Unilever and SAP to Trial Blockchain Solution for Preventing Palm Oil Deforestation

With a fresh pilot program aimed at improving the tracking and openness of its worldwide supply chain, Unilever is putting palm oil on the blockchain. The firm as revealed that it has partnered with SAP, a German enterprise software titan, to conduct a test of the GreenToken by SAP platform, which intends to trace palm oil digitally along its distribution chain.

Just after ‘initial mile’ of the distribution chain, the adoption of blockchain technology intends to decrease the danger of raw goods such as palm oil from being combined with similar raw materials from certified and non-confirmed sustainable sources, paving way for the loss or concealment of origin details.

The trial complements a successful PoC (proof of concept) initiative in which Unilever used GreenToken to purchase over 188,000 tons of palm fruit (with oil content) from Indonesia.
According to SAP, the solution allowed Golden Agri-Resources as well as other Unilever vendors to develop tokens that reflect the material movement of palm oil along the distribution chain and record the distinctive characteristics associated with the oil’s origination.

“Through the use of GreenToken, we aim to deliver massive quantities of raw materials with comparable tracking and supply chain transparency that end users are offered by scanning a bar or QR code on any consumer item.” SAP co-founder and general manager Nitin Jain remarked. “Our system enables businesses to determine how much of the palm oil they buy comes from a sustainable source and monitor it all the way to the final customer.”

Unilever’s chief procurement officer, Dave Ingram, said that the initiative will assist the firm in meeting its aim of having a deforestation-free distribution network by 2023. He further stated “Blockchain technology has the ability to assist firms such as hours, tracking their distribution chains and ensuring that the commodities we acquire are humane and environmentally friendly. The encouraging findings of our trial with SAP’s GreenToken, the newest component of our tech-driven strategy to ensuring a highly verifiable and accessible supply chain, give us hope.”

Golden Agri-Resources’ chief sustainability and communications executive, Anita Neville, agreed that technology has improved the company’s solution to clients.

“Technology has played an important role in our efforts to enhance visibility and transparency in our own palm oil supply chains. Our participation in the GreenToken pilot with SAP and Unilever provided useful insights in how to successfully pass information between different actors in the supply chain.”