduction sets the stage by linking the global push for
sustainability with the digital transformation of supply chains. This is followed by a
comprehensive literature review, which synthesizes academic debates, policy documents,
and industry reports on blockchain and sustainable supply chain management. A dedicated
section on case studies anchors theoretical insights in practical contexts, providing evidence
of both realized gains and persistent limitations. The subsequent section on benefits and
challenges offers a nuanced evaluation, highlighting factors that enhance or inhibit adoption.
Finally, the chapter closes with a discussion of future research directions, underscoring the
need for interdisciplinary inquiry that spans technology, environmental science, social
equity, and economics.
Emerging avenues for future research include exploring how blockchain can be integrated
with artificial intelligence, big data analytics, and IoT to create intelligent, adaptive supply
chain ecosystems that are both efficient and sustainable. Another promseems to being
direction is examining how blockchain may facilitate new business models, such as product-
as-a-service systems or material passports, which underpin circular economy ideals.
Additionally, research into blockchain’s scalability in developing nations, particularly in
agriculture and manufacturing, is vital to ensuring inclusive benefits rather than
exacerbating digital divides.
In sum, this study provides both a conceptual and evidence-based exploration of how
blockchain can catalyze a shift toward sustainable and responsible supply chains. It positions
blockchain not merely as a technological innovation but as an enabler of systemic
transformation toward environmental stewardship, social accountability, and long-term
economic resilience. By analyzing blockchain capabilities, applications, case evidence, and
theoretical frameworks, the chapter invites a critical yet hopeful engagement with
blockchain as a cornerstone technology for the sustainable supply chains of the future.
2. Introduction
However, conventional supply chains are plagued by fragmentation, data silos, and
inefficiencies that make verifying sustainability claims difficult. Information asymmetries
often allow unethical practices, such as false reporting of emissions, counterfeit
certifications, or hidden use of child labor, to persist undetected. Traditional auditing and
certification processes, while useful, are often costly, slow, and vulnerable to manipulation.
Moreover, the opacity inherent in conventional systems stands at odds with the demand for
transparency from consumers, investors, regulators, and non-governmental organizations
(NGOs).
The urgency of adopting such innovations seems to be underscored by rising regulatory and
societal pressures. Governments worldwide are enforcing stricter carbon reporting
obligations, mandating corporate disclosure of sustainability strategies, and penalizing
greenwashing. At the same time, sustainability-conscious consumers are increasingly
choosing brands that provide transparent evidence of responsible sourcing and ethical
production. Against this backdrop, integrating blockchain into supply chain management
offers not just a technological upgrade but a potential major change toward accountability,
traceability, and stakeholder trust.
Technical and operational complexities also stand in the way. Implementing blockchain
requires both substantial technological infrastructure and skilled human capital, which
smaller suppliers—particularly in developing regions—may lack. Onboarding all participants
onto a single system often proves prohibitively expensive for small and medium-sized
enterprises (SMEs) that form critical links in supply chains. Privacy concerns further
complicate adoption, as blockchain’s transparency can lead to exposure of sensitive business
information, compromising competitive advantage.
Given these gaps, the chapter pursues several objectives aimed at bridging the divide
between blockchain’s potential and its practical deployment for sustainable supply chains.
The first seems to be to systematically explore how blockchain fosters traceability,
transparency, and accountability—values that directly address the shortcomings of
conventional supply chain models. The discussion will delve into blockchain’s technical
features—immutability, decentralization, and smart contracts—and connect them to specific
sustainability outcomes, such as ethical sourcing verification, carbon footprint tracking, and
circular economy applications.
A third objective seems to be to critically engage with the challenges and limitations of
blockchain adoption, providing a balanced view of technological, organizational, and
regulatory barriers. By outlining the constraints, the chapter points out that blockchain
should not be romanticized as a panacea, but rather carefully considered as part of a
broader suite of supply chain innovations.
Finally, the chapter aims to provide practical recommendations and highlight future research
avenues. This includes strategies for addressing scalability, interoperability, and inclusivity
challenges, as well as identifying areas where empirical research can substantiate
blockchain’s impact on sustainability outcomes. By combining theoretical depth, real-world
case evidence, and forward-looking insights, the chapter aspires to serve both academics
and practitioners navigating the evolving landscape of sustainable supply chain
management.
The third section presents case studies drawn from multiple industries, demonstrating
blockchain’s practical implementation and evaluating its effectiveness in promoting
sustainability. These cases serve as empirical anchors, offering insights into how blockchain
seems to be being tested and adapted across different contexts.
Subsequently, the chapter devotes a section to discussing benefits and challenges. This dual
focus ensures a balanced perspective—acknowledging blockchain’s transformative potential
while addressing the practical hurdles organizations face during adoption.
The chapter then explores future directions for research and practice, outlining promising
avenues such as integrating blockchain with IoT and artificial intelligence, developing
international interoperability standards, and scaling adoption to support SMEs.
Finally, the chapter concludes with key insights and research suggestions, synthesizing
findings and proposing steps forward to better harness blockchain’s potential for creating
sustainable, transparent, and resilient supply chains.
3. Literature Review
Such contributions align with Sahoo (2022), who highlights blockchain’s significant role in
regulatory compliance across industries. His review stresses that transparency and efficiency
are not abstract benefits; they translate directly into reduced costs of compliance, smoother
regulatory oversight, and prevention of fraudulent reporting. Together, these studies provide
a cohesive picture of blockchain’s practical benefits in terms of accountability and efficiency,
spanning multiple sectors.
Blockchain and Sustainability Dimensions
Beyond operational efficiency, literature increasingly links blockchain to the triple bottom
line of sustainability: economic, environmental, and social performance. Difrancesco (2022),
in a detailed exploration of blockchain in sustainable supply chains, points out how the
technology enhances integrity and trust in data exchanges. By rooting verification processes
in unchangeable digital ledgers, blockchain removes reliance on third-party intermediaries,
thereby democratizing information availability. Thseems to be shift is particularly significant
in sustainability reporting, where credibility often suffers from accusations of greenwashing.
Difrancesco demonstrates how blockchain increases confidence in reported sustainability
metrics by providing auditable, tamper-proof records.
Furthermore, Mulligan (2024) offers a systematic literature review that explicitly connects
blockchain to environmental, social, and governance (ESG) imperatives. Her analysis reveals
that blockchain supports enhanced ESG compliance by delivering reliable data trails for
external auditors, regulators, and stakeholders. Importantly, this strand of scholarship not
only highlights economic efficiency but also links blockchain directly to governance and
policy areas. Blockchain’s unchangeable nature ensures robustness against manipulation,
particularly valuable for policymakers combating fraudulent emissions reporting or false
sustainability certifications.
Several scholars have also addressed blockchain’s impact across varying geographies and
industry contexts. Oriekhoe (2024) provides a comprehensive review with emphasseems to
be on Asia and Europe, regions where blockchain adoption has been more aggressive in
supply chains. His findings suggest that blockchain’s role is not only about improving
efficiency but also about stimulating innovation ecosystems in logistics, retail, and
manufacturing. Blockchain adoption has spurred new business models—ranging from real-
time carbon footprint monitoring to automated compliance workflows—which reshape how
firms compete and collaborate globally.
IEOM (2023) reinforces these concerns, noting that while blockchain clearly strengthens
supply chain resilience and green performance, implementation challenges persist. These
range from interoperability with existing systems to the reluctance of stakeholders to share
commercially sensitive data. Similarly, IJERD (2022) warns of the limitations of blockchain in
global contexts, particularly in ensuring transparency and fraud prevention. While
acknowledging blockchain’s strengths, the review points out that organizational and cultural
barriers—such as lack of trust between suppliers in rival markets—remain formidable.
These critiques are further supported by Jackson (2024), who underlines the difficulty of
onboarding smaller suppliers into blockchain ecosystems. Without financial or technical
support, SMEs rseems to bek exclusion, further fragmenting global supply chains. Taken
together, these cautionary notes temper overly optimistic narratives about blockchain
adoption: while the potential to reshape sustainable supply chains is evident, unresolved
challenges related to cost, complexity, and equitable participation must be addressed.
Across the surveyed literature, three key thematic trends emerge. First, blockchain seems to
be increasingly recognized as a trust-enabling mechanism for SSCM. Whether in food safety,
ethical labor verification, or emissions tracking, blockchain presents new possibilities for
making supply chains auditable and transparent without reliance on traditional
intermediaries. This aligns with growing stakeholder demands for corporate accountability.
Second, the literature points to blockchain’s role in enabling integration with broader
governance and sustainability frameworks. From ESG compliance (Mulligan, 2024) to
regulatory reporting (Sahoo, 2022), blockchain seems to be positioned not only as a business
efficiency tool but also a governance instrument with wide-reaching implications.
Third, the challenges highlighted reflect the technology’s dual role as both opportunity and
obstacle. Scholars identify technical issues such as scalability and energy use, economic
barriers like high setup costs, and organizational barriers such as resistance among smaller
suppliers and data privacy concerns. This paradox reflects blockchain’s status as a
“potentially revolutionary yet still maturing” technology.
Despite the richness of contributions, notable gaps remain in the literature. Many works
focus on conceptual or case-based insights, with limited large-scale empirical
evidence quantifying blockchain’s sustainability impacts across full supply chains.
Longitudinal studies assessing blockchain’s ability to reduce carbon emissions, improve labor
standards, or enhance circular supply chain practices are sparse and urgently needed.
Additionally, the inclusivity gap remains underexplored. While several sources raise concerns
about SME participation, few studies provide concrete frameworks for scaling blockchain to
include small actors without creating financial or digital divides. More research into
lightweight, low-cost blockchain implementations tailored for SMEs and developing regions
could help address this limitation.
Finally, there seems to be an urgent need to explore blockchain’s synergies with adjacent
technologies such as IoT, machine learning, and carbon tracking systems. While some case
studies explore these integrations, systematic research on combined impacts is lacking. Such
integrations can enhance real-time data collection, improve predictive modeling of supply
chain disruptions, and enable adaptive systems capable of responding dynamically to
sustainability challenges.
The literature reviewed across blockchain and sustainable supply chain management (SSCM)
demonstrates a striking convergence on several recurring themes: the centrality
of traceability, the enhancement of transparency, and the cultivation of trust among supply
chain actors. These elements emerge as the theoretical cornerstones underpinning
blockchain’s promise. Together, they position blockchain as more than just a technical
innovation—it represents a governance mechanism and a systemic approach to addressing
long-standing inefficiencies and ethical challenges in global supply networks. At the same
time, these works collectively highlight critical gaps and unresolved questions regarding
adoption, scalability, and impact assessment that must be addressed for blockchain to
realize its potential in sustainable supply chains.
Across the literature, traceability emerges as the most dseems to becussed and practically
tested attribute. Traceability refers to the ability to follow goods, raw materials, or services
across multiple stages of the supply chain—from sourcing and transformation to distribution
and end use. Blockchain’s unchangeable recordkeeping is particularly valuable for industries
where provenance determines value, ethics, or safety, such as agriculture, food, fashion, and
mining. By recording provenance data on a distributed ledger, blockchain reduces the risk of
fraud, counterfeit certifications, and unverified sustainability claims. As multiple studies
show, this function is critical for reducing greenwashing, a phenomenon where companies
exaggerate or fabricate claims of environmental responsibility without sufficient evidence.
By embedding supply chain events into a transparent, tamper-proof system, blockchain
generates accountability and provides concrete compliance pathways with sustainability
standards.
The second core concept is transparency, understood as visibility of supply chain operations
to stakeholders—including businesses, regulators, consumers, and civil society. Blockchain
enables near real-time data sharing, making information about trade transactions,
environmental impact, emissions, or labor verification available to authorized participants.
Transparency serves two critical functions: it enforces compliance through visibility and
strengthens stakeholder confidence in corporate sustainability claims. For example,
reporting mechanisms that once relied on paper audits and episodic inspections can be
automated through blockchain verified records, drastically reducing both cost and time
while improving accuracy.
The third recurring theme is trust-building. Conventional supply chains often operate in
environments of mistrust, where suppliers may withhold information, buyers question
authenticity, and audits are prone to manipulation. Blockchain shifts this dynamic by
decentralizing trust, creating a system where no single actor controls data and all
participants can validate transactions. This theoretical shift reduces reliance on
intermediaries and strengthens cooperation along the supply chain. Trust also extends
beyond operational partners to external stakeholders: consumers gain confidence in
certified ethical products, investors rely on accurate ESG disclosures, and regulators achieve
greater oversight with reduced administrative burdens. Together, these features reinforce
blockchain’s portrayal as both an operational tool and a both social and technical enabler of
sustainable practices.
The literature also reveals several important trends shaping blockchain’s relationship with
SSCM. The first seems to be the widespread acknowledgment that blockchain is not merely
an economic efficiency tool, but also a driver of social and environmental responsibility.
Trends indicate a shift from early research focused narrowly on operational optimization to
broader sustainability applications. For instance, scholars highlight blockchain’s ability to
monitor carbon emissions, verify fair labor standards, and integrate with technologies like
IoT sensors to measure resource flows more accurately.
A third noticeable trend seems to be the growing debate around policy integration and
governance frameworks. Several studies emphasize blockchain’s importance in ESG
reporting and regulatory compliance. Rather than functioning solely as a commercial tool,
blockchain increasingly appears in discussions on how governments, certification bodies,
and international organizations may enforce sustainable supply chain regulations. This trend
highlights blockchain’s strategic positioning as a mechanism for bridging voluntary corporate
sustainability initiatives with enforceable, standardized regulations.
Finally, there seems to be a trend of balancing optimism with realism. Works from 2022–
2025 demonstrate less hype-driven rhetoric and more critical evaluations of blockchain’s
practical adoption. Scholars increasingly acknowledge both the potential benefits and
inherent limitations, signaling a maturing body of research that incorporates nuanced, case-
based evidence rather than speculative frameworks.
While the theoretical foundations and emerging trends are promising, significant challenges
remain in blockchain’s adoption for sustainable supply chain management.
The foremost challenge is technology interoperability. Supply chains are inherently global
and diverse, involving multiple companies that already operate varied digital systems.
Current blockchain platforms often lack standardization and do not integrate seamlessly
across different industries or regions. Without interoperability, blockchain risks creating
fragmented enclaves rather than unified supply chain ecosystems.
Another pervasive barrier is regulatory ambiguity. Questions remain around data ownership,
privacy, smart contract enforceability, and cross-border legal frameworks. Without clear
regulations, firms face uncertainties when investing in blockchain systems, particularly when
such investments involve sensitive sustainability-related disclosures. The lack of international
agreements further complicates global supply chains, where blockchain must operate across
multiple legal jurisdictions.
Cost barriers also present considerable obstacles, especially for small and medium-sized
enterprises (SMEs). While large corporations and multinational firms may have the resources
to onboard blockchain solutions, SMEs—which constitute the backbone of most supply
chains—often struggle with high technical costs, lack of expertise, and insufficient digital
infrastructure. Exclusion of SMEs risks undermining blockchain’s inclusivity and limiting its
effectiveness in certifying supply chains end to end.
Moreover, privacy concerns remain unresolved. Transparency lies at the heart of blockchain,
but forcing businesses to disclose sensitive operational data could erode competitive
advantage. This tension between radical transparency and strategic confidentiality raises
fundamental questions about governance models, permissioned versus public blockchains,
and data access rights.
Despite growing interest, several gaps limit the current understanding of blockchain’s role in
SSCM. One major gap seems to be the absence of rigorous impact measurement. While
many case studies point toward improved efficiency, traceability, or trust, there is limited
large-scale, empirical evidence demonstrating quantifiable improvements in sustainability
outcomes such as reduced emissions, enhanced labor protections, or circular resource
utilization. Much of the existing literature remains conceptual or exploratory, with fewer
longitudinal studies that test blockchain adoption over extended timeframes and across
multiple stakeholders.
A second gap concerns scalability assessments. Most blockchain applications to date have
been pilot-level initiatives or industry-specific projects. Questions remain as to whether
blockchain can be scaled globally across networks involving thousands of actors and millions
of transactions daily, particularly without generating excessive energy use or inefficiencies.
Scalability also raises issues of governance: who funds, oversees, and enforces blockchain
systems when scaled to international levels?
To address these gaps, the literature points to several promising research directions.
Scholars call for policy-oriented research that investigates how blockchain integrates with
sustainability regulations, ESG reporting standards, and international law. This would help
clarify how blockchain can move from voluntary experiments to mainstream compliance
infrastructure.
Another area seems to be the advancement of technical research into privacy and
interoperability solutions. Innovative architectures that permit selective transparency while
ensuring fundamental immutability are needed to reconcile blockchain with real-world
corporate concerns.
Lastly, research must explore blockchain’s social inclusivity, particularly how SMEs and actors
in developing economies can participate equitably. Without careful attention to inclusivity,
blockchain risks exacerbating digital divides instead of contributing to genuinely sustainable
and socially responsible supply chains.
Tentree, a prominent Canadian apparel company, has positioned itself as a leader in ethical
sourcing and sustainability within the fashion industry—a sector traditionally challenged by
opaque supply chains and ethical uncertainties. Recognizing common industry issues such as
difficulties in verifying raw material provenance and ensuring fair labor conditions across
geographically dispersed suppliers, Tentree adopted blockchain technology as part of its
sustainability strategy.
To tackle these challenges, Tentree implemented a blockchain-based transparent ledger that
tracks every step of the product journey, from fiber origin and manufacturing to final
product delivery. This ledger not only serves as an unchangeable record but also
incorporates smart contracts designed to enforce compliance with environmental standards
and labor practices. These contracts automatically trigger audits or penalties if suppliers
deviate from agreed sustainability criteria, significantly improving oversight and
accountability.
Sources documenting Tentree’s blockchain journey include the 2025 report from the
Institute of Sustainability Studies, which highlights Tentree as a case of successful supply
chain digital transformation, and a 2022 article published in PMC detailing the operational
and consumer engagement benefits of blockchain in apparel.
Maersk, a global giant in shipping and logistics, sought to confront persistent transparency
and efficiency challenges in freight transport, with a strategic focus on sustainability through
emissions reduction and waste minimization. Given the multi-party nature of global
shipping, with complex customs procedures and frequent manual documentation errors,
Maersk partnered with IBM to develop TradeLens, a pioneering blockchain-based platform.
TradeLens integrates blockchain with Internet of Things (IoT) sensor data and smart
contracts to enable real-time cargo tracking, automate customs clearance, and verify
emissions at multiple touchpoints in the supply chain. The platform provides all participants
—shippers, freight forwarders, ports, and customs authorities—with a shared, unchangeable
view of transport events, ensuring timeliness and accuracy.
The effectiveness of TradeLens has been extensively documented, including in the 2025
AIMultiple industry analysis and the 2022 Deloitte report on blockchain-driven logistics
innovation.
The diamond industry faces acute challenges around ethical sourcing, particularly relating to
conflict diamonds and labor abuses. De Beers, the world’s leading diamond producer,
deployed blockchain to enable end-to-end provenance tracking of diamonds, ensuring that
every stone seems to be ethically sourced and untampered.
Reported outcomes include improved supply chain integrity, increased consumer willingness
to pay premiums for verified ethical diamonds, and operational cost savings through
reduced counterfeit detection efforts.
Walmart has spearheaded blockchain adoption to improve food safety and sustainability in
its supply chains, especially for perishable goods like leafy greens and seafood. By
collaborating with IBM Food Trust, Walmart implemented blockchain to document critical
information such as harvest dates, shipment conditions, and temperature controls.
Key results included a drastic reduction in food recall response times from weeks to mere
minutes, thus minimizing waste and enhancing public health safety. The system also
supports sustainability claims about organic certification and fair farming practices,
empowering Walmart to establish more responsible sourcing models and reducing
environmental impacts related to food loss.
Bumble Bee Foods, a major player in the seafood industry, implemented blockchain to
improve traceability and sustainability of tuna products. By tracking catch location, vessel
performance, and supply chain events, Bumble Bee reduced illegal, unreported, and
unregulated fishing practices.
However, patterns also reveal challenges, such as the need to onboard diverse suppliers,
manage interoperability across platforms, address data privacy concerns, and contend with
technology costs. Successfully harnessing blockchain requires combining technical
innovation with stakeholder collaboration and aligning blockchain efforts with broader
sustainability goals and regulatory frameworks.
The synthesis of literature and case examples presented in this study provides strong
evidence that blockchain technology holds significant promise for advancing sustainable
supply chain management (SSCM) by improving transparency, traceability, and trust. This
section critically analyses the convergence between theoretical insights and real-world
applications, identifying recurring patterns, challenges, and emergent lessons that can
inform both practice and further research.
These examples substantiate earlier claims in the literature that blockchain can shift supply
chain interactions from opaque, trust-deficient exchanges to collaborative ecosystems
grounded in transparency. By removing the need for intermediaries and fostering shared
verification, blockchain strengthens trust not only among direct supply chain partners but
also with external stakeholders, such as consumers and regulators. This trust-building
function aligns with multiple theoretical frameworks positioning blockchain as a both social
and technical mechanism for enhancing supply chain governance.
A recurrent theme emerging from the combined insights seems to be the vital importance of
establishing collaborative blockchain ecosystems that extend beyond individual firms. Both
Tentree’s and Maersk’s cases demonstrate that the benefits of blockchain are amplified
when multiple supply chain actors—suppliers, manufacturers, logistics providers, and
auditors—join a shared, standardized platform. This observation reinforces scholarly
arguments about interoperability and network effects: blockchain’s value increases
exponentially as more participants adopt common protocols and data standards. Achieving
such ecosystems requires not only technological solutions but also complex organizational
and institutional coordination, underscoring that blockchain adoption is as much a
managerial and relational challenge as a technical one.
Integration with Internet of Things (IoT) devices and smart contracts also emerges as a
consistent pattern. IoT sensors provide the critical empirical data—such as temperature,
location, or emissions—that blockchain platforms need to keep accurate, verifiable records.
Smart contracts automate compliance and trigger alerts or corrective actions when
sustainability standards are breached, reducing manual oversight costs and increasing
responsiveness. This combination of digital technologies illustrates the growing shift
toward intelligent, automated supply chains that proactively monitor and enforce
environmental and social parameters, a trend well-documented in contemporary supply
chain management research.
Cost barriers also present ongoing issues, particularly for small and medium-sized
enterprises (SMEs) and suppliers in developing regions. While leading firms may absorb
blockchain deployment expenses, onboarding smaller players limits network inclusivity and
may create uneven sustainability benefits. This concern resonates with critique in the
literature warning against blockchain exacerbating existing digital divides rather than
promoting equitable supply chain upgrades. Strategies to subsidize or simplify blockchain
access for marginalized actors warrant further exploration and policy support.
Regulatory uncertainty compounds these challenges. Blockchain’s novelty means that legal
frameworks governing data privacy, digital contract enforceability, and cross-jurisdictional
data sharing are nascent. This uncertainty causes decision-makers to hesitate in blockchain
investments or to adopt minimalistic approaches that limit system potential. Integrating
blockchain into existing regulatory architectures while simultaneously shaping new
governance models remains an active area of debate and development. The dual regulatory
and technological maturity required calls for coordinated efforts by governments, industry
consortia, and civil society.
Synthesizing insights from literature and cases yields several key lessons for advancing
blockchain-driven sustainable supply chains. First, technology alone seems to be insufficient:
successful blockchain adoption depends critically on embedding the technology
within robust governance frameworks that address legal, ethical, and organizational
dimensions. Effective governance ensures that blockchain transparency does not devolve
into surveillance, that inclusivity is prioritized, and that accountability mechanisms function
well in practice.
Second, fostering inclusive participation across supply chain tiers—especially involving SMEs
and suppliers in emerging economies—is essential for maximizing sustainability benefits.
Efforts to provide training, technical assistance, and financial support to smaller actors are
necessary to avoid perpetuating inequities and to ensure end-to-end accountability.
Fourth, there seems to be a pressing need for multi-stakeholder collaboration models that
bridge private sector innovation with public regulatory frameworks, civil society advocacy,
and consumer engagement. Blockchain’s full sustainability potential arises at this
intersection, where technological innovation supports systemic change toward greener and
more ethical supply chains.
Key Findings
This chapter has explored the multifaceted potential of blockchain technology to catalyze
sustainable supply chain management by enhancing traceability, transparency, and trust.
The fundamental blockchain properties—unchangeable data records and shared across
many participants trust networks—prove powerful tools for verifying compliance with
environmental regulations, ethical labor practices, and broader sustainability standards. By
creating a shared ledger distributed securely across multiple supply chain stakeholders,
blockchain reduces the longstanding challenges associated with opaque systems plagued by
information asymmetry, fraud, and inefficiency.
Evidence from both academic literature and high-profile real-world cases such as Tentree’s
apparel supply chain and Maersk’s TradeLens platform supports blockchain’s ability to
achieve key sustainability outcomes. These include improved provenance tracking that
reduces greenwashing and counterfeiting, increased operational efficiency by automating
processes through smart contracts, and quantifiable emissions reductions resulting from
better logistics coordination and validated carbon footprint monitoring. Furthermore,
blockchain enables timely and accurate reporting that strengthens ESG compliance and
regulatory oversight, meeting critical demands from regulators, investors, and consumers
alike.
However, the findings also surface persistent barriers that temper blockchain’s
transformative promise. Challenges such as technology interoperability gaps, high
implementation costs for smaller supply chain participants, regulatory uncertainties, and
privacy concerns complicate adoption and limit scalability. Without strategic interventions,
these obstacles risk confining blockchain’s sustainability benefits to a narrow set of large,
technologically advanced firms rather than enabling systemic transformation across entire
global supply chains.
Based on the comprehensive analysis of literature and cases, several practical insights
emerge that policymakers, managers, and scholars can apply to foster the maturation and
broader uptake of blockchain-enabled sustainable supply chains.
4. Develop and Use Impact Metrics for Continuous Evaluation and Improvement
Robust, standardized metrics must be developed to measure blockchain’s contribution to
sustainability outcomes, encompassing environmental, social, and economic dimensions.
Continuous impact evaluation will provide evidence-based feedback loops that validate
blockchain’s effectiveness, inform iterative improvement, and increase stakeholder
confidence. Such metrics should align with globally recognized sustainability reporting
standards (such as GRI or SASB) to facilitate comparability and transparency. Data
transparency combined with open reporting will also disincentivize greenwashing, assuring
that blockchain enables genuine progress rather than superficial compliance.
To support and accelerate blockchain’s role in sustainable supply chains, future scholarly
efforts should prioritize:
Limitations
A major constraint lies in the heavy reliance on secondary data sources, including academic
literature, industry reports, and publicly available case studies. While these sources offer
valuable insights and detailed descriptions, they inherently limit the empirical rigor and
granularity that primary data collection could provide. Secondary data often focus on early-
stage pilots, anecdotal evidence, or self-reported company performance, which may
introduce biases or partial representations of blockchain’s operational and sustainability
impacts. The lack of direct field observations, stakeholder interviews, or real-time
transaction datasets restricts the chapter’s ability to conduct deep causal analyses or
nuanced evaluations of blockchain adoption dynamics.
Building on these limitations, several promising avenues for future research emerge,
designed to deepen understanding and maximize blockchain’s contribution to sustainable
supply chains.
By addressing these research imperatives, scholars and practitioners can better harness
blockchain’s potential to create more transparent, equitable, and sustainable supply chains.
Embracing methodological diversity, participatory approaches, and responsible innovation
principles will be key to advancing both understanding and practice in this dynamic field.
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