- VeChain’s Sunny Lu is advocating for blockchain as a way for corporations to drive their sustainability agenda.
- Blockchain technology offers a unique data transmission framework at a low cost and a viable reward scheme.
VeChain’s CEO and co-founder, Sunny Lu, recently outlined a path for businesses to achieve transparent sustainability. The VeChain CEO claims 2025 will redefine how the world perceives and attains true sustainability.
Growing Sustainability Acceptance and Challenges
Sunny Lu noted in a recent newsletter that global consumers increasingly prioritize sustainability in their consumption practices. PwC’s 2024 Voice of the Consumer Survey revealed that consumers prioritize sustainability, like traveling less and eating different foods.
While the public is willing to pay a premium for sustainable products, they must believe the product’s sustainability claims. Companies usually find it difficult and costly to verify products in a way that satisfies most consumers.
Lu believes the emergence of digital tracking and incentives can positively affect the issue. He cited an example where McDonald’s introduced a line of reusable cups during the holidays. Customers can monitor their usage and receive rewards for ongoing participation via the McDonald’s app.
The incentives drive ongoing use, while the technology tracks use over time. This gives McDonald’s real data that consumers can use to back up their claims. The VeChain CEO emphasized that this setup is essential as the European Commission has found issues in sustainability claims.
According to the Commission, about 42% of sustainability claims amounted to lies or, at best, symbolic gestures, a practice known as “greenwashing.” The typical user finds these practices intolerable and erodes confidence in upcoming sustainability initiatives.
The VeChain CEO advised businesses to utilize emerging data tracking, recording, and verification technology as they are more affordable than traditional methods. He mentioned some, including Near-Field Communication (NFC) technology, digital tracking, and blockchain.
NFCs and digital tracking make data collection much more efficient and automated. On the other hand, blockchains are immutable ledgers that are impossible to tamper or falsify.
Blockchain as a Solution to Sustainability Verification
Sunny Lu noted that some firms have already begun using blockchain to address sustainability while maintaining trust, transparency, and traceability. He highlighted that MugShot, the sustainability rewards app in the VeBetterDAO platform, rewards users for using reusable mugs instead of disposable ones.
Sunny Lu says businesses can adopt the MugShot model for other sustainability activities. He added that global consumers demand better standards for informed decisions.
Sunny Lu touts technology as the ultimate solution to sustainability challenges. He said businesses can utilize blockchain to create products with digital passports that contain verified information about every part of their creation and transport.
The CEO called for industry leaders to get on board the technology train. “The world’s biggest companies must begin implementing such processes and act as role models for the rest of the market,” says Sunny Lu.
As for VeChain, it is already creating social and environmental impact with its VeBetterDAO platform. VeBetterDAO has a real utility, incentivizing users who perform sustainable actions with the B3TR token.
