Responsible Sourcing via Blockchain in Mineral Supply Chains

Sammanfattning: Manufacturers and suppliers in the tech industry, trading and utilizing minerals, are often unable to conduct substantial supply chain due diligence, due to reasons such as lack of competence, the scattered spread of information and fluid nature of their supply chains. Declaring whether a product has been responsibly sourced, or whether it contains conflict minerals or not, is almost impossible. This study is an exploration of the potential role of blockchain in mineral supply chain management, as a supplementary tool for carrying out due diligence. Well-performed supply chain due diligence should demand continuous status records of various measures of social sustainability, identifying impacts on human well-being. So, how may a blockchain solution for traceability in a mineral supply chain contribute towards ensuring responsible sourcing? Blockchain provides traceability of transactions through its immutable chain structure, and knowing an asset’s origin is vital in order to carry out supply chain due diligence. While the blockchain network has the potential to provide information on the digitally registered flow of an asset, the validity of the information of the physical and social qualities of the asset remains dependent on the actor adding it to the blockchain, leading to an inherent problem regarding the interface between the digital and the physical world, in application of blockchain in supply chains. Through a background study and interviews with researchers and professionals, this study proposes a set of requirements to take into account while addressing responsible sourcing via a blockchain solution. The study finds that a blockchain alone cannot ensure responsible sourcing, and further provides insight into the challenges and opportunities present in the industry and discusses the suitability of potential solutions.