“Prove It”: How Blockchain Is Forcing Companies to Back Up Their Sustainability Green Claims

42% of Green Claims Are False: Here’s How Blockchain Is Fixing That. The Distributed Ledger Technology Exposing Fake Environmental Claims, Greenwashing & Rebuilding Consumer Trust

A European Commission study recently found that 42% of environmental claims examined were potentially false or deceptive (European Securities and Markets Authority, 2024). This alarming statistic confirms what sustainability professionals have long suspected: the growing demand for eco-friendly products has spawned an epidemic of unsubstantiated green marketing, leaving consumers skeptical and regulators concerned.

Enter blockchain technology. While most commonly associated with cryptocurrencies, this distributed ledger technology is now being repurposed to combat one of the most persistent challenges in corporate sustainability: the verification gap between environmental claims and reality.

The fundamental problem isn’t a lack of sustainability claims—it’s a lack of trusted verification. Companies make environmental assertions that consumers and regulators can’t independently verify. Blockchain technology changes that equation.

By creating immutable, transparent records verified by multiple parties, blockchain offers a promising new approach to environmental accountability. This article examines how blockchain technology is being deployed to combat greenwashing and redefine trust in sustainability claims.

Why Traditional Sustainability Verification Methods Fall Short

The current ecosystem for verifying sustainability claims relies heavily on occasional audits, self-reported data, and third-party certifications. While valuable, these mechanisms have significant limitations:

• Point-in-time verification: Traditional audits represent snapshots rather than continuous monitoring
• Information asymmetry: Companies control what data they release and how they present it
• Limited accessibility: Verification data often remains siloed and unavailable to consumers
• Centralised trust: Requires faith in individual certifying bodies

The current system places enormous trust in centralized authorities and self-reporting. When that trust erodes, the entire sustainability ecosystem suffers.

How Blockchain’s Verification Architecture Transforms Sustainability Claims

Blockchain addresses these verification challenges through its fundamental architecture. Unlike conventional databases controlled by a single entity, blockchain creates a distributed digital ledger where information is simultaneously stored across multiple computers. Each “block” of information links cryptographically to previous blocks, forming an immutable chain of verified data.

This structure creates several advantages for sustainability verification:

• Immutability: Once recorded, information cannot be altered without network consensus
• Decentralisation: No single entity controls the information
• Transparency: All authorised participants can access the same information
• Traceability: Complete history of transactions is permanently recorded

Most critically, blockchain requires consensus from multiple participants before information can be added or modified. This multi-source verification fundamentally changes how environmental claims are validated.

Multi-Source Sustainability Verification in Action: Real-World Examples

The Sustainable Apparel Coalition offers an instructive example of blockchain’s potential. The organisation is exploring integration of their Higg Index—which measures environmental impacts across the fashion industry—with blockchain technology.

For example, under this system, when a clothing manufacturer claims their shirt to be of “50% recycled cotton,” that claim could be cross-referenced against supplier certifications, material procurement records, and third-party verifications before being recorded on the blockchain.

The difference is truly profound. Instead of accepting environmental claims at face value, blockchain creates a system where sustainability claims are verified by multiple parties before they’re even recorded. It fundamentally changes the dynamics of trust.

Unilever’s blockchain pilot project for palm oil traceability illustrates this approach in practice. The consumer goods giant partnered with blockchain platform Provenance to trace sustainable palm oil from Indonesian smallholder farmers through the supply chain. The system records sustainability certifications and independent verifications at each step, creating a traceable path from farm to product.

IBM’s Food Trust platform has implemented similar verification for organic and fair-trade claims. Their blockchain solution requires consensus from multiple supply chain participants—farmers, processors, distributors, and certifiers—before sustainability claims are finalised.

Whereas previous traditional certifications tell you something was verified at some point, blockchain tells you who verified it, when they verified it, and makes that information permanently accessible to all participants.

Reducing Information Asymmetry with Blockchain Supply Chain Transparency

Beyond verification, blockchain democratises access to sustainability information, addressing the information asymmetry between companies and stakeholders.

Currently, companies choose what sustainability information to disclose. They can highlight favourable metrics while obscuring less flattering data. This selective disclosure makes it difficult for consumers, investors, and regulators to make informed decisions.

Blockchain flips this dynamic by making verified sustainability data accessible to all authorised participants. The data isn’t controlled by any single entity but is available to stakeholders through secured interfaces.

Provenance’s work with UK retailer Co-op demonstrates this principle. Their blockchain platform allows shoppers to scan QR codes on select products and access verified information about sourcing, environmental impact, and certifications—creating unprecedented transparency between brand and consumer.

Blockchain doesn’t just verify claims—it makes the verification process visible. That visibility creates accountability that simply doesn’t exist in traditional sustainability reporting.

Building Consumer Trust Through Blockchain Verification of Environmental Claims

Consumer trust is perhaps the most valuable currency in sustainable business. For example, a Nielsen global survey found that 81% of respondents said it is “extremely or very important that companies implement programs to improve the environment” (Nielsen, 2018). Additionally, a Kantar poll found that over 50% of consumers believe brands are misleading them with green claims, indicating widespread skepticism and low trust in environmental claims by companies (Kantar, 2023).

Blockchain addresses this trust gap through verification rather than assertion. By providing a mechanism for consumers to verify claims themselves, it fundamentally changes the brand-consumer relationship.

When consumers can verify sustainability claims independently, the dynamics of trust change. Brands don’t have to say ‘trust us’—they can say ‘verify it yourself.’

Early research suggests this transparency builds loyalty. The 2023 MIT State of Supply Chain Sustainability report found that products with blockchain-verified sustainability information translate into positive effects on consumer trust and operational efficiency (Correll and Betts 2023). MIT News and recent peer-reviewed studies confirm that blockchain can improve customer loyalty and trust, and may increase sales by making sustainability claims verifiable (Duan and Zhu 2024; Nygaard and Silkoset, 2023).

VeChain’s partnership with H&M’s brand COS provides a practical example. Selected garments feature blockchain-verified supply chain information accessible via smartphone. Customers can verify material composition, manufacturing conditions, and environmental impact—creating transparency around claims that were previously unverifiable.

Implementation Challenges: Moving From Blockchain Concept to Reality in Sustainability

Despite its potential, blockchain implementation for sustainability verification faces significant challenges that have limited adoption.

The technical barriers are substantial:

• High initial implementation costs
• Complex integration with existing reporting systems
• Limited blockchain development expertise
• Challenges in standardising verification protocols

According to Gartner research from 2018, only about 10% of blockchain proofs of concept eventually go into production, suggesting a high failure rate for early-stage blockchain initiatives. There’s a graveyard of blockchain pilots and in 2019, Gartner noted that “by 2021, 90% of current enterprise blockchain platform implementations will require replacement.” Thus, whilst the technology no doubt works, implementation and continuous redevelopment remain significant organizational and operational hurdles.

Beyond technical challenges, blockchain sustainability applications face environmental concerns of their own. Early blockchain implementations, particularly those using Proof of Work consensus mechanisms like Bitcoin, are notoriously energy-intensive.

However, enterprise blockchain platforms like Hyperledger Fabric and Corda, which are most commonly used for sustainability applications, use significantly less energy than public blockchains. These private or permissioned blockchains don’t require energy-intensive “mining” and are designed specifically for business applications. For instance, one study found that running a Hyperledger Fabric node in a small network setup consumed only a few watts per hour—comparable to running a typical business application server compared to public blockchains such as Bitcoin and Ethereum (when Ethereum used Proof of Work) estimated at around 143 TWh and 62.75 TWh per year respectfully. For context, this is comparable to the annual electricity usage of entire countries with millions of inhabitants like Bangladesh (Vladov, 2022).

The energy issue does remain nuanced, the enterprise blockchains being used for sustainability applications use a tiny fraction of energy, and many are transitioning to more renewable sources.

Strategic Approach to Implementing Blockchain for Sustainability: Starting Small for Maximum Impact

Organizations successfully implementing blockchain for sustainability verification share a common approach: they start with specific, high-impact claims rather than attempting to verify everything at once.

Nestlé’s blockchain journey exemplifies this strategy. The food giant began by verifying specific claims about a single product—Mousline instant mashed potatoes—focusing on farm practices and processing methods. After establishing proof of concept, they expanded to coffee, palm oil, and additional sustainability claims.

Research from Boston Consulting Group identifies key factors that determine blockchain’s effectiveness for sustainability verification:

Industry Characteristics for Successful Blockchain Implementation:

• Products with high sustainability risks or concerns show greater ROI
• Industries with strong regulatory or consumer pressure see faster adoption
• Categories where premium pricing depends on sustainability claims benefit most

Blockchain Implementation Approach for Success:

• Start with specific high-profile claims
• Collaborate within industry to establish verification standards
• Implement in phases with clear trust metrics
• Engage stakeholders early in the process

The Future Landscape: Toward Accessible, Standardized Blockchain Verification

Blockchain technology continues to evolve, addressing many current limitations. Key developments include:

• More energy-efficient consensus mechanisms
• Improved standardisation of verification protocols
• Enhanced interoperability between blockchain platforms
• User-friendly interfaces for consumer verification
• Integration with other technologies like IoT sensors for automated verification

These advancements are making blockchain verification more accessible, particularly for smaller organisations. “Blockchain as a service” offerings from IBM, Amazon, and Microsoft significantly reduce technical barriers to entry, while industry consortia are creating shared standards for sustainability verification.

Perhaps the goal is invisibility? The technology becomes so integrated that eventually consumers won’t know they’re using blockchain—simply that they can trust the sustainability information on their products because they can verify it themselves.

Beyond the Hype Cycle: Blockchain’s Future in Sustainability Verification

Blockchain has moved through the typical hype cycle for emerging technologies. After initial inflated expectations and subsequent disillusionment, the technology is now entering the “plateau of productivity” for sustainability verification.

As greenwashing concerns intensify and regulatory scrutiny increases, the value proposition for blockchain verification becomes more compelling. The EU’s Green Claims Directive and similar regulations worldwide are creating stronger incentives for verified sustainability claims.

While blockchain isn’t a silver bullet for sustainability verification, it does address some of the fundamental limitations in the current system by creating immutable, transparent records verified by multiple parties. For combating greenwashing and building consumer trust in sustainability claims, that’s truly impactful.

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