Blockchain solutions to ESG problems
Cryptocurrencies have been surrounded by hype and controversy - but the technology behind them, blockchain, is rapidly demonstrating its potential as a powerful sustainability solution. While offering advantages in many ESG related areas this relatively new technology has several issues to overcome.
Unlike cyyptocurrencies that gave birth to its underlying architecture, more companies seem to be taking blockchain technology seriously and reflecting that in their investment. This seems to be for good reason, with what may be a fundamental shift in how we store and share information. There are already a number of applications currently in development, including many that address traditional ESG problems, with the initial results on improving efficiency looking promising. However, investors should be aware of the scale of the task at hand in trying to integrate relatively early technology into long-established processes and business ecosystems. Given the current level of investment and its wide range of potential applications, blockchain technology is not going away. It might not grab the headlines in the way cryptocurrency has done so, but in the background (or back-office), it could provide exciting opportunities in helping companies tackle the sustainability issues that businesses face.