1. Introduction
The “World Commission on Environment and Development” defines sustainable development as “filling the demands of the present without affecting future generations’ ability to fulfil their own needs” [
1,
2]. The 2030 Agenda for Sustainable Development Goal (SDG) globally identifies food and agriculture as key sustainable development sectors. In this context, the food supply chain (FSC) is inextricably linked to sustainability since output must be raised to satisfy the demands for the future, wherein rising competition for more limited resources is inevitable. According to the United Nations Environment Programme (UNEP) research, nearly one-third of the food produced for human consumption is wasted each year, amounting to more than 1.3 billion tons globally. More than 40% of losses in developing countries occur during the post-harvesting and processing stages, while more than 40% occur at the retail and consumer levels in developed countries (source). The study states that the lack of coordination and transparency among the supply chain partners leads to increased losses in the network.
Furthermore, large amounts of food are wasted at retail because of quality standards that emphasize appearance. The sustainable development goal (SDG) 12 focuses on responsible consumption and production by reducing global food waste. This includes the reduction of losses at retail and consumer levels and along the entire food supply chain. Thus, providing food while causing little or no damage to the environment and nature is a significant concern for agricultural scientists.
FSC manufactures are required to ensure timely delivery of high-quality products at low prices and low operating costs, to meet customer expectations. Many companies are also outsourcing parts of their supply chain activities to other companies and/or locating their manufacturing and distribution hubs in low-cost areas, thus, complicating supply chains even further. Due to the increasing complex supply chains, pollution levels have grown, resulting in global warming. Global greenhouse gas emissions from agricultural production currently account for 11% of the global total and have increased 14% since 2000, according to the World Resources Institute. The Intergovernmental Panel on Climate Change (IPCC), 2022 [
3] report warns that increasing emissions will drastically affect the globe. It is imperative to minimize the contributing factors to greenhouse gas emissions to minimize the effects of climate change and air pollution [
4]. Net zero is the concept which suggest that the carbon dioxide and the greenhouse gas level in the air should be close to zero [
5]. According to [
6], significant technical advancements can minimize CO
2 emissions in the production and supply chain process.
Traditional FSCs are distinguished by strong vertical integration and coordination among supply chain partners to increase efficiency and reduce emissions, such as by minimizing transaction, operational, and marketing costs, and meeting consumer demands for food quality, and safety [
7]. In light of the growing concern over sustainability, food safety, provenance, and contamination hazards, it is imperative to develop an effective traceability system that can track a food product’s provenance and compile all essential data about its movement transparently and securely [
8]. In the study of [
9], the authors states that inculcating sustainability in supply chains is crucial to increasing economic growth and accessibility. Achieving sustainability further leads to achieving net zero in FSC, which refers to reducing greenhouse gas emissions to near zero. The concept of net zero focuses on maintaining an ecological balance between producing greenhouse gas emissions and removing these gases from the atmosphere [
5,
10]. Manufacturers are encouraged to achieve sustainability, reduce carbon emissions, and reduce climate change by implementing net-zero concepts [
11]. Thus, blockchain technology can be adapted to inculcate net zero and sustainability in FSC.
As part of its sustainability management strategy, the FSC needs to improve tracking and authenticating information for identifying and addressing contamination sources [
12,
13]. Blockchain technology (BLCT), a decentralized and immutable technology, presents a pragmatic solution, ensuring traceability in complex food supply ecosystems and eliminating the need for a reliable centralized authority [
14]. Blockchains are represented by blocks and validated by cryptography. These blocks contain a timestamp and record the previous block’s hash value. These hash values are unique and tamperproof, which helps to prevent fraudulence and provides transparency in the chain [
15]. Through the decentralization of BLCT, SC members can reduce their operating time and costs, improve quality and boost efficiency [
13,
16].
Furthermore, it facilitates the creation of a transparent supply chain, which reduces the chances of fraud, product recalls, and product loss [
17]. Thus, BLCT helps to achieve sustainability in FSC by tracing the information on product origin, shelf life, lot details, quality details, transport, and storage monitoring [
13,
18]. In addition to improving sustainability, this technology is also energy efficient [
19,
20], and researchers are trying to increase the efficiency by changing the consensus algorithm from proof of work (PoW) to proof of stake (PoS) as it consumes less energy [
21]. BLCT is also used to ensure the transmission of real-time, accurate information among the entities in a supply chain, such as transparency, traceability, security, and irreversibility.
According to [
22], identifying accurate and relevant sustainability indicators may help consumers in solving challenges with product sourcing and distribution. Furthermore, FSCs are a primary priority, with blockchain committing to better certifications and sustainability standards, promoting organic food and assuring high-quality food product life cycles. Three pillars (environmental, economic, and social) of sustainability, also called the triple bottom line (TBL), have also been revealed to be strongly linked to BLCT [
23,
24]. By minimizing malpractices, technology can contribute to human rights compliance and safer work practices and add to social sustainability. Implementation of BLCT in FSCs also helps achieve environmental sustainability, improving supply chain performance [
25] by reducing carbon emissions, paperwork, wastage, and physical product transportation, further lowering global pollution levels [
26]. The authors of [
27,
28] state that blockchain is a promising technology that will change the future economy dramatically and may be adopted as a wide-ranging approach to achieve high levels of transparency and efficiency while reaching the goal of a more sustainable society while aspiring to achieve net zero along the FSC.
Thus, this study aims to understand the comprehensive implementation of BLCT in a sustainable FSC using a systematic literature review, identifying its benefits, challenges, and application by reviewing the existing knowledge and filling the knowledge gaps. It also focuses on how BLCT helps to provide food safety, security, and traceability in the network. The paper also discusses how BLCT helps to achieve the three pillars of sustainability and net zero in the FSC. In light of the discussion above, we identify the following research questions for this study:
Q1: What are the recent trends, benefits, challenges, and applications of BLCT in the FSC?
Q2: How is BCLT helping to achieve the triple bottom line (TBL) aspects of sustainability in the FSC?
Q3: How will BCLT help to achieve net zero through safety, security, and traceability in the FSC?
The rest of the paper is structured as follows. The methodology of the review process is discussed in
Section 2.
Section 3 includes a discussion of how blockchain helps to achieve the TBL.
Section 4 discusses the application of BLCT. The discussion and conclusion are summarized in
Section 5. Managerial insights and future research direction are explored in
Section 6 and
Section 7.
3. BLCT and Triple Bottom Line Aspects in FSCs
The TBL concept addresses the environmental, economic, and social aspects of the FSC. BLCT contributes to achieving these aspects by monitoring environmental data properly and reducing greenhouse gas emissions. Food supply networks worldwide emit approximately 13.7 billion metric tonnes of carbon dioxide equivalent each year [
90]. The most environmentally destructive greenhouse gases are produced by farming, over-usage of land, and transportation, which together act as the largest contributors of greenhouse gases in the FSC (FAO, 2021) [
84]. To avoid negative environmental consequences, blockchain might be used to optimize the usage of pesticides, fertilizers, antibiotics, and irrigation [
66]. Furthermore, blockchain contributes to environmental sustainability by facilitating adherence to ecological rules. In their paper, [
91] indicate that using blockchain increases environmental efficiency by minimizing carbon emissions and helps achieve profit. Thus, SDG 13 (climate action) can be achieved.
Traceability, transparency, accountability, and immutability are the essential elements for the economic and social dimensions of sustainability, as blockchain can assists in enforcing human rights and food security, reducing food waste and food recall, and identifying exploitation and fraud. These aspects are also important since they increase consumer trust and minimize financial exploitation and other risks [
92]. The authors of [
93] proposed the use of blockchain to shorten the time it takes to process food. They claimed that blockchain’s ability to track and trace previously unavailable data can be utilized to improve supply chain procedures, thereby reducing the time taken for a product to reach retail locations. This can make it easier to buy and use the item before it expires, which will reduce food waste [
23]. Smart packaging enabled by blockchain can also reduce food waste by providing more accurate information regarding the status of food products, preventing food from being discarded needlessly [
94]. In a crisis caused by contaminated food or food recalls, the point of contamination and the affected items may be readily recognized and eliminated, without the need to recall the entire line of products, saving the significant expense involved [
95]. Thus, blockchain will significantly impact the achievement of economic sustainability and can fulfil SDGs 9 (industry, innovation, and infrastructure) and 12 (responsible consumption and production).
Blockchains also promote social sustainability by adhering to fair-trade standards. In developing countries, blockchain could analyse what percentage of the price consumers pay for an item is returned to the farmer as well as address consumers’ concerns about social welfare and eco-friendly farming methods [
23]. Thus, BLCT fulfils SDG 8 (decent work and economic growth). For example, Coca-Cola and the U.S. State Department use BLCT in the sugarcane sector to minimize forced labour. Starbucks is experimenting with blockchain to track, trace and authenticate the ethical production of its coffee and to enhance customer knowledge about coffee-sourcing [
96]. In order to achieve sustainable development, stakeholders must be involved, the environmental, economic, and social contexts must be considered, and effective sustainability measures must be supported by effective decision-making [
97].
5. Discussion and Conclusions
Based on the analysis and critically evaluating the articles related to FSCs using BLCT, answers to the research questions, research gap, and recommendations are below.
Even though blockchain has been around for almost ten years, using BLCT in sustainable FSCs is still relatively fresh. Furthermore, while research leads the way in technology development, practical applications, and testing in FSCs are still in their infancy. The lack of clarity in rules and standards, as well as the scarcity of technical skillsets and digital literacy required to use BLCT, are stifling blockchain’s expansion in the agriculture and FSC markets in emerging countries. However, there has been a big boom in interest in BLCT during the last two years, as numerous corporations and academic organizations are striving to use this technology into the industrial, financial, agricultural, and societal sectors. Blockchain designs, applications, and business models are fast growing; they are distinguished by decentralized, open-source development and are viewed as disrupting conventional operators in various industries. Many agri-based industries have applied BLCT in their organization and benefited from it.
The study observes that integrating BLCT in FSCs provides greater visibility in SCs, increases transparency, improves food safety, and reduces food waste. In the case of halal FSCs and dairy FSCs, blockchain has increased transparency and benefited companies by ensuring safety and gaining consumers’ trust [
110,
111]. It also helps address the customers’ concerns about the origin of products, their safety and quality, by linking the information nodes [
112]. BLCT enhances the effectiveness and performance of the FSC through information exchange and transparency, thus reducing the lead time through digitized records and automated workflows. Using this technology, one can reduce operational costs and increase efficiency in the FSC. For example, firms can acquire detailed information on the shelf life of food products to manage their inventory and transportation better, improve profits and avoid waste [
93]. Thus, implementation of BLCT improves the profitability of both platform and supplier [
112]. By strengthening the immutability, traceability, and transparency within any transaction of the FSC, it also increases trust between its members. Our report also shows that blockchain might be used to decrease product waste and increase supply chain sustainability.
Although many FSC companies are integrating BLCT in their SC, it has been observed that the industrial applications are still in their pilot run and a mass-scale operation is yet to be operated. Because of blockchain innovation’s quick yet unpredictable speed, commercial organizations and government bodies find it challenging to decide on a strategy for adapting to BLCT. Another problem is integrating with legacy systems. In many cases, firms have invested years in developing their management systems. It is difficult to go from their current system to the new blockchain without affecting their existing operations. Furthermore, since the technology is transnational and decentralized, regulating it becomes difficult.
The study observes that before implementing blockchain, farmers must first gain a thorough understanding of the technology. Farmers’ major concern in many regions of the globe is survival; therefore, they concentrate their efforts on farming and lack competence in advanced technologies. Blockchain technologies also demand a high degree of computation; these resources are limited in developing countries, and implementation is arduous. In [
113] it is stated that adoption of BLCT in the supply chain requires standardization, organizational collaboration, and willingness to adopt the technology. As a result, there appears to be a divide in digital competency and access to BLCT between the industrialized and developing worlds. Some authors, however, mention a key point that the majority of such programs are in economically developed nations and hence, they do not address the fundamental problems of developing countries. The authors of [
114] emphasize linking technical, organizational, and external concepts for blockchain adoption. Effective collaboration is required to pique managers’ and leaders’ interest in adopting digital technologies to increase information and resource sharing, decision-making, and to build a synergy between the supplier and the manufacturer, consequently enhancing performance [
115]. The authors of [
116] conducted an online survey study which revealed that though the participants acknowledged the benefits of blockchain, they were divided on the likelihood of adoption.
Blockchain is a powerful tool for addressing supply chain sustainability and assisting with it [
86]. As a technology, blockchain is designed to improve sustainability and achieve net zero in the FSC by minimizing food waste and resource usage, quantifying and reducing carbon footprint, and promoting fair trading. BLCT also helps to resolve carbon emission by reducing transactions and supply–demand irregularities by continuously monitoring, tracking, and recording; simultaneously building trust on the way. For example, Walmart discovered that fresh imports, such as mangoes, might take up to four days to be scrutinized at the border [
117]. Hence, by tracking product movements, expediting product inspection, and thus extending shelf life, Walmart will be able to increase sales, simultaneously satisfying the SDG goal. The study also shows that blockchain might be used to decrease the carbon footprint by reducing emissions, paperless transactions, less human intervention, reducing product waste, and increasing supply chain efficiency. Thus, we can say that BLCT helps to achieve sustainability in the FSC and helps to fulfil the SDG 12 goal.
As the future economy strives to achieve net zero, sustainable production and consumption of products have become urgent concerns. Achieving net zero facilitates the achievement of sustainability and fulfilment of the SDGs. From the discussion above, we observe that BLCT helps to meet the triple bottom line aspect, which can further lead to net zero. Net zero implies replacing high-emission processes with low-emission ones [
11]. The literature study shows that the work related to applying net zero in FSCs is still dormant. Observing the benefits of BLCT, it has the potential to achieve net zero in FSCs, and future research in this direction will benefit the industries. Though a few studies focus on the sustainability of the FSC, connecting it to SDG goals will benefit the current scenario. The FSC being a very complex supply chain, all the partners of the supply chain need to work equally to achieve net zero.
6. Managerial Insights/Acumen
Based on the analysis of the paper it is observed that BLCT adoption in FSCs has a vast scope in the industry sector. This trend is driven by many factors, including food safety and security, food contamination and fraud challenges, an increase in credibility and efficacy in transactions within the FSC, and the openness and accuracy of food information management systems. It also helps to achieve sustainability, addresses the SDGs, and helps to achieve net zero. BLCT helps to achieve the triple bottom line aspect of sustainability by reducing carbon emissions, increasing productivity and efficiency, and building societal trust.
Regulators and government officials are seeking more innovations in blockchain adoption in order to achieve improved data openness and accountability while providing adaptable, cost-effective, and long-term sustainable solutions. As the paper’s analysis reveals, the transition process from existing technologies to blockchain is more of an intellectual transformation than a technological one. Companies or individuals must know and acknowledge the underlying process. The study reveals that adopting BLCT will help to address concerns regarding aging societies, food shortages, resource scarcity, urbanization, waste management, sustainability, and net zero.
Many food companies are collaborating with IBM and other platforms to use distributed ledger technology to improve their sustainability quotient, transparency, traceability, and speed of payments in their supply chains. Global food giants such as Walmart, Carrefour, Nestle, and Unilever are embracing BLCT to track products faster, trace product origins, ensure product safety, adhere to sustainability standards, attain the SDGs, and achieve net zero. BLCT also helps reduce food fraud and contamination as well as food recalls, for BLCT stores the data which will be visible to all supply chain members. BLCT is being incorporated in many FSC businesses to regain and reinforce consumers’ trust, acting as a “certificate of excellence”. The best example to be cited is Cargill, a global food corporation based in the U.S. that gained consumer trust by increasing the visibility of its product.
Since BLCT is a modern technology, there exists lack of regulations for its governance. It must be investigated how BLCT can be applied in FSC management on a global scale. BLCT is currently neither standardized nor regulated and government and organisations must take the initiative to standardize the technology. Provisions should be made to create awareness and inculcate information among consumers. To achieve sustainability and net zero in the FSC, government and companies must take the initiative and educate stakeholders on the benefits of adopting the innovative solution.
7. Future Research Direction
BLCT, a new technology, can be explored vastly in the FSC domain. A competitive market can lead to BLCT adoption as firms constantly seek to achieve sustainable solutions and competitive advantage. Since the world is moving toward achieving SDG goals and reducing carbon emissions, a study related to aligning SDG goals with BLCT adequately will add volume and depth to the subject. As per the study, BLCT can help achieve Goal 2 (zero hunger) by making the supply chain more productive, sustainable, and resilient, for solving long-term hunger challenges; Goal 3 (good health and well-being) by adhering to the quality standards and providing essential nutrients; Goal 9 (industry, innovation, and infrastructure) by investing in infrastructure and accelerating innovation, thereby leading to sustainable food systems worldwide; Goal 12 (responsible consumption and production) by reducing food waste and spoilage while empowering consumers to make conscious choices; and Goal 13 (climate action) by reducing carbon footprints and achieving net zero (UN Food System Summit, 2021). The analysis will allow researchers to study the impact of BLCT in achieving SDG goals in the FSC, which may further contribute to attaining net zero. Due to Net Zero’s relative newness, very little work has been undertaken, leaving a broad scope for future exploration.
Despite the fact that sustainability forms an overarching framework for much of the FSC research, by-products of the FSC must explicitly be considered along with the entire life cycle of a product in order to achieve net zero, not only from a current cost perspective, but also from a total cost perspective. Future research in this direction will help enhance the competitiveness and the survivability index of the FSC.