GreenToken by SAP is a solution that aims to make the supply chain process more transparent by utilizing private blockchain technology. It also tracks the flow of plastic material production throughout the entire resource lifecycle. First built in the Asia-Pacific and Japan region in collaboration with the SAP.iO Venture Studio, the system is able to track plastics from raw resources through the manufacturing process, sale, and use of products, as well as through selection and pulverization on the way to recovery and recycling.

Highlighting yet another remarkable move in establishing stronger, sustainable, and intelligent manufacturing and supply chains through collective action, DIC Corporation, a leading chemicals company in Japan, is now using the SAP blockchain solution. The project’s goal is to significantly boost sustainable outcomes and increase circularity in the chemicals sector by effectively recovering plastic wastes.

A food packaging recycling program was launched by DIC Corporation and its partner firm in November 2020, combining new technology and collection methods to recover more products like polystyrene that are generally ineligible for material recycling. Utilizing GreenToken by SAP, DIC Corporation’s pilot program aims to trace raw resources along the supply chain from the first phase of material generation to production, inspection, and quality assurance.

Yuji Morinaga, Executive Officer and General Manager of the Packaging Materials Product Division of DIC Corporation, said that the demand for sustainable packaging has increased in response to growing levels of consumer awareness regarding the circular economy. Commenting on the project involving SAP’s cutting-edge technologies, Morinaga added:

“The work with GreenToken helps substantiate environmental claims and supports our mission to advance the recycling of plastics and build a completely circular process with chemical recycling.”

After the completion of the pilot, DIC and GreenToken plan to continue working together to assist the former company’s focus on increasingly pressing social implications and the creation of a sustainable future.

Expediting Shift to Circular Economy with GreenToken by SAP

GreenToken by SAP Co-Founder James Veale, GreenToken by SAP’s co-founder, explained that chemical recycling is an essential component in accelerating the transition to a circular economy; yet, plastic made from chemically recovered plastic waste material is indistinguishable from plastic made from traditional sources. Sharing more about the SAP blockchain technology solution, he said:

“Our solution proves that it really is circular plastic and provides complete, auditable supply chain transparency. That means more trust in recycling from customers and ultimately less waste in the environment.”

At the fourth China International Import Expo (CIIE), which took place in November 2021 at the National Exhibition and Convention Center in Shanghai, Veale earlier remarked that the audience’s reaction to the SAP solution was an “instantaneous hit.” The local team for the organization advertised the technology to specialists and leaders from various fields, such as the industrial machinery and components sector, consumer products industry, as well as the energy and natural resources segment.

Moreover, SAP APJ Chief Operating Officer Cathy Ward stated that SAP has made sustainability a central focus of its operations, and because the company believes it cannot solve this problem alone, it is collaborating with customers and partners to find solutions. She further shared in a LinkedIn post:

“Creating the future we want starts today and it’s fortunate that we have partners as forward-looking as James Veale, who co-founded and developed GreenToken by SAP with us. Being future ready is increasingly about building sustainable business processes, and companies who invest in sustainability are driving operating margins 3.7x higher on average, than those who don’t.”

Recently, GreenToken by SAP has also been recognized as the recipient of the innovation award in the 2022 Financial Review Sustainability Leaders competition in the field of Technology, Media, and Telecommunications. The organization achieves transparency throughout the supply chain by utilizing digital twin tokens that are stored on a blockchain.

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SAP.iO Venture Studio, a group committed to encouraging employee-driven innovation, continues to explore new products and build teams from the ground up to address some of the most pressing issues today. In 2019, GreenToken by SAP — a start-up focused on creating solutions for supply chain transparency and traceability — was added to the SAP network of employee-led ventures. The solution intends to provide organisations new levels of transparency through accurate, blockchain-based data and assist them in increasing visibility into the origins of their raw materials, as well as in building products with knowledge about how the resources were produced, particularly in dynamic, non-batch supply chain environments.

Sharing more about the initiative, GreenToken by SAP Co-Founder Nitin Jain shared:

“With GreenToken, we want to bring the same traceability and supply chain transparency to bulk raw materials that you get from scanning a bar or QR code on any consumer product. Our solution allows companies to tell what percentage of palm oil products they purchased from a sustainable origin and track it to the end consumer product.”

GreenToken by SAP: A Promising SAP.iO Venture

Last November 2021, GreenToken by SAP Co-Founder James Veale described the audience’s response to the solution as an “instantaneous hit” at the 4th China International Import Expo (CIIE) which was held at the National Exhibition and Convention Center in Shanghai. The group’s local team promoted it to experts and leaders who came from different sectors, including industrial machinery and components, consumer products, and energy and natural resources.

During that same year, GreenToken by SAP became a finalist in the Hasso Plattner Founders’ Award. Considering that SAP systems manage more than 77{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} of all manufactured goods worldwide, GreenToken by SAP is receiving more and more attention from SAP customers who are experiencing growing pressure to demonstrate to regulators as well as to their own customer base, that their supply chain processes concerning raw materials sourcing are at par with current industry standards.

Leveraging SAP Blockchain Technology

Furthermore, GreenToken by SAP is currently engaged in several pilot initiatives with companies involved in the chemical and palm oil industries. For instance, Unilever conducted a proof of concept in Indonesia to source over 188,000 tons of palm oil fruit, which resulted in a successful pilot. Golden Agri-Resources Chief Sustainability and Communications Officer Anita Neville stated that technology has contributed immensely in their efforts to improve supply chain visibility and transparency.

“Our participation in the GreenToken by SAP solution pilot with SAP and Unilever provided useful insights in how to successfully pass information between different actors in the supply chain,” Neville remarked.

Leveraging SAP blockchain technology, Unilever’s suppliers including Golden Agri-Resources were able to develop tokens that accurately reflect the movement of palm oil along the supply chain while also capturing the distinctive features associated with the material’s origin. According to Unilever, its industry-leading endeavours to achieve complete visibility of its supply chain were supported by GreenToken by SAP by tracking, verifying, and reporting data in near real-time.

Moreover, Unilever Chief Procurement Officer Dave Ingram explained that blockchain technology has the potential to help firms trace their supply chains and guarantee that the commodities they obtain respect the environment. Noting that the company has pledged to a deforestation-free supply chain by 2023, he added:

“We are encouraged by the promising results of our pilot with GreenToken by SAP, the latest building block in our tech-enabled approach to ensure a more traceable and transparent supply chain.”

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