Tech
SAP and Unilever pilot blockchain technology to support deforestation-free palm oil
Raw materials such as palm oil are often mixed with physically identical raw materials from sustainable and unverified sources beyond the “first mile” of the supply chain, causing origin information to be hidden or lost.
In a successful proof of concept in Indonesia, Unilever used GreenToken to source over 188,000 tonnes of oil palm fruit. The solution allowed Golden Agri-Resources and other suppliers that Unilever sources from to create tokens that reflect the material flow of palm oil throughout the supply chain and capture the unique attributes linked to the oil’s origin.
“With GreenToken, we want to offer bulk raw materials the same traceability and supply chain transparency that you get by scanning a bar or QR code on any consumer product,” said Nitin Jain, co-founder and general manager of GreenToken at SAP. solution, SAP. “Our solution allows companies to determine what percentage of palm oil products they have purchased from a sustainable source and trace this back to the final consumer product.”
“Technology has played an important role in our efforts to improve visibility and transparency in our palm oil supply chains,” said Anita Neville, head of sustainability and communications, Golden Agri-Resources. “Our participation in the pilot project of the GreenToken by SAP solution with SAP and Unilever provided useful insights into how to successfully transfer information between different actors in the supply chain.”
The GreenToken solution has helped Unilever track, verify and report in near real-time the origins and journey that palm oil takes through its long and complex supply chain.
“Unilever is committed to a deforestation-free supply chain by 2023, and blockchain technology has the potential to help companies, like ours, monitor their supply chains to ensure the raw materials we buy respect people and the planet,” said Dave Ingram, chief procurement officer, Unilever. “We are encouraged by the promising results of our pilot project with SAP’s GreenToken, the latest building block in our technology-driven approach to ensuring a more traceable and transparent supply chain.”
The work with GreenToken reinforces Unilever’s ongoing, industry-leading efforts to gain full visibility of its supply chain.