Unilever tests blockchain technology in tracing palm oil origins to individual suppliers
The pilot, operated by Unilever and Green Token by SAP, helped to ensure that only sustainable sources for palm oil were used
Raw materials like palm oil are often mixed with physically identical raw materials from verified sustainable and nonverified sources after the “first mile” of the supply chain, causing the origin information to be either hidden or lost.
In a successful proof of concept in Indonesia, Unilever applied GreenToken, a blockchain technology, to source more than 188,000 tons of palm oil fruit. The solution enabled Golden Agri-Resources and other suppliers from whom Unilever sources to create tokens that mirror the material flow of the palm oil throughout the supply chain and capture the unique attributes linked to the oil’s origin.