How Security Matters is set to play a crucial role in the global transition to ESG supply chains
Link copied to
The company’s digital tracking platform is a proprietary solution where global demand is only going to increase in the years ahead.
Security Matters (ASX:SMX), a company focused on digitising physical objects on the blockchain to enable a circular and closed loop economy, has established a first-mover advantage with its digital blockchain solution for supply-chain management.
And in a presentation this week, the company highlighted how it’s positioned to play a central role in the future of business processes that meet ESG standards.
ESG (Environmental, Social, and Corporate Governance) investing is cited as the next major channel for global capital flows, as the world transitions to a low-carbon economy.
The ESG shift is already acting as a catalyst for major changes in business processes, with moves to decarbonise each input in the production of goods and services.
SMX’s technology can be applied at a molecular level on any solids, liquids or gas at any point in the supply chain, which makes it a market-leading technology for tracking inputs across a range of different materials.
That leaves it well placed as a central tool not just in the manufacturing supply chain, but in the ESG requirement for improvements in the circular economy for recycling and re-use.
As part of its presentation, SMX detailed the key steps it has already taken to prove out its capability for a range of applications.
From advanced plastics manufacturing to raw commodities, gold storage to fashion sustainability – SMX has deployed its technology in the field and secured key partnerships to drive adoption.
A good example of that is in plastics, where SMX last year signed a binding collaboration agreement with multinational chemicals giant BASF SE to develop solutions for plastics traceability and circularity.
And last December, SMX officially launched its flagship Sustainability Competence Centre for fashion brands – a platform to promote the use of recycled materials in the global fashion supply chain.
With its suite of global partnerships and large clients, SMX’s digital tracking technology is now positioned at the forefront of major market needs that need to be addressed within the framework of accepted ESG standards.
As a measure of market growth, a recent ETF launched by global funds giant Blackrock — which focused on US companies best placed for the shift to clean energy — saw the largest ever volume of day one inflows in its first 24 hours of trading.
In that context, SMX is a company which has built its entire business model on giving clients improved access “marking, tracking, measuring and digital platform technology to successfully transition to a low-carbon economy,” said Haggai Alon, CEO and founder of SMX.
“SMX’ technology is the leading global enabler in the transformation from linear to circular production, creating a closed loop economy for leading global brands. In doing so, it makes a sustainable economy achievable,” he added.
And with the increased adoption of its proprietary tracking technology across global markets, SMX is positioned to benefit from major ESG tailwinds over the next decade.
This article was developed in collaboration with Security Matters, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.