Why the automotive industry needs blockchain

February 21, 2023

Rio Tinto and BMW are partnering to develop more responsible, sustainable, traceable, and secure supply chains. The two companies will also work to deploy START.

Automotive companies are looking to implement transparency mechanisms to ensure their supply chains are traceable and transparent.

The automotive industry needs blockchain for ESG

The automotive industry is at a critical point: Without an industry standard for supply chain transparency and reporting, companies can’t verify their sustainability progress.

The solution? Blockchain.

With START’s blockchain technology, automotive companies gain a new level of supply chain visibility and transparency. Through START, you can prove your materials are responsibly produced and contribute to a more sustainable, equitable future. That’s important as stakeholders expect a deep level of transparency—even in complex supply chains such as automotive.

Infusing blockchain technology in the automotive industry unlocks full lifecycle transparency into key production materials such as aluminium, lithium, and copper.

From mine to market, automotive OEMs and suppliers gain the visibility you need to provide assurance to stakeholders. All through powerful, certifiable data.

Automotive supply chain data problems

In the first blog of our automotive series, we examined why ESG matters in automotive manufacturing. We also explained how to assure sustainability commitments to stakeholders.

Now, let’s explore why it’s so crucial to leverage blockchain in the automotive industry.

The automotive industry suffers from major data problems, including:

  • Uncertifiable data

  • Inconsistent reporting

  • Limited transparency and traceability

  • Inadequate technology

Almost 2/3

Almost 2/3 of decision makers said technology limits their ability to assess ESG risk and compliance.

Source: Source: Coupa Software Research Study

Certifiable data is crucial. According to a survey of 800 global business decision makers1, almost all agreed that they must receive data from suppliers to accurately assess how responsible their production practices are.

When data isn’t available, estimates are used to calculate ESG impact. Scope 3 emissions—responsible for more than 90 percent of the automotive sector’s carbon footprint2—prove how difficult it is to certify and calculate ESG metrics. Because Scope 3 emissions include hard to trace data such as supply chain activities and consumer usage, companies are forced to rely on inaccurate averages.

Lacking traceable data, many companies stitch together internal ESG insights for investor reports and regulatory audits. This disorganized approach leaves individual companies responsible for deciding what data gets collected and reported.

What’s needed? Standardization

A unified, industry-wide approach is a more effective way to measure and report such an interconnected supply chain. Without it, how can you provide assurance to your stakeholders that you’re making progress toward critical carbon neutrality targets?

START’s blockchain technology is key to erasing data problems—forever.

Almost 75%

Almost 75% of investors feel unified ESG reporting standards would aid their decision making.

Source: Source: PwC 2021 Global Investor Survey

Blockchain for data assurance

When most people see “blockchain,” they think financial transactions. Yet, other industries—including automotive—are quickly adopting blockchain technology to collect and report data.

START is pioneering blockchain to increase visibility into responsible material production practices. This visibility is important as the world shifts to electric vehicles (EVs), which require six times more minerals than conventional cars. Tracing vital materials, such as lithium used in EV batteries, will help automotive companies measure their ESG impact and prove they’re contributing to an ethical supply chain.

Unlike legacy technology, blockchain records data in real-time, through digital chains. Each transaction —or “block”—comprising a chain, stores data with a static time-stamped signature, preventing manipulation.

But why use blockchain in the automotive industry?


  • Improves trust through certifiable data

  • Simplifies data collection and reporting

  • Provides unprecedented supply chain transparency and traceability

  • Enables faster and greater data access

And, because of its sophisticated automation, START blockchain solves problems inefficient systems can’t—making it easier to collect verifiable data. Better data means better reports. Reports that meet stakeholder transparency demands.

START enhancing your supply chain visibility with blockchain

By joining the START programme, you’re declaring your brand a leader in responsible, sustainable business practices. You’ll play an integral part in setting a new standard of automotive supply chain transparency and traceability, powered by powerful blockchain technology.

Together, we can revolutionize what it means to source and produce responsibly. Join START and reap the benefits of blockchain.

1 How To Mitigate ESK Risk In Your Supply Chain / Coupa Software global survey of 800 businesses. | Coupa Software

2 ESG reporting challenges in the automotive industry / Daato