It is strongly believed that blockchain technology can be the missing puzzle piece to explicate the crossing of digitalisation and sustainability. Blockchain technology gives the opportunity to focus on the complete triple bottom line, instead of on single pillars.
In today’s business landscape, sustainability has become a key differentiating factor for enterprises. The upcoming booms are rooted in digitalisation and sustainability. Still, there are problems with current sustainability approaches. One major problem is greenwashing, where organisations claim their initiative to be way more sustainable than it actually is. Additionally, sustainability strategies often only serve single sustainability pillars, instead of sustainability as a whole. More and more enterprises are now investing in digital technologies as a means to achieve their sustainability goals.
Three pillars of sustainability
This article is an introduction to a deeper explanation found in our ebook: Using Blockchain for Sustainability.
Often, sustainability is solely associated with the environmental aspect, but it encompasses much more than that. In essence, sustainability is about achieving continuous growth within an enterprise. It is built upon three fundamental pillars that are often referred to as the “triple bottom line” (TBL).
- Economic Sustainability (Profit): Includes all aspects within the business, which aim towards creating economic growth without colliding with environmental and social needs
- Social Sustainability (People): Includes all social features a business should imply, in order to create a planet driven by equal and inclusive manners
- Environmental Sustainability (Planet): Can be defined as the attention of a business to act and adjust in favor of the planet
All in all, it is the mixture of all three pillars that allow for a fitting plan of action. The idea of creating shared value is a good representation of what sustainability consists of. Whilst focusing on the triple bottom line, businesses simultaneously do such whilst still aiming for profitability, cost-effectiveness, and risk mitigation. So where can blockchain play a role, to cater to all those goals?
Another term that has gained popularity is ESG goals (Environmental, Social, and Governance). ESG goals primarily focus on monitoring and controlling business activities and business performance toward achieving sustainability. In contrast, the triple bottom line looks at the business from a wider perspective by taking into account sustainability beyond the four walls of the organisation.
A power couple: Blockchain technology driving sustainability
More and more have jumped on the blockchain bandwagon and the interest is assumed to only increase in the future. To keep it short and simple: the main function of blockchain technology is secure data storage and information sharing (transactions) across a wide network. The main reason, as to why blockchain can be a key to sustainability improvements are its characteristics of being:
All in all, blockchain technology’s transparent and decentralised nature allows for open communication and traceability of data. It can drive internal efficiency through automation and smart contracts and embraces financial and social inclusion. These are only a few of blockchain technology’s many advantages concerning sustainability.
- Businesses are investing in digital technologies to achieve their sustainability goals.
- Blockchain technology’s transparent and decentralised nature allows for open communication, internal efficiency through automation and smart contracts, and financial and social inclusion, making it a key factor in achieving sustainability.
- Using blockchain technology for supply chain management can help businesses achieve their sustainability goals by promoting a circular economy, increasing transparency, and improving efficiency through automation with smart contracts.
- Social sustainability is becoming increasingly important, and blockchain technology can help with financial and social inclusion by promoting trust and accountability and enabling equitable and sustainable development.
- DAOs offer businesses an approach to decision-making that includes contributions from anyone in the community, promoting diversity and strengthening of community management.
- Blockchain technology can be used for charity purposes to build trust with donors by providing a transparent ecosystem where donations can be tracked and verified.
- Decentralised waste management systems through blockchain can streamline coordination with waste removal organisations, incentivise environmentally friendly waste disposal practices, and engage consumers in businesses’ sustainability efforts.
- Blockchain technology can help create a more efficient and sustainable renewable energy market, providing cost-effectiveness, regulatory compliance, and competitive advantage for organisations investing in renewable energy.
- Carbon credits and offsets can be traded on the blockchain, creating an additional revenue stream for organisations and demonstrating their commitment to environmental sustainability.
- Barriers to the adoption of blockchain include a lack of knowledge, a steep learning curve, data compliance, the conception of blockchain as a major energy consumer, and cost-efficiency.
How Zaisan can help you
At Zaisan, we are dedicated to keeping up with the latest developments in blockchain technology, how it impacts sustainability, and providing you with the best support and advice.
Europechain by Zaisan is a next-generation and public blockchain, which can cater to your sustainability goals. Europechain is a carbon-neutral, and GDPR-supportive chain, which offers security and efficiency for your enterprise.