Meeting Consumer Demands for Transparency in Ethical Sourcing
In a world where consumers are no longer satisfied with vague claims of “ethical” or “sustainable,” businesses are embracing technology-driven solutions to provide unprecedented transparency in procurement. From blockchain to AI and innovative trackability tools, companies are revolutionising how raw materials and products are traced back to their origins. For procurement professionals, this rising demand for transparency is no longer optional—it's an imperative that directly impacts brand trust, consumer loyalty, and competitive edge.
The Rise of Traceability Tech: From Source to Shelf
Blockchain Leading the Way
Blockchain remains the backbone of traceability, offering immutable records of every step in the supply chain. By decentralising data and ensuring records cannot be tampered with, blockchain gives companies the power to trace raw materials from origin to final product.
IBM Food Trust: This blockchain platform is helping brands like Nestlé and Walmart track food from farm to table. For example, Walmart uses blockchain to trace mangoes and leafy greens within seconds—cutting the time from days to mere moments and enhancing food safety.
Everledger: Known for its work with luxury goods, Everledger uses blockchain to trace diamonds, wine, and luxury products. It ensures authenticity and prevents unethical sourcing practices, such as conflict diamonds.
AI-Enabled Supply Chain Visibility
Artificial intelligence tools integrate with IoT devices and blockchain to track the movement of goods in real-time, offering complete visibility across every stage of the supply chain.
Higg Index: Used by fashion giants like Nike and Patagonia, this platform offers insights into environmental and social impacts throughout the supply chain. By analysing data, companies pinpoint inefficiencies and highlight areas for improvement.
Trackability Apps for Ethical Sourcing
New tools are emerging to meet rising consumer expectations for full transparency.
Provenance: This app allows businesses to share verified information about their products’ origins. From Fairtrade cocoa to organic cotton, Provenance gives consumers a clear picture of where their goods come from and who made them.
TrusTrace: This platform works with brands like Adidas and Filippa K to trace materials like leather, wool, and cotton. It integrates blockchain with machine learning, helping procurement teams monitor suppliers, reduce waste, and confirm sustainable sourcing.
Companies Setting the Gold Standard for Traceability
Patagonia: This outdoor apparel giant leads the way in ethical sourcing. Through their Footprint Chronicles, Patagonia maps their entire supply chain, showcasing where raw materials come from, where clothes are made, and the human impact behind every step.
Unilever: Known for its bold sustainability goals, Unilever uses blockchain to track palm oil and tea. The company shares real-time updates with consumers, ensuring visibility into its suppliers and reducing environmental harm.
Stella McCartney: This fashion label is pioneering sustainable luxury by embracing digital tools like eDNA testing and blockchain tracking. Stella McCartney ensures that leather and wool used in its collections come from verified sustainable farms.
Why Transparency Matters in 2025
Transparency isn’t just a buzzword; it’s a competitive advantage. According to recent studies, 70% of consumers say they are willing to pay more for products with verified sustainable and ethical sourcing. As supply chains grow more complex, businesses that invest in trackability tools will see significant benefits:
Enhanced brand reputation and trust.
Compliance with stricter regulations on sourcing, such as the EU Corporate Sustainability Due Diligence Directive.
Reduced risk of supplier fraud or unethical practices.
Looking Ahead: Innovations Shaping the Future
Emerging technologies promise even greater transparency:
Digital Twins: Virtual models of supply chains allow businesses to simulate and monitor sourcing processes in real time. This ensures transparency while optimising operations.
eDNA Technology: Companies like Oritain are using environmental DNA to verify the geographic origin of raw materials, such as cotton, coffee, or wool, adding an additional layer of authenticity.
Smart Packaging: NFC chips and QR codes integrated into product packaging allow consumers to scan items and view detailed sourcing information.
The Role of Procurement Leaders
For procurement professionals, transparency demands strategic action. Partnering with tech providers like Provenance or Everledger, conducting rigorous supplier audits, and integrating AI-driven tools are essential steps to align with consumer expectations. Procurement leaders must champion ethical sourcing, ensuring their supply chains are not only efficient but fully accountable.
Final Thoughts
As ethical sourcing and sustainability become central to procurement practices, the companies that embrace cutting-edge trackability tools will lead the charge in 2025. From blockchain platforms to digital transparency apps, the future of procurement lies in technologies that can prove—not just claim—ethical sourcing. For procurement professionals and brands alike, the time to invest in transparency is now.