SMX Launches Tech Solution to Enable Centralized Data-Driven Reporting For EUDR Compliance in the Natural Rubber Industry
SMX (Security Matters) PLC has launched a new blockchain-based solution for centralized, data-driven reporting to ensure compliance with the EU Deforestation Regulation (EUDR) in the natural rubber industry. This technology aims to address challenges related to ethical sourcing, child labor, use of conflict minerals, and chemical usage. By transitioning from manual to digital reporting, the system reduces compliance costs, lowers reputational risks, and enhances supply chain productivity.
The comprehensive platform integrates data from multiple sources, enabling real-time monitoring and reporting of supply chain activities. Customizable compliance dashboards provide real-time updates and alerts, supporting EUDR's stringent due diligence requirements.
SMX's solution ensures traceability, transparent reporting, and regulatory compliance, aiding companies in delivering deforestation-free and legally produced natural rubber products.
- Launch of a new blockchain-based solution enhances traceability and compliance in the natural rubber industry.
- Transition from manual to digital reporting reduces compliance costs and lowers reputational risks.
- Real-time monitoring and reporting improve supply chain productivity and transparency.
- Customizable compliance dashboards support stringent EUDR due diligence requirements.
- None
Insights
SMX's newly announced solution for the natural rubber industry addresses a growing need for compliance with the EU Deforestation Regulation (EUDR). Given the rising global concern over deforestation and environmental sustainability, this technology can significantly enhance the transparency and traceability of supply chains. By moving from manual auditing to a digital blockchain system, companies can not only reduce compliance and audit costs but also showcase commitment to ethical practices. In the short-term, this might attract environmentally conscious investors and customers, improving brand reputation.
Over the long-term, the ability to provide irrefutable proof of sustainability and ethical sourcing could become a differentiator in the market. However, the effectiveness of this solution will depend on its adoption rate within the industry and the robustness of the blockchain technology in handling real-time data. Investors should also consider the initial implementation costs and the technology's scalability.
The potential impact on the natural rubber market could be substantial, but only if SMX's technology proves to be user-friendly and cost-efficient for both large companies and smallholders. The customization and integration capabilities with third-party systems are notable strengths, setting a new standard for supply chain transparency.
From a technological standpoint, SMX's platform leverages cutting-edge blockchain technology to ensure data integrity and transparency. The integration of satellite imagery, on-ground sensors and risk assessment documents provides a comprehensive view of the supply chain. The use of blockchain to create an immutable record of transactions addresses many security and transparency issues that have plagued traditional supply chains.
In terms of usability, the customizable compliance dashboard stands out. It allows stakeholders to monitor real-time updates and alerts, which is important for maintaining compliance with EUDR regulations. The API integration for secure and low-cost information sharing is also a significant advantage, potentially reducing the complexity and cost of adoption for businesses.
However, the technology's long-term success will depend on its scalability and the company's ability to continuously update and improve the system. Another consideration is the platform's capability to handle large volumes of data without performance degradation, which is vital for real-time reporting and compliance. Investors should keep an eye on SMX's future developments and adoption rates to gauge the technology's market penetration and success.
New York, New York--(Newsfile Corp. - July 3, 2024) - SMX (Security Matters) PLC (NASDAQ: SMX) (NASDAQ: SMXWW), a pioneer in digitizing physical objects for a circular economy, proudly announces their new solution to deliver a centralized blockchain reporting system for supply chain data, focusing on ethical sourcing, origination, and brand authentication in the Natural Rubber industry.
SMX technology addresses the challenges faced by multinational organizations in meeting compliance and reporting standards related to:
- Ethical sourcing of materials
- Child labour
- Use of conflict minerals
- Use of chemicals & pesticides
- Location and identification of farms and farmers
- EU Deforestation Regulation (EUDR) reporting
The key benefits include the ability to move marked commodities downstream in a traceable, transparent, and compliant manner, linked to an irrefutable digital blockchain record. This transition from paper-based and manual auditing to real-time digital reporting helps reduce compliance and audit costs, lower reputational risks, and enhance productivity across supply chain operations.
Integrated Supply Chain Monitoring Platform
The Company developed a comprehensive platform for natural rubber producers and suppliers to monitor their supply chains in real-time. This digital platform is designed to integrate data from various sources, including polygon information, satellite imagery, on-ground sensors, risk assessment document management and blockchain records, to provide a holistic view of supply chain activities from tree to finished product in one centralised platform (tree, producer, compounder, manufacturer, brand and recycler).
Customizable Compliance Dashboard
The dashboard is designed to provide real-time updates, alerts, and comprehensive reports for internal and external stakeholders to support the EUDR due diligence statements and reporting requirements at the shipment level. The dashboard will project information from the SMX blockchain and all validated 3rd party data to ensure the highest levels of data integrity. Furthermore the platform would capture the latest deforestation and forest degradation reporting and ties it to the physical movement of natural rubber from tree to finished product. All connections to 3rd party systems are linked via SMX API integration, aiding secure and low cost information sharing.
EU Deforestation Regulation (EUDR) Compliance
The UN Food and Agriculture Organization (FAO) estimates that 420 million hectares of forest were lost to deforestation between 1990 and 2020, with EU consumption representing around
Once the new rules are enforced, all relevant companies must conduct strict due diligence if they place on the EU market, or export from it, commodities like palm oil, cattle, soy, coffee, cocoa, timber, and rubber. These commodities are major drivers of deforestation due to agricultural expansion. SMX's tech solution is designed to empower organizations to deliver transparent, auditable, and compliant solutions to meet these EU regulations.
SMX Technology Advantages
SMX technology provides a comprehensive solution that ensures:
- Traceability spanning the entire ecosystem of the marked material from origin to final product - without altering the commodities' original characteristics.
- Location-based reporting on material and quality
- Adherence to industry best practices
- Transparent reporting throughout the supply chain
- Regulatory & compliance reporting on supply chains and products from origin to final product sale through a secure digital platform
- Enabling near real-time EUDR reporting with information held on the blockchain, satisfying the minimum five-year document storage required by EUDR regulations
Addressing the Complex Supply Chain of Natural Rubber
It has been reported that the natural rubber consumed in the EU is mostly imported with a significant amount produced by small holders. SMX believes that this makes ensuring transparency and traceability extremely challenging. Unsustainable rubber production can lead to deforestation, biodiversity loss, and adverse impacts on smallholders' living conditions, local communities, and workers' rights.
SMX believes that the inclusion of natural rubber in the EU Deforestation Regulation will benefit companies with transparent supply chains, such as those that use SMX's solutions. The new regulation sets strong mandatory due diligence rules for companies that place relevant products on the EU market or export them, ensuring deforestation-free and legal production.
SMX "Plantation to Market" Technology Platform
The integration of SMX technology in the natural rubber supply chain is expected to enable end-to-end traceability and transparent output in terms of Chain of Custody from downstream sources to finished goods sales. Brands will be able to tangibly authenticate and provide irrefutable proof of quality, quantity, and origin, including ethical sourcing and sustainable farming practices, for credible ESG reporting to stakeholders, customers, auditors, and regulators.
SMX technology can address the challenge of ESG criteria, ethical sourcing, and EU deforestation compliance, allowing for digitizing the supply chain in the "first mile" and enabling the movement of natural rubber downstream along with a digital record. The SMX marker can scan and report on the origin location where it was added and first scanned, allowing companies to report in near real-time on all aspects of natural rubber products at any stage of the supply chain.
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About SMX
As global businesses face new and complex challenges relating to carbon neutrality and meeting new governmental and regional regulations and standards, SMX is able to offer players along the value chain access to its marking, tracking, measuring and digital platform technology to transition more successfully to a low-carbon economy.
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References:
¹ Regulation (EU) 2023/1115 of the European Parliament and of the Council of 31 May 2023
Web: https://eur-lex.europa.eu/eli/reg/2023/1115/oj
² EUDR - EU Deforestation-free Regulation
Web: https://www.global-traceability.com/eudr-eu-deforestation-free regulation/?gclid=CjwKCAjw44mlBhAQEiwAqP3eVpS-C0Xy0-XBmk5NwtADuaaSFA1hj6fO6KybKtk9RIjFU_N4h4IEWhoC0eIQAvD_BwE
³ EU adopts new rules for deforestation-free products
Web: EU adopts new rules for deforestation-free products | White & Case LLP (whitecase.com)
Forward-Looking Statements
The information in this press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "forecast," "intends," "may," "will," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release may include, for example: successful launch and implementation of SMX's joint projects with manufacturers and other supply chain participants of steel, rubber and other materials; changes in SMX's strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; SMX's ability to develop and launch new products and services, including its planned Plastic Cycle Token; SMX's ability to successfully and efficiently integrate future expansion plans and opportunities; SMX's ability to grow its business in a cost-effective manner; SMX's product development timeline and estimated research and development costs; the implementation, market acceptance and success of SMX's business model; developments and projections relating to SMX's competitors and industry; and SMX's approach and goals with respect to technology. These forward-looking statements are based on information available as of the date of this press release, and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing views as of any subsequent date, and no obligation is undertaken to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include: the ability to maintain the listing of the Company's shares on Nasdaq; changes in applicable laws or regulations; any lingering effects of the COVID-19 pandemic on SMX's business; the ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities; the risk of downturns and the possibility of rapid change in the highly competitive industry in which SMX operates; the risk that SMX and its current and future collaborators are unable to successfully develop and commercialize SMX's products or services, or experience significant delays in doing so; the risk that the Company may never achieve or sustain profitability; the risk that the Company will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; the risk that the Company experiences difficulties in managing its growth and expanding operations; the risk that third-party suppliers and manufacturers are not able to fully and timely meet their obligations; the risk that SMX is unable to secure or protect its intellectual property; the possibility that SMX may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties described in SMX's filings from time to time with the Securities and Exchange Commission.
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FAQ
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