5-11. Achieving Chemical Substance Traceability with Blockchain Technology

Blockchain technology is gaining attention as a way to enhance chemical substance traceability, dramatically improving transparency and reliability in EHS (Environmental, Health, and Safety) and supply chain management. Chemical substances are subject to strict international regulations, requiring companies to comply with Safety Data Sheets (SDS), REACH regulations, and GHS classification. Traditional paper-based or fragmented digital management systems have been hampered by challenges like the risk of data tampering and delayed information sharing. By using blockchain, companies can accurately and securely record and track the entire lifecycle of a chemical substance, from manufacturing to use and disposal.

1. How Blockchain Manages Chemical Substances

Blockchain uses a decentralized ledger to share and record transaction data across multiple nodes. In the chemical supply chain, stakeholders—such as manufacturers, transporters, distributors, end-users, and waste handlers—participate by immutably storing their transaction history. This mechanism makes it possible to track in real-time which chemical substance, from which batch, is following which route.

2. Benefits of Enhanced Traceability

Strengthening the traceability of chemical substances is expected to yield the following benefits:

• Improved compliance: Enables swift adherence to international regulations like REACH and RoHS.

• More accurate risk management: Allows for the immediate identification of a substance's supply route in the event of an accident or misuse.

• Supply chain transparency: Helps companies fulfill their accountability to customers and investors, contributing to their ESG (Environmental, Social, and Governance) rating.

• Centralized data: Provides a single source of accurate information, eliminating reliance on paper or disparate systems.

3. Challenges and Solutions for Corporate Implementation

Challenges for implementation include the cost of system investment and the need to establish standardized rules among all stakeholders. Although blockchain is known for data transparency, protecting confidential information is also necessary. Therefore, adopting a permissioned blockchain is recommended to appropriately manage access rights. Furthermore, integrating the system with existing ERP and EHS management systems can reduce the practical burden and enhance the benefits of implementation.

4. Future Outlook

Internationally, joint projects on chemical substance management are progressing, and the push for standardization is accelerating. For multinational corporations and manufacturers involved in imports and exports, transparent chemical traceability will become a competitive advantage. Furthermore, amid growing environmental regulations and a focus on sustainability, it will directly contribute to building trust with investors and customers.

Conclusion

Blockchain technology ensures the traceability of chemical substances, helping companies comply with regulations, manage risk, and increase corporate value. The use of digital technology is becoming essential for modern EHS management, and blockchain is undeniably positioned as one of its core technologies.