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Adidas adopts blockchain solution TrusTrace for material traceability and compliance

Last updated: Aug 22, 2022

Summary

TrusTrace, a Stockholm-based SaaS company, announced in March, 2022 the launch of its new blockchain-based solution for supply chain traceability – TrusTrace Certified Material Compliance. The company has an existing platform dealing with product traceability and supply chain transparency and considers its new innovation a one-stop-shop solution for material compliance. Sports brand Adidas is one of its first adopters and provided early input into its development in line with the company’s ambitious sustainability goals for the coming years.

Problem

Globally, the fashion industry produces almost four times the environmental impact of the airline industry, with 8% of global greenhouse gas emissions emanating from the production of apparel and footwear. The unsustainable ways in which fast fashion is produced is one of the leading causes of climate change. A lack of regulation and unchecked greenwashing from major companies only exacerbates its environmental impact. TrusTrace Certified Material Compliance aims to combat misinformation and improve transparency and traceability within the fashion industry.

Solution

Founded in 2016, TrusTrace offers an end-to-end product traceability platform for global fashion and apparel brands, centered around material compliance for both certified and non-certified materials. It gives brands granular visibility into product sustainability metrics. With industry leading certification and product mapping technology and automation, TrusTrace empowers brands and suppliers around the world to collaborate on product and materials traceability digitally with their SaaS product.

The solution provides a lot of information about a product’s material composition and supply chain transactions in one single place. Examples of the processes it can track are the calculation of material waste, a product’s origins, and the documentation of the percentage of certified vs non-certified material content. Hence brands can demonstrate their compliance with national and international standards and regulations.

TrusTrace developed its technology using a combination of AI, blockchain, IoT and software automation. This allows near-instantaneous updating of garment information, as well as the assurance that the details are immutable, traceable, and transparent. Other brands that TrusTrace has worked with include Fjällräven, Decathlon, Filippa K, and Coop.

Outcome

Within the first three months of using the platform, Adidas has documented 1 million transactions covering 10,000 materials and styles across 500 facilities, proving the scalability potential of this new solution.

In working with Adidas, TrusTrace is able to support the company’s ambitions to move toward working with 100% recycled polyester by 2024, and implementing sustainability-centric technology, materials, design and manufacturing across 90% of the products by 2025.