Blockchain technology applications : CO2 tracking in supply chains

Abstract

In recent years, blockchain technology has drawn considerable interest from different industries and communities across the globe. From IBM to Microsoft, from Chile to Estonia, businesses and governments are investing in blockchain and are looking for ways to create new opportunities thanks to this revolutionary technology. Bitcoin has revolutionized financial markets; however, the possibilities blockchain offers behind cryptocurrencies are infinite. Many use cases ranging from energy management to supply chain optimization are at the forefront of innovation. Besides, blockchain is said to be one of the most successful enablers of sustainability. We livre in a world where global warming has direct consequences on our everyday lives. Companies are starting to understand that climate change also represent a risk for their business that can result in severe profit downturns. An efficient way for companies to mitigate that risk is not only to assess their direct carbon impact, but also the environmental footprint of their entire value chain. This process can be carried out at the company level using Life Cycle Analyses tools. However, we are forced to note that investors demand more transparency and customers require greater clarity on the carbon footprint of delivered products. Based on a project initiated and supported by ENGIE Impact, this Master thesis attempts to create a new paradigm of supply chains where blockchain could be used to track the CO2 emissions associated to a specific product. By combining the decentralization, transparency, and data security features of blockchain with the benefits provided by Smart Contracts, we propose a comprehensive model of blockchain application for CO2 tracking. To illustrate the theoretical development of such an application, we focused on the use case of the potato fries value chain in Belgium. The paper describes all the methodological and technological aspects behind the application and shows how blockchain can bring significant value and incentives to its ecosystem of stakeholders. Finally, this paper concludes on the significant added value blockchain brings about in comparison with other technological solutions.