Why blockchain is essential for the packaging value chain
It’s time for automation. Collecting and reporting ESG data is complex, manual, and ineffective.
In the complex, interconnected packaging value chain, tracing data can be extremely time consuming. It’s also subject to manual errors and manipulation.
Left unresolved, these problems only raise skepticism among stakeholders, questioning your data’s reliability. Inability to verify and certify sustainability data prevents you from positive outcomes such as:
More revenue from consumers willing to pay a premium for sustainable packaging
Progress on sustainability goals
That’s why the packaging value chain needs a digital, automated solution. It’s time to embrace blockchain.
Built on breakthrough blockchain technology, START simplifies ESG data collection and reporting. Our platform streamlines sustainability information, providing traceable insights on aluminium, a key packaging material.
With START’s blockchain technology, you gain unprecedented transparency and traceability.
Current issues
In our last blog, we examined how better traceability impacts the packaging supply chain.
Blockchain is the key to unlock traceability and transparency. It can also help you supply credible sustainability information to your stakeholders.
But until blockchain is embraced, the packaging industry will still face these data issues.
Unverifiable
Sustainability is different than financial reporting, where information is presented in a standard format and auditors then verify.
Such measures impart a tremendous amount of credibility to data. It shows transparency, and, in turn, inspires trust.
Today’s stakeholders—whether it’s investors, consumers, or regulators—must see robust and clear processes surrounding sustainability data. Improving transparency and where data is coming from is critical to credibility.
92%
Of S&P 500® companies published sustainability reports in 2020.
Inefficient
Because the industry is closely linked, it’s common for packaging companies to ask supply chain partners for sustainability data. If this data is unavailable, you may be forced to rely on industry averages.
Calculating complex metrics such as carbon footprint—which involves both internal data on Scope 1 & 2 emissions and external data for Scope 3 emissions—becomes challenging without automation.
Above all, inefficient manual data collection distracts from true process improvement.
No standard
Lack of standardisation is a major problem and causes widespread confusion. A standard set of metrics— collected and reported consistently—can ease any confusion stakeholders may have when reviewing data.
Over time, stakeholders recognise sustainability metrics. Better understanding enhances data’s value.
Why blockchain is key to relieving data issues
Through blockchain technology, START sets a new data collection and reporting standard at the top of the packaging value chain.
The result?
Companies further downstream—from miners to converters to food and beverage manufacturers—can verify the authenticity of their aluminium source and assure stakeholders with trusted sustainability credentials.
What is blockchain?
Blockchain operates on decentralised distributed ledger technology. Data is encrypted and shared across devices in digital chains, without human intervention. This prevents tampering and alteration.
Trustworthy, transparent, and real-time data is produced, improving credibility of ESG data reporting.
Blockchain technology in START enables you to transparently see aluminium’s journey from mine to market with supporting data points.
4 benefits
Improves trust through certifiable data
Simplifies data collection and reporting
Provides unprecedented supply chain transparency and traceability
Enables faster and greater data access
Why is blockchain right for packaging?
Blockchain’s sophisticated automation eliminates manual, error-prone data collection. That’s a critical function in packaging, a supply chain involving several links to transform raw material into finished product.
With certifiable data, you can easily generate trustworthy reports to share with stakeholders. It helps set a baseline for measuring how close you are to achieving sustainability goals. And this information empowers more responsible choices such as sourcing low carbon aluminium as a packaging material.
Demand for sustainability data is only projected to grow. Blockchain provides the visibility you need to meet this demand for increased transparency.
START tracking your supply chain with blockchain
Want to improve your supply chain visibility and increase transparency for your most important stakeholders? Join START. With our blockchain-based platform, collecting and reporting ESG data is easier than ever.
1 PwC 2021 Consumer Intelligence Series survey | PwC / 37% of executives said a lack of reporting standards and regulatory complexity are top barriers to ESG progress.