Technology and Sustainability meet in harmony in plans for Unilever’s blockchain.

Unilever’s tea supply chain has come under fire in the recent years for lacking transparency into elements of working conditions and human rights of suppliers in various regions.

The headlines today read quite differently.

Announced at a recent sustainability conference in Paris, Unilever will start a project to create a working blockchain to oversee transparency in their tea suppliers' activities in Malawi. To aid the construction and execution of this project, Unilever will collaborate with the supermarket chain Sainsbury, packaging-distribution company Sappi, and financial service providers: BNP Paribas, Barclays and Standard. The project will too be aided with the help of several technology startup ventures.

Goals of the blockchain’s existence will track and verify contracts for farmers in regions of Malawi whom produce tea for Unilever and Sainsbury. The impact of this project could be wide spanning, as tea is the second largest agricultural export for Malawi’s economy.

“According to the group, the initiative could reach up to 10,000 farmers. The idea is to provide preferential pricing for those who are focused on sustainable farming methods designed to increase harvests without using more land. That's where the banks come in: They're interested in helping finance farms that have committed to these practices, but it has been difficult to validate which ones truly are following through” (Clancy 2017).

This is exactly where the ledger capabilities of a financial blockchain come into play. Using digital currencies instead of physical funds, blockchain technology can be used to “manage and append information related to all manner of transactions or contracts” (Clancy 2017). Meaning, it can start eradicating the unethical actors from the supply chain. 

This initiative will be important in achieving sustainability goals, Unilever’s corporation has set, to source all raw materials sustainably.

Keith Weed, CMO and head of sustainable business thinks that this project is a step in the right direction for discovering new sustainable business practices. “"This innovative new technology will help us increase sustainable sourcing, enhance the livelihoods of the smallholder farmers we work with around the world, and help to make sustainable agriculture mainstream," remarked Weed. 

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