Trado is a consortium of major corporates, banks and start-ups that is testing whether blockchain and other technologies can help unlock financial incentives that reward sustainability in supply chains. The project is trialling the concept by using a shared data system for tea farmers in Malawi that supply Unilever and UK-based supermarket Sainsbury’s. The same system will also track the materials produced for the tea’s packaging, provided by global sustainable wood fibre products company, Sappi.
The technology has been developed by a collective of start-ups including blockchain-based supply chain services firm, Provenance, and Halotrade, which uses smart contracts and algorithms to convert supply chain data into preferential pricing terms that will feed into participating banks’ systems; Barclays, BNP Paribas, Rabobank and Standard Chartered. Meridia, the land rights documentation provider, will collect and verify data on the ground in Malawi.
Through access to cheaper levels of working capital, money will be released for increased investment in smallholder communities and farms allowing them to become more productive without needing to convert more land. More than 10,000 Malawian tea farmers could be reached by the pilot alone, standing to make savings in accessing working capital.
The Business Partnership Fund is providing a grant of £339,200 to this project.
Partners: The University of Cambridge Institute for Sustainability Leadership (CISL) is the convenor of Project Trado and the consortium members are Barclays, BNP Paribas, Halotrade, IDH - the Sustainable Trade Initiative, Meridia, Provenance, Rabobank, Sainsbury’s, Sappi, Standard Chartered and Unilever.