Blockchain Firm Diginex Forges Partnership With Coca-Cola
Diginex, a startup that uses blockchain technology, has launched its new ESG supply chain traceability tool-diginexLUMEN. The company launched the tool with the help of Coca-Cola as a partner.
The blockchain solution was developed in a partnership between Diginex, Coca-Cola, and Reckitt. It aims to promote supply chain due diligence in the company’s operations.
Diginex and Coca Cola Collaborates for ESG Supply Chain Monitoring
Diginex has developed its ESG supply chain traceability tool-diginexLUMEN with the help of Coca-Cola and Reckitt. The company plans to use this blockchain tool to curb the increasing state of forced labor and violation of human rights within the global supply chains.
A collaboration between Diginex and the US ministry of Labour has unearthed details that about 160M children are involved in child labor which violates their rights. It has also been concluded that about 25M adults and children are also involved in forced labor globally. This news is not a surprise as most companies focus on increasing profitability without caring about people’s rights.
Now, Diginex has a blockchain solution that uses a continuous data collection method to increase transparency in supply chain management. The solution specifically focuses on multi-stakeholder engagement to fulfill its objectives. It will use blockchain technology to pull together the collected information and prepare a report on the potential risk levels of ESG compliance in institutions.
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The company hopes that continuous use of the system to monitor the ESG compliance among institutions will enhance compliance to labor rights. It also hopes that its innovation would improve the working conditions of many.
“ESG products and services have primarily focused on the ‘environmental’ and ‘governance’ aspects to date – the ‘social’ aspect has been harder to address. diginexLUMEN is here to change that by setting a new standard for supply chain due diligence,” said Mark Blick, CEO of Diginex. “The granular insight that diginexLUMEN gives brands has the power to transform the lives of millions of people currently stripped of their employment rights and working in potentially harmful conditions.”
Supply chain management has been experiencing issues with mistreatment of the labor force for a long time. Some time ago, details on cobalt mining, a mineral essential in developing electrical batteries, surfaced. The information claimed that underage labor was used in the cobalt mines globally.
The main focus was on Congo, which is a leading cobalt exporter. The reveal led to backlashes against mobile phone manufacturers and companies like Polestar and Tesla. Tesla followed the story by announcing a blockchain project to monitor its cobalt and nickel supply.
Elsewhere, the rate of blockchain technology adoption is increasing globally. Numerous crypto firms are using blockchain technology to improve businesses globally. Recently Stripe partnered with FTX to allow businesses to enable fiat deposits for crypto payouts in local currencies. It also provides fraud prevention measures for businesses.
These developments show that blockchain technology is evolving at a fast rate. However, it is best to DYOR before investing in blockchain projects as most are unregulated and could lead to significant losses.
