25 years: Trade finance & sustainability
Shona references case studies to disclose the sustainability issues regarding modern supply chains and offers the application of blockchain as a potential solution.
Shona references case studies to disclose the sustainability issues regarding modern supply chains and offers the application of blockchain as a potential solution.
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8 mins 8 secs
This involves the design, implementation and application of blockchain technology to incentivise improvements in sustainability standards in agricultural supply chains.
Key learning objectives:
Identify the issues with modern supply chains
Explain the application of blockchain to improve the sustainability of supply chains
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As a bank, build a traceability solution that could record the movement of clients goods through the supply chain and the audit certificates that attach to them, then to record this information immutably and uniquely in a way that could not be duplicated or faked.
If we could take the inputting of this data into a blockchain, so that the record can be shared with buyers and their bankers, and link this to paying the suppliers faster at a better price, then perhaps we could create a process that directly incentivises them to change their behaviour.
Why is the sustainability of this supply chain uncertain? These farmers have the following:
Living in the southern part of Africa, beset by impacts of climate change, results in insecurity for these farmers, and then coupled with the lack of access to credit and capital for investment, means that the sustainability of this supply chain is very uncertain.
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