Bext360 and the ESG Paradox: Leveraging AI, blockchain, and IoT for Supply-Chain-Level ESG Measurement
Daniel Jones and Niki Lewis of Bext360 are struggling to persuade a potential corporate client to use their software as a service (SaaS) solution that focuses on Environmental, Social, and Governance (ESG) metrics. In a meeting with a big-box retailer, initial enthusiasm for the platform’s capabilities, including measuring Scope 3 emissions, turned to caution when a senior corporate attorney raised concerns about legal liability. The deep transparency offered by the platform could expose the company to risks related to their suppliers' actions, leading the executives to postpone their decision. Jones and Lewis now face a paradox. Their technology offers in-depth ESG oversight, which companies should theoretically want. However, this transparency also introduces risks and responsibilities that potential clients may be hesitant to assume. The challenge lies in persuading clients to see the transformative potential of their ESG practices despite these risks.
1. Explore how Bext360's use of IoT sensors, machine learning algorithms, and blockchain technology can offer ESG transparency from point of origin to end consumer. Students should be able to articulate the technological aspects that enable deep supply chain visibility and discuss why, despite these advanced capabilities, companies might be hesitant to adopt such systems due to increased potential for liability and responsibility.
2. Scrutinize how a high level of transparency, enabled by technology, changes a company's risk profile and ethical accountability. Students should explore the implications of assuming full responsibility for their entire supply chain, considering the complexities this introduces in relations with suppliers, distributors, and potentially even customers.
3. Examine the legal ramifications companies could encounter by adopting a platform like Bext360’s. Students should be equipped to discuss the role of corporate legal advisors in shaping ESG initiatives and how pending or existing legislation might influence these decisions.
4. Investigate how companies like Bext360 can navigate the paradox of providing a service that simultaneously presents both opportunities and challenges. Students should discuss the factors a company should weigh in its strategic decision-making process when benefits are inherently tied to potential risks
