But new economic models are emerging, powered by technology innovation, that may provide an alternative. A COSTLY PAIR OF JEANS One such model is the circular economy. Rather than a linear economy of make, use, and dispose, a circular Consider the environmental impact of making one economy encourages maximum use and reuse of goods pair of blue jeans. The life cycle of the denim begins and materials by repurposing them at the end of each in cotton fields, often littered with toxic chemicals and stage of their service life. organophosphates that wreak havoc on the surrounding wildlife. The cotton gets spun into yarn using starch and This model combined with the help of blockchain and artificial caustic soda, which if run off into rivers, kills the aquatic intelligence, provides full visibility from the initial producer all life. And even if proper measures are taken, or the cotton the way through the supply chain to the end consumer. We is organically grown, the impact is still significant. In an call this the circular supply chain. The circular supply chain is analysis of its supply chain, Levi’s realized that creating a way of better connecting base-of-the-pyramid producers one pair of blue jeans requires almost 920 gallons and consumers through additional visibility and extended of water, 400 mega joules of energy, and expells 32 serialization of tracking. kilograms of carbon dioxide. That is the equivalent to running a garden hose for 106 minutes, driving 78 miles By connecting the consumer to the initial producer, the 5 and powering a computer for 556 hours. Creating blue consumer can consume responsibly and reward good jeans is no anomaly. A McKinsey analysis found that more production practices. For the initial producer, the rewards can than 90 percent of the environmental impact associated help re-align financial incentives and support good business across the consumer sector is embedded in supply and environmental practices, improve sustainability and 6 chains. reduce waste. Moreover, producers and distributors can more effectively manage their inventories by aligning their product with changing consumer demands. The potential of the circular supply chain enabled by blockchain and other technologies now make what once seemed impossible possible. Sources: (1) https://ssir.org/articles/entry/the_next_phase_of_business_sustainability# (2) https://www.nielsen.com/us/en/press-room/2015/consumer-goods-brands-that-demonstrate-commitment-to-sustainability-outperform.html (3) https://www.unilever.com/news/press-releases/2017/report-shows-a-third-of-consumers-prefer-sustainable-brands.html (4) https://www.sustainabilityconsortium.org/wp-content/2016-impact-report/ CONTENTS 44