Fiat Chrysler (FCA) recently joined forces with the Responsible Sourcing Blockchain Network in a move to improve its sustainability efforts. The automaker will begin using blockchain technology to help ensure sustainable sourcing and production practices through audits that map the mining history of its raw cobalt supply.
The first of these blockchain-powered audits is set to begin early this year, and will help the company to reduce its potential use of unethically sourced cobalt. FCA’s goal is to purchase only cobalt – an essential component of its lithium-ion batteries – from mines that refrain from unethical practices that are harmful to the surrounding communities.
“[This] will propel our ability to have visibility into artisanal and small-scale mines,” said Carl Smiley, FCA’s Chief Purchasing and Supply Chain Officer, “allowing us to better manage the social and environmental impacts of our business.”