Enabling Sustainability Due Diligence in Value Chains Through DLT-Based Governance

Jan Zedel, Felix Eppler

2024

Abstract

The European Union’s Corporate Sustainability Due Diligence Directive (CSDDD) represents a transformative approach to ensuring sustainable and ethical supply chain practices. However, the directive introduces complexities and significant efforts in the compliance processes of affected companies. This paper explores the question of how decentralized resource pooling can lead to more efficiency and lower costs in the compliance processes of the CSDDD. We propose a novel solution leveraging distributed ledger technology (DLT), specifically a token-curated registry (TCR) solution augmented with shielded transactions to ensure participant anonymity and trust. Our proposed approach could reduce redundancies, increase transparency, and facilitate a more robust risk analysis over the whole value chain. Our paper follows a design science research approach where we (1) identify the challenges posed by companies that fall under the new CSDDD regulation framework, (2) define the objectives of a distributed ledger-based solution and (3) design and develop a technical framework based on a TCR to handle parts of the CSDDD in an efficient and cost-effective way, setting a precedent for future empirical studies and practical implementations in the field of distributed ledger-based information systems in the field of sustainability corporate governance.

Paper Citation

in Harvard Style

Zedel J. and Eppler F. (2024). Enabling Sustainability Due Diligence in Value Chains Through DLT-Based Governance. In Proceedings of the 26th International Conference on Enterprise Information Systems - Volume 2: ICEIS; ISBN 978-989-758-692-7, SciTePress, pages 696-702. DOI: 10.5220/0012633700003690

in Bibtex Style

@conference{iceis24,
author={Jan Zedel and Felix Eppler},
title={Enabling Sustainability Due Diligence in Value Chains Through DLT-Based Governance},
booktitle={Proceedings of the 26th International Conference on Enterprise Information Systems - Volume 2: ICEIS},
year={2024},
pages={696-702},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012633700003690},
isbn={978-989-758-692-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 26th International Conference on Enterprise Information Systems - Volume 2: ICEIS
TI - Enabling Sustainability Due Diligence in Value Chains Through DLT-Based Governance
SN - 978-989-758-692-7
AU - Zedel J.
AU - Eppler F.
PY - 2024
SP - 696
EP - 702
DO - 10.5220/0012633700003690
PB - SciTePress