Yesterday Diginex, a startup that uses blockchain to tackle ESG issues, launched its new ESG supply chain traceability tool – diginexLUMEN. The blockchain-based solution was developed in close partnership with The Coca-Cola Company and Reckitt, to help promote supply chain due diligence around working conditions.
The need for this tool stems from the increasingly worrying state of human rights and forced labor within global supply chains. A collaborative project between Diginex and the U.S. Department of Labor estimated that 160 million children globally are involved in child labor, with 25 million adults and children in situations of forced labor worldwide. Clearly, these terrible working conditions are not rare, and many companies are now looking for ways to monitor their supply chains in greater detail, to eradicate and further prevent them from happening.
This is where diginexLUMEN comes in. Its continuous method of data collection and emphasis on multi-stakeholder engagement aims to promote transparency in companies’ supply chains. The tool uses blockchain to link all of this information together, ready to report back potential risks and levels of ESG compliance to companies. It is hoped that continuous monitoring and blockchain technology will help reduce the harmful practice of forced labor and improve human rights conditions for workers.
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