By Lynda Kiernan

Australia-based digital blockchain platform OpenSC has raised US$4 million in Seed funding to track the supply chains of foods that are known to be most susceptible to social injustice risks, such as palm oil and seafood. 

Impact investor Working Capital, an early-stage venture fund focused on the development of ethical supply chains and the protection of vulnerable workers, and Christian Wnger, a leading driver of technological innovation in Switzerland, and founder of digitalswitzerland backed the investment, which will be used by the startup to further develop its digital platform, and in turn help people and businesses avoid illegal, unethical, or environmentally damaging products.

“Working Capital is delighted to add OpenSC to our global portfolio of leading startups that we believe will drive positive change, promote responsible business practices, and improve the lives and well-being of millions of vulnerable workers who produce the goods we use and consume every day,” said Ed Marcum, managing director of Working Capital. “The complexity and opacity of global supply chains can allow forced labor and human exploitation to happen unseen by corporations, and tools like OpenSC can shine some much-needed light.”

“Supporting OpenSC’s mission is important to me because the work they are doing is creating positive and scalable outcomes for people and the planet,” said Christian Wenger. “With three world-leading organisations bringing their capabilities together – from WWF’s decades of conservation expertise and BCGDV’s impressive track record of building successful ventures, to Working Capital’s focus on human rights and ending modern slavery – the potential of OpenSC to make a positive impact is incredibly exciting.”

OpenSC is the culmination of a collaboration between the World Wide Fund for Nature Australia and BCG Digital Ventures, the global corporate venture, investment, and incubation arm of Boston Consulting Group. Together, WWF brings 30 years of leadership in supply chain evolution and the reduction of environmental impacts in more than 100 countries, with BCG’s expertise in corporate venture and developing blockchain traceability solutions.

By attaching a unique ID with each item at its point of origin, either when it is caught, or when it is harvested, OpenSC allows users to verify the sustainability and ethical handling of each product; to trace the advancement of each product through the supply chain; and to then provide this information to consumers.

“We’re on a mission to help producers, retailers, and consumers choose products that are good for the planet and good for workers,” said Markus Mutz, director, BCG Digital Ventures, and incoming CEO of OpenSC. “We’ve reached a point where technology has evolved and can be harnessed to create a whole new level of transparency and rebuild trust. At OpenSC, we believe this will revolutionize the way we humans consume and, therefore, the way that we humans produce.”

Since its launch in January at the World Economic Forum held in Davos, OpenSC has conducted a successful international pilot with Austral Fisheries, a part of Maruha Nichiro Group, one of the largest seafood companies in the world, that tracked Austral Fisheries’ Glacier 51 Patagonian Toothfish product. It also has announced a collaboration with Nestlé, the first global CPG company to employ blockchain for such purposes, to trace milk production from farms in New Zealand to consumers in Middle Eastern markets, and soon to track palm oil sourced in the Americas.

“OpenSC gives companies and consumers a new level of visibility into supply chains,” said Dermot O’Gorman, CEO of WWF-Australia. “Enabled by data and insights, companies will be able to make responsible sourcing decisions that support producers who respect human rights and use environmentally sound practices. And consumers will be empowered with trustworthy, tamper-proof information about the individual products they are buying.”

“As BCGDV’s first social impact venture, OpenSC signifies our strong commitment to helping businesses drive sustainable and ethical operations through the application of leading technologies such as blockchain,” said Paul Hunyor, partner and managing director of BCG Digital Ventures. “With OpenSC, we were able to leverage our expertise in corporate venture building to create a platform that helps solve issues of environmental degradation of habitats and species, as well as social injustice and human rights issues. The platform also makes good business sense by helping to optimize business supply chain operations, reduce costs, and enable producers to manage issues such as product recalls.”

 

-Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.