SMX blockchain tech to protect, improve worldwide natural rubber supply chain
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Special Report: Security Matters will use its singular blockchain technology to improve the natural rubber supply chain, reducing the environmental and socio-economic problems that come with sourcing this increasingly valuable commodity.
Security Matters (ASX:SMX) – a company focused on marking and digitising objects to facilitate the development of the global circular economy – has become a member of the Global Platform for Sustainable Natural Rubber (GPSNR).
GPSNR is a voluntary membership organisation that brings together organisations, companies, societies, institutions, and government agencies to help foster improvements which have socio-economic and environmental benefits across the natural rubber supply chain.
SMX joins GPSNR with a tangible and measurable solution that will help ease some of the historic problems sourcing natural rubber has posed. These are legion and have included deforestation and biodiversity loss, labour rights, living and working conditions, gender equality, land grabbing, cruel margins for farmers, low and fluctuating prices, and lack of access to equity.
With SMX’s blockchain technology and digital platform, companies will be able to unlock the ability to verify the origination of the natural rubber, certify it is from an ethical source and improve the transparency of the natural rubber supply chain.
SMX’s technology – The Intelligence of Things – is a comprehensive ecosystem of track and trace, supply chain integrity and quality assurance solutions that can be used for raw materials and end products.
The technology leverages a hidden, chemical-based barcode system with a reader to identify these codes, and a blockchain record to store and protect the ownership of data.
The SMX tech could be vital in reducing the litany of problems associated with the growing natural rubber production industry.
The report found the Covid-19 pandemic has significantly influenced the natural rubber market, with disruptions in supply of raw materials. Many top players in the tyre industry, such as Michelin, Goodyear, and Continental AG, have been forced to shut down their operations.
The delay in farming activities and latex collection have further compounded the issue with trading restrictions leaving shortages across shifting global markets.
Natural rubber is preferred over synthetic rubber due to its high tensile strength and vibration dampening properties, along with tear resistance.
This makes natural rubber critical for industries from construction and automobiles. The growth of the global automobile market alone will drive demand for natural rubber production.
Then there’s the pandemic-led spike in demand for latex products particularly in the medical sector – also a factor likely to intensify pressure across the rubber market.
SMX keeps getting globally recognised for its collaborative approach to building a scalable platform as we transition to the circular economy, most recently New York’s 2021 Global Waste Management & Recycling Digitalization Technology Innovation Leadership Award from Frost & Sullivan.
The winning companies demonstrated best practice in various fields of technology and innovation. The nod reinforces SMX’s position among the leading tech innovators worldwide.
But, it’s testament also to SMX’s breadth of activity in the recycling innovation space over the past 12 months, as it partners with leading global companies and organisations.
Along with the development of commercial partnerships spanning industrial production, fashion, and food agriculture, SMX is focusing on building a collaborative approach with key stakeholders.
The company is part of a global taskforce comprising 14 of the world’s largest electronics companies to develop a shared vision for the circular economy in economics.
SMX also opened a Sustainability Competence Centre for fashion brands, providing them with a transparent shared platform for recycling their goods back into high-quality materials and merchandise.
GPSNR director Stefano Savi said Security Matters will be a valued member of the organisation.
“GPSRN is delighted to welcome Security Matters as our newest member,” Savi said.
“We look forward to collaborating with SMX and other GPSNR Members to develop solutions to improve socioeconomic and environmental performances of the natural rubber supply chain.”
SMX Founder and CEO Haggai Alon said the company was looking forward to being involved in improving natural rubber farming globally.
“As GPSNR members, we can progress towards a more innovative, sustainable, and tangible way to enhance natural rubber farming along with helping the rubber value chain players achieve their ESG objectives and enable a successful transition to a truly circular economy,” Alon said.
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.