DefinePK

Abstract

The hunt for lithium, cobalt, and nickel, which are critical to powering the renewable energy transition, is overshadowed by a growing credibility crisis. While consumers and regulators demand ethical sourcing, traditional mineral supply chain systems fail to provide verifiable proof, allowing greenwashing to thrive in the face of documented environmental devastation, such as the 2.2 million liters of water consumed per ton of lithium mined in arid regions, as well as ongoing social harms, such as child labor in artisanal cobalt mines. This study pioneers a disruptive methodology for closing the accountability gap by seamlessly integrating blockchain technology with Environmental and Social Life Cycle Assessment (ESLCA). We created a Hyperledger Fabric-based traceability system that tracks cobalt from artisanal mines in the Democratic Republic of Congo (DRC) to refining hubs and electric vehicle batteries. It is dynamically linked to an ISO 14040/14044-compliant environmental impact assessment and UNEP/SETAC Guidelines for social impact quantification across five critical categories: water scarcity, human health, child labor, community displacement, and conflict financing. Our 18-month empirical analysis demonstrates that blockchain's cryptographic immutability reduces data tampering risks by 92% compared to traditional audits, while integrated ESLCA identifies hotspots with exceptional precision. DRC cobalt extraction accounts for 78% of overall supply chain socioeconomic impacts. Crucially, technology allows for real-time intervention, such as blocking shipments tied to health concerns. We show that mandatory use of this comprehensive methodology could cut fraudulent ESG claims in mineral sourcing by 40%, transforming opaque supply chains into auditable engines of sustainability. This study equips policymakers and business leaders with the methodological rigor and technology infrastructure required to make verifiable ethics the foundation of energy transformation.
Keywords: Blockchain Traceability, Environmental Life Cycle Assessment (LCA), Social Life Cycle Assessment (SLCA), Conflict Minerals, Ethical Sourcing, Supply Chain Transparency, Critical Minerals, ESG Verification, Cobalt Supply Chain, Sustainable Mining.