Earlier this week, Unilever and SAP announced they were partnering to pilot the GreenToken by SAP solution in Unilever’s supply chain. This blockchain-based technology will allow Unilever to trace its global palm oil resources, making sure that the origins of this raw material are transparent and sustainably verified. Unilever owns brands such as Wall’s ice cream, Magnum, and cleaning products Omo and Comfort.
In the past two decades, palm oil production has more than tripled – due to it being one of the most common raw materials in many household goods, from cosmetics to detergents to chocolate and biofuel. As demand for cheap palm oil grows, rainforests are burnt, clearing the way for more palm plantations. Palm oil expansion in countries such as Malaysia and Indonesia is the leading cause of carbon dioxide emissions, rainforest destruction, and human rights issues.
Also, even if palm oil is being responsibly produced, global supply chains can often co-mingle this product with less responsibly sourced palm oil, making it difficult for companies to claim a sustainable supply chain.
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