By Paola Mineiro* and Thiago Amparo**
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In recent years, blockchain technology has stood out as a powerful tool, not only in the financial sector but also as a driver of transparency and accountability across various fields. Its ability to transform corporate social responsibility, particularly in matters of diversity, equity, and inclusion (“DEI”) and environmental, social, and governance (“ESG”), has gained attention worldwide. In Brazil, these efforts are even more significant, as companies seek innovative ways to build trust and ensure data integrity in their ESG and DEI initiatives.
Companies and non-governmental organizations (“NGOs”) have more often used ESG principles.[1] This movement also extends to a shift in mindset about DEI, with companies seeking to promote more diverse and inclusive environments.[2] This Article seeks to provide an analysis of cases in which companies in Brazil have used blockchain technology in DEI initiatives and ESG reporting.
Part I reviews ESG and DEI scholarship relating to the use of blockchain technology to add trust and transparency to data, focusing specifically on Brazil. Part II presents a series of examples of social enterprises that have already used blockchain technology for DEI and ESG purposes in Brazil. One key case study involves the Okan ESG company, a joint initiative by Terra Firme and OnePercent, which markets itself as “a comprehensive package that includes expert report advisory, blockchain registration for on-chain data integrity, capacity-building in crypto for autonomous data management, and ESG-focused educational resources.”[3] Part III presents examples of other for-profit companies that have also utilized blockchain technology in some of their operations to meet ESG principles. In Part IV, the Article concludes with an overview of lessons learned from these initiatives.
This Article does not provide a comprehensive list of DEI or ESG initiatives that use blockchain technology in Brazil, but rather, a list of suggestions based on research and conversations with professionals in the field. The purpose of this research is to shed light on some of the opportunities and challenges presented by the use of this technology for DEI and ESG purposes.
I. ESG, DEI, and Blockchain: A Look at the Literature
In this Section, the Article highlights the major academic discussions about the intersection between ESG, DEI, and blockchain technology with a special focus on Brazil. This Section is not a systematic literature review; instead, it is a starting point for the analysis of the relevant case studies. It provides insights into the literature focused on blockchain technology and ESG and DEI initiatives.
Companies are increasingly recognizing the benefits of adopting ESG practices, not only for their positive impact on the environment and society but also for enhancing the companies’ reputations among consumers and investors.[4] Stakeholders are demanding more transparent and comparable disclosures that represent a more holistic assessment of company performance.[5] Furthermore, the implementation of DEI policies brings positive impacts, as ethnic and cultural diversity within leadership teams has been correlated with greater profitability despite increasing concerns about the strength of the business case for diversity.[6]
At the same time, significant technological innovations have emerged such as blockchain technology, which provides systems for registering and validating relevant data to all parties involved.[7] This data includes information on carbon emissions, natural resource usage, labor practices, and social impacts, facilitating supply chain traceability, certification of sustainable products, funding for environmental projects, and the financial inclusion of marginalized communities.[8] Blockchain technology also offers opportunities to improve transparency and trust in corporate data,[9] thereby reducing fraud.[10] This new technology can be used in various other ways, like supply chain tracking, digital identity management, electronic voting, and token issuance.[11]
In the blockchain space, tokens are used to represent assets, utilities, or claims within specific projects.[12] Their existence is justified by the ability to create digital scarcity.[13] The divisibility, ease of use, and tradability of tokens make them ideal value containers, allowing for quick and efficient transfers between agents, who then hold the rights represented by the token.[14]
By using smart contracts on a blockchain, companies can create tokens representing specific ESG performance measures.[15] Smart contracts are digital agreements on a blockchain that automatically execute their terms when specific conditions are met, eliminating intermediaries and providing immediate certainty for all parties involved.[16] They can automate various workflows, such as transferring funds or registering vehicles, and update the blockchain to ensure data immutability and restricted access.[17] Participants in smart contracts establish from the outset how transactions are represented, create governing rules, consider exceptions, and outline dispute resolution processes.[18] In this context, blockchain technology offers an innovative solution to improve the transparency and traceability of companies’ ESG practices[19] through the issuance of blockchain-based tokens when relevant ESG criteria are satisfied in a smart contract. By issuing such tokens representing specific ESG performance metrics, companies can provide a verifiable way to demonstrate their commitment to sustainability.[20] This commitment is exposed through ESG reports, which can also be based on data issued through blockchain technology.[21]
ESG reports play a crucial role in assessing companies’ ESG performance, as well as in making responsible investment and consumption decisions.[22] Unlike ESG reporting, traditional sustainability reporting systems can lack standardization, reliability, and transparency of data, and the difficulty of independent verification can lead to inaccurate and incomplete reports.[23] By creating a decentralized data registry, blockchain technology has the potential to enhance the transparency, integrity, and traceability of sustainability reports.[24] Additionally, smart contracts can automate data collection, verification, and auditing processes, making them more efficient and reliable for ESG reporting purposes.[25] Despite these benefits, the global adoption of blockchain technology faces challenges related to the operability of the technology across different platforms and regulation of the technology among countries.[26]
Overall, the adoption of blockchain technology in companies in Brazil could bring significant benefits for addressing environmental and social concerns. By considering ESG and DEI principles, the use of this technology promotes confidence and transparency throughout the production chain. Additionally, it provides greater control and transparency over data related to ESG impacts.
II. Case Studies from Brazil on ESG, DEI, and Blockchain
This Section presents case studies demonstrating how Brazilian companies are using blockchain technology for ESG and DEI purposes. The methodology for selecting these companies was based on conversations with various industry stakeholders in Brazil.[27] The list includes: (1) Educar+, a technology project in the Complexo do Chapadão (Chapadão Complex); [28] (2) Impact NFTs, an ESG consultancy by Nossa Terra Firme for the Bitcoin market; [29] (3) ReFi DAO and ReFi Spring, environmental technology initiatives based on blockchain;[30] (4) H.E.R. DAO, an initiative of women builders and founders;[31] and (5) Okan ESG, a company that uses blockchain technology for ESG purposes.[32] Table 1 below presents a summary of the main uses of blockchain technology by the aforementioned actors.
A. Educar +
The Educar+ initiative was started in 2017 by a student with the aim of providing opportunities to children and teenagers from the Complexo do Chapadão in Anchieta, Rio de Janeiro, to transform their perspectives on society.[33] By providing an environment that promotes study, creativity, care, fun, and safety for children in the favela, Educar+ seeks to expand the worldviews and possibilities of these children through access to education and culture, encouraging a critical understanding of society.[34] In fact, blockchain-based games, non-fungible tokens (“NFTs”), and decentralized finance (“DeFi”) have inspired a group of children aged seven to eleven living in the Complexo do Chapadão to attend classes at the Blockchain Academy, an educational initiative by the largest exchange in Latin America.[35]
B. Impact NFTs
Impact NFTs focuses on financing projects with positive social, cultural, environmental, and developmentally sustainable impact.[36] The digital assets record and enumerate impact initiatives in the physical world, converting traditional expenses into assets and collectibles that finance important social and environmental causes.[37]
C. ReFi DAO
ReFi DAO is part of a movement connecting local communities with a global network of startups to collectively work towards planet regeneration, which refers to the restoration of the planet in the wake of the climate crisis and social injustice.[38] Its mission is to develop strategic services and public goods for the regenerative finance (“ReFi”) ecosystem, including education, support for resource mobilization, and empowerment through online platforms, multimedia, and community coordination.[39] The organization aims to uplift communities committed to addressing the climate crisis and social injustice, striving for a just transition to a zero-emission economy by 2050 and directing trillions of dollars toward this transition.[40]
D. H.E.R. DAO
H.E.R. DAO is a decentralized global organization that aims to positively impact the lives of marginalized populations.[41] Its goal is to sustainably diversify the blockchain ecosystem, promoting comprehensive innovations and increasing revenue potential.[42] It aspires to lead the blockchain space as a launch platform for women-led ventures.[43]
E. Okan ESG
The Okan ESG platform offers an integrated solution for analysis, action plans, and transparency in ESG management with the promise of reducing the costs of these activities by up to forty-five percent.[44] Developed through a partnership between consultancy Nossa Terra Firme and blockchain technology company OnePercent, the platform leverages blockchain technology to ensure greater security and credibility in ESG metrics.[45] Okan was created to address the problem of lack of transparency and the inadequate updating of information by companies and funds, which continue to hinder investors’ access to reliable ESG data.[46]
Blockchain technology is considered a crucial tool to resolve these issues, enabling decentralized audits and providing more consistent and long-lasting data.[47] According to Iara Vicente, founder of Nossa Terra Firme, the Okan ESG platform seeks to build a more transparent ESG database, going beyond corporate narratives and offering greater security for both companies and investors.[48] The goal is for truth to be the heart of ESG, fostering positive and sustainable impacts while mitigating negative ones in the corporate environment and society.[49]
III. Other ESG, DEI, and Blockchain Companies
There are a number of other companies not specialized in societal development or environmental preservation that utilize blockchain technology to meet ESG objectives across various industries. Nestlé, for instance, is one among many leveraging technological innovations to achieve ESG goals, focusing on ESG ethics.[50] The company, which has been tracing the origin of all its coffee since 2019, now uses blockchain for consumers to track the product’s journey.[51] A QR code on the packaging provides access to a platform featuring text, photos, and videos that document the product’s journey from the farm, through intermediaries and distribution centers, to the consumer.[52]
Meanwhile, GreenPlat is creating a blockchain-based solution to improve security in waste management processes for public and private organizations.[53] Through software called PlataformaVerde, the startup enables customers to control and track waste throughout the production chain, from creation to final disposal, in a sustainable manner.[54] This traceability not only facilitates regulatory compliance but also helps companies meet their sustainability goals, directly contributing to improvements in their ESG performance indices by reducing environmental impact, encouraging accountability, and promoting ethical waste management.
Additionally, Renner, one of Brazil’s largest fashion retailers, has launched a new collection of jeans made from sustainably certified cotton tracked using blockchain technology.[55]
AMBEV is a Brazilian beverage manufacturer established in 1999 through the merger of the century-old breweries Cervejaria Brahma and Companhia Antarctica.[56] Today, AMBEV is one of the largest beverage producers in the world.[57] In partnership with the NGO Voz das Comunidades, AMBEV launched Beats Comunidade NFT, offering thirty digital collectibles for sale.[58] This initiative aims to position the brand as a cultural icon, with funk music being one of its platforms.[59]
Another company operating in this sector is BR Polen, which functions as a sort of free market for waste, formalizing buying and selling processes through a digital platform.[60] BR Polen has not only enabled companies and industries to acquire waste as raw material but has also established a credit market for reverse logistics.[61] In partnership with Greenpeople, BR Polen has offset more than 170 tons of packaging, preventing the emission of 6.33 tons of CO2 into the atmosphere.[62]
Datum TI is a technology consulting firm that has developed digital solutions for twenty-four years, bolstering growth for individuals and businesses alike.[63] Recently, the firm announced a special gift for its employees who have worked in the company for over a year as part of the Green Code Datum program: a token representing a sustainable reforestation tree.[64] Each tree was planted in Cana Verde, Minas Gerais, as part of the firm’s commitment to evolving ESG practices, initiating decarbonization of its operations, and exploring Web 3.0.[65]
Ambify is directly involved in the carbon credits sector and transforms reductions in greenhouse gas emissions into tradable carbon credits.[66] In the carbon credit market, one carbon credit is equivalent to one ton of carbon dioxide removed from the atmosphere.[67] This company, like Datum TI, aims to popularize and democratize access to environmental compensation, engaging individuals and companies in building a low-carbon economy.[68] Both of these entities ensure transparency and registration of all carbon credits available on their platform, using blockchain technology to ensure system reliability.[69]
Finally, Hashdex has developed BITH11, a “green” bitcoin exchange-traded fund (“ETF”) that offsets the carbon footprint of the fund’s bitcoins.[70] The asset manager, in partnership with the Carbon Credit Institute of Germany, offset more than three tons of CO2 in 2022 alone.[71]
IV. Risks and Opportunities: Lessons Learned from Initiatives in Brazil
This Section explores the lessons learned from various initiatives in Brazil that utilize blockchain technology for DEI and ESG purposes. First, it addresses the regulatory risks associated with these technologies, particularly concerning data protection laws such as Brazil’s data protection legislation and the recent legislative bill on AI. These considerations are compared to developments in key markets like the United States and the European Union. Next, this Section highlights regulatory opportunities, focusing on recent advancements in ESG standards and technology regulation, including the European Union’s Corporate Sustainability Reporting Directive and the White House Blueprint for an AI Bill of Rights. Ultimately, the lessons derived from Brazilian initiatives emphasize how blockchain technology can serve as a tool for promoting DEI and enhancing ESG practices, providing valuable insights for stakeholders navigating this evolving landscape.
In Brazil, blockchain technology is being used in different ways to promote DEI and ESG principles and explore the potential of this technology in driving equality and sustainability. The insights gained from these initiatives highlight how blockchain technology can be utilized in education and culture to expand access to rights. Additionally, as demonstrated by Okan ESG, blockchain can help make ESG processes more equitable by increasing transparency around corporate governance, social impact, and environmental practices, thereby preventing greenwashing and other distortions of facts.[72]
One use of blockchain technology is to educate vulnerable groups, in particular, marginalized youth. Educar+ demonstrates that access to education can be transformed through technology, which, in turn, fosters creativity and critical thinking. Young people participating in the projects established by Educar+ are encouraged to create NFT artwork, promoting a deeper understanding of blockchain technology and its uses. AMBEV, with its digital collectibles initiative, shows how cultural engagement can be leveraged to advance social causes within marginalized youth groups.
Another use of blockchain technology is to bolster fundraising for social impact initiatives. Impact NFTs shows how digital assets can convert traditional expenditures into funding for social projects. Similarly, ReFi DAO exemplifies how local communities can leverage global networks to address climate and social issues. Another important example is H.E.R. DAO, which emphasizes the need for representation and support for women-led initiatives in the blockchain space.
An obvious but highly important use of blockchain technology is to enhance transparency. In this context, Nestlé’s implementation of blockchain to track coffee origins highlights how transparency can increase consumer trust and promote ethical sourcing. Likewise, GreenPlat demonstrates how blockchain can improve transparency in waste management processes. Renner’s use of blockchain to track sustainable cotton production reflects how the fashion industry can promote ethical sourcing and production.
Finally, blockchain technology can be specifically useful for protecting the environment. Datum TI’s reforestation tokenization initiative emphasizes how companies can engage their employees in sustainability efforts, providing them with a token representing a sustainable reforestation tree. Ambify’s approach to carbon credits shows how blockchain can make environmental compensation accessible to individuals and businesses, promoting collective action towards a low-carbon economy. Hashdex’s green bitcoin ETF illustrates how financial products can be designed to mitigate environmental impacts through a green bitcoin. In parallel, BR Polen’s platform illustrates how blockchain can formalize and democratize access to waste markets, promoting sustainable and ethical practices.
In the regulatory context, Brazil has made progress in drafting laws and regulations concerning data protection and technological governance.[73] The use of technology in foreign trade is regulated by Decree No. 10,550, which was signed by President Jair Bolsonaro and Minister of Economy Paulo Guedes on November 24, 2020.[74] Decree No. 10,5000 amended Decree No. 6,759, which regulated customs activities and the inspection, control, and taxation of foreign trade operations.[75] However, additional regulation of the technology, as well as oversight by competent authorities, is urgently needed. Thus, when considering the lessons learned from initiatives in Brazil regarding the use of blockchain technology to achieve DEI and ESG goals, it is essential to adopt a comprehensive approach that takes into account technical, social, cultural, and regulatory aspects to ensure that these technologies contribute to a more inclusive, sustainable, and ethical future.
When examining blockchain and ESG initiatives in the United States, it is crucial to first outline the broader legislative framework that governs these areas. The United States has established several key regulatory developments, such as the White House Blueprint for an AI Bill of Rights,[76] a non-binding policy initiative developed by the Biden administration, which acknowledges that systems, algorithms, and data could reinforce gender, race, and class inequalities.[77] This initiative highlights five fundamental principles aimed at protecting citizens’ rights amidst the growing reliance on data-driven systems: (1) safe and effective systems, (2) protections against algorithmic discrimination, (3) data privacy, (4) notice and explanation, and lastly, (5) human alternatives, consideration, and fallback.[78]
The first principle indicates that systems should be developed with input from diverse communities and experts and undergo rigorous testing and continuous monitoring to ensure their safety and effectiveness.[79] Inadequate data should not be used, and independent evaluations should be published. The second principle establishes that systems should be designed and used equitably, avoiding discrimination based on characteristics protected by law.[80] Equity assessments and disparity testing should be ongoing. The third principle asserts that users should have control over their data, which should only be collected when necessary and with appropriate consent.[81] Additional protections are necessary for handling sensitive data and data from young people, and uncontrolled surveillance should be avoided.[82] The fourth principle emphasizes the need to provide information to the public about the use of automated systems and offers clear and accessible explanations about how and why these systems affect their lives.[83] The fifth principle underscores the option to seek human alternatives and recourse mechanisms in cases of failures or adverse impacts of automated systems.[84] Such regulatory advancements reflect the United States’ effort under the Biden administration to address ethical and societal concerns tied to technological innovations.
Similarly, the European Union has demonstrated leadership in implementing robust legislative measures that govern blockchain technology, ESG, and technological advancements generally. The Corporate Sustainability Reporting Directive, which came into effect on January 5, 2023, updates and strengthens the requirements for social and environmental disclosures.[85] This regulation aims to provide investors and stakeholders with the necessary information to evaluate companies’ impacts on people and the environment.[86] It also helps investors assess financial risks and opportunities related to climate change and sustainability issues.[87] Additionally, companies can expect reduced reporting costs in the medium to long term due to the standardization of required information.[88] By setting clear and standardized reporting guidelines, the European Union seeks to enhance transparency and promote responsible investment across its member states.
Conclusion
Brazilian initiatives leveraging blockchain technology for DEI and ESG purposes highlight the potential of this technology to promote equality and sustainability. This Article shows how blockchain can be utilized in fields such as education and culture to expand access to rights, as well as make ESG processes more transparent and fair so as to avoid engaging in misleading practices like greenwashing. Therefore, the lessons learned from Brazilian initiatives, along with existing international regulations, underline the importance of an integrated and robust approach to the adoption of blockchain technology and other technological innovations in the context of DEI and ESG, promoting more just and sustainable development.
|
Table 1: Blockchain Initiatives in Brazil |
||
| Organization | Purpose | Relation to ESG/DEI |
| Educar+ da Play4change[89] | Brazilian organization that facilitates access to education and culture for children and teenagers from low-income backgrounds | The NFT Collection Chapadão Metaverse involves blockchain-based games, NFTs, and DeFi, where children participating in the project create NFT artwork. The environment promotes study, creativity, fun, and safety, aiming to broaden the perspectives of children from the favela through access to education and culture and encourage a critical understanding of society. |
| ReFi DAO and ReFi Spring[90]
|
Organizations that connect local communities with a global network to collectively work towards the regeneration of the planet | ReFi DAO and ReFi Spring develop strategic services and public goods for the ReFi ecosystem, such as education, fundraising support, and events. |
| H.E.R. DAO[91] | Global decentralized organization with the mission of positively impacting the lives of marginalized populations | H.E.R. DAO’s goal is to sustainably diversify the blockchain ecosystem, promoting comprehensive innovations and increasing revenue potential. It aims to be a launch platform for ventures led by women in the long term. |
| Okan ESG[92] | Platform formed through a coalition of Black-owned Brazilian companies whose expected results include increasing the ability to generate audits in a decentralized manner, extending the duration of registered data, and effectively utilizing this data in practical matters | By using blockchain technology, Okan ESG aims to increase accessibility to ESG data and make it more transparent to reflect companies’ positive practices in a tangible way. The platform intends to move away from excessively manual ESG reports and avoid the risk of greenwashing or social tokenism—practices involving false claims about reducing environmental or social impacts. |
| Nestlé[93] | Transnational company in the food and beverage sector originating in Switzerland | Nestlé utilizes blockchain for consumers to discover products’ origins. A QR code on packaging leads to a platform with text, photos, and videos showing a product’s journey from the farm, through intermediaries and distribution hubs, until it reaches the consumer. |
| GreenPlat[94] | Brazilian technology company developing a solution to provide more security in the waste management processes of public and private entities | Through software called PlataformaVerde, GreenPlat enables customers to control and track waste throughout the production chain, from creation to disposal, in a sustainable manner. This contributes to the company’s development in relation to ESG indexes. |
| Renner[95] | One of Brazil’s largest fashion retailers | Renner recently launched a new collection of jeans made from sustainably certified cotton, using blockchain technology to track the production of the collection and verify claims of sustainability. |
| AMBEV[96] | Brazilian beverage company with operations in sixteen countries across the Americas | In partnership with NGO Voz das Comunidades, AMBEV launched Beats Comunidade NFT seeking to position the brand as a cultural staple with digital collectibles, offering for sale a total of thirty collectibles. |
| BR Polen[97] | Brazilian “green” startup company | BR Polen is a credit market for reverse logistics through a digital platform. It allows companies and industries to purchase waste as raw material. In partnership with Greenpeople, BR Polen has offset more than 170 tons of packaging, avoiding the emission of 6.33 tons of CO2 into the atmosphere. |
| Datum TI[98] | Brazilian technology company | Datum TI announced a special gift for its employees who have worked in the company for over a year: a token representing a sustainable reforestation tree, as part of the Green Code Datum program. Each tree was planted in Cana Verde, Minas Gerais, representing the company’s commitment to evolving ESG practices, initiating the decarbonization of its operations, and exploring Web 3.0. |
| Ambify[99] | Brazilian carbon offset platform | Ambify is involved in the carbon credits sector. It ensures transparency and registration of all carbon credits available on the platform, using blockchain to ensure system reliability. |
| Hashdex[100] | Brazilian company managing crypto assets | Hashdex launched the world’s first crypto ETF in 2020. It developed the BITH11, a “green” bitcoin ETF that offsets the carbon footprint of the fund’s bitcoins. The asset manager, in partnership with the Carbon Credit Institute of Germany, offset more than three tons of CO2 in 2022. |
* Paola Mineiro is a lawyer with a Master of Laws from the Pontifical Catholic University of Campinas in Brazil. She holds a Bachelor of Law from the same institution. She is an assistant researcher at the Center for Racial Justice and Law at Fundação Getúlio Vargas in São Paulo. She is currently pursuing a postgraduate degree in ESG at Pontifical Catholic University in Minas. Additionally, she is a Legal Advocate at the Council for the Development and Participation of the Black Community in Campinas. Her email is paolamineiro@gmail.com.
** Thiago Amparo is a professor of international law and human rights at the Law and International Relations schools at Fundação Getulio Vargas in São Paulo. He holds a master’s and doctorate degree in international law from the Central European University in Austria. He is the founder and coordinator of the Center for Racial Justice and Law at Fundação Getulio Vargas, where he has worked for many years as a diversity coordinator. In 2023, he taught as a visiting professor at the School of International and Public Affairs at Columbia University in New York and completed a postdoctoral fellowship at New York University in 2021. He is a consultant and speaker on inclusion, diversity, and equity, as well as ESG issues. He contributed to the founding of the Legal Alliance for Racial Equity. He writes weekly in Brazil’s leading newspaper, Folha de S.Paulo, and is a member of its editorial board and that of Revista Piauí, and he is also part of the advisory councils of the Tide Setubal Foundation and the non-governmental organization Sou da Paz. His email is thiago.amparo@fgv.br.
[1]. See generally Individual Investors’ Interest in Sustainability Is on the Rise, Morgan Stanley (Jan. 26, 2024), https://www.morganstanley.com/ideas/sustainable-investing-on-the-rise [https:// perma.cc/4MWU-5WVX].
[2]. Amber Keister, Metrics that Matter: ESG and DEI Work Together to Create Sustainable Business Success, Diversity Movement (Mar. 21, 2023), https://thediversitymovement.com/metrics-that-matter-esg-dei-work-together-create-sustainable-business-success/[https://perma.cc/663U-FNW4].
[3]. OKAN, https://okan.app/platform/ [https://perma.cc/TD96-MRCE].
[4]. Melissa Velasco Schleich, Do ESG Metrics Impact Financial Performance in Brazil? (May 25, 2021) (Ph.D. dissertation, Escola de Administração de Empresas de São Paulo da Fundação Getulio Vargas) (on file with Sistema de Bibliotecas da Fundação Getulio Vargas).
[5]. Rachel R. Doubledee et al., The Case for Increased Corporate Disclosure: An Examination of Transparency, Trust & Taxonomy, in 36 Amplify 20 (2023).
[6]. Oriane Georgeac & Aneeta Rattan, Stop Making the Business Case for Diversity, Harv. Bus. Rev. (June 15, 2022), https://hbr.org/2022/06/stop-making-the-business-case-for-diversity (last visited Oct. 16, 2024).
[7]. What Is Blockchain?, McKinsey & Co. (June 6, 2024), https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-blockchain [https://perma.cc/6XXB-7KQU].
[8]. Catherine Mulligan et al., Blockchain for Sustainability: A Systematic Literature Review for Policy Impact, 48 Telecomm. Pol’y, Mar. 2024, at 1.
[9]. Alexandra Andhov, Corporations on Blockchain: Opportunities & Challenges, 53 Cornell Int’l L.J. 1, 16 (2020).
[10]. Mulligan et al., supra note 8, at 4.
[11]. See Andhov, supra note 9.
[12]. Luis Oliveira et al., To Token or Not to Token? Tools for Understanding Blockchain Tokens 1 (University of Zurich 2018).
[15]. See Yang R. Miranda et al., Enhancing Corporate Social Responsibility with Blockchain-Based Trackable ESG Tokens, 6 Workshop em Blockchain: Teoria, Tecnologias e Aplicações 112, 113 (2023).
[16]. What Are Smart Contracts on Blockchain?, IBM, https://www.ibm.com/topics/smart-contracts [https://perma.cc/2WZE-Y5TF].
[19]. See Miranda et al., supra note 15, at 116.
[22]. See Adam J. Sulkowski, Sustainability (or ESG) Reporting: Recent Developments and the Potential for Better, More Proactive Management Enabled by Blockchain (Nov. 18, 2021) (unpublished chapter) (on file with the Social Science Research Network).
[26]. See Andhov, supra note 9.
[27]. The authors would like to specially thank Iara Vicente, founder and CEO at Nossa Terra Firme, for her insights on blockchain and social impact for this Article. More on the work done by Vicente is available at https://www.linkedin.com/in/iara-vicente/?originalSubdomain=br (last visited Jan. 27, 2025).
[28]. Quem Somos, Educarmais, https://www.educarmais.net/quem-somos [https:// perma.cc/5KKF-9NTZ].
[29]. Mercado Bitcoin e Tropix lançam NFTs de Impacto que Beneficiam Causa Indígena no Brasil, Portal do Bitcoin (Jan. 26, 2024, 4:38 PM), https://portaldobitcoin.uol.com.br/mercado-bitcoin-e-tropix-lancam-nfts-de-impacto-que-beneficiam-causa-indigena-no-brasil/ [https:// perma.cc/HHB3-MST7].
[30]. See ReFi Dao, https://www.refidao.com/ [https://perma.cc/46N4-8AEU]; see also ReFi Spring, Dandelion, https://dandelion.events/o/refi-spring [https://perma.cc/A9LM-DQFM].
[31]. H.E.R. DAO, https://www.her-dao.xyz/ [https://perma.cc/22XL-AJVW].
[32]. OKAN, supra note 3; Ana Luiza Prudente & Madson Pomponet, A Verdade Tem que Ser o ‘Coração’ do ESG, Folha De S.Paulo (Sep. 26, 2023, 10:00 AM), https://www1.folha.uol.com.br/colunas/papo-de-responsa/2023/09/a-verdade-tem-que-ser-o-coracao-do-esg.shtml [https://perma.cc/6CUT-TBS6].
[33]. Quem Somos, supra note 28.
[35]. Mercado Bitcoin, “Metaverso Chapadão” Leva Educação e Inclusão Financeira a Comunidades com Apoio do MB, Valor (Nov. 8, 2022), https://valor.globo.com/patrocinado/mercado-bitcoin/noticia/2022/08/11/metaverso-chapadao-leva-educacao-e-inclusao-financeira-a-comunidades-com-apoio-do-mb.ghtml [https://perma.cc/J3UX-LJNB].
[36]. Mercado Bitcoin e Tropix Lançam NFTs de Impacto que Beneficiam Causa Indígena no Brasil, supra note 29.
[38]. About ReFi DAO, ReFi DAO, https://www.refidao.com/about [https://perma.cc/ 9ZBX-SV4E].
[41]. Our Organization, H.E.R. DAO, https://www.her-dao.xyz/organization [https:// perma.cc/5S3U-G7S5].
[44]. OKAN, https://okan.app/ [https://perma.cc/6ZQW-DECU].
[45]. Prudente & Pomponet, supra note 32.
[50]. Julia Moioli, Blockchain no Café? 5 Inovações Tecnológicas que Estão Revolucionando o ESG, Tilt (Oct. 13, 2022, 2:30 PM), https://www.uol.com.br/tilt/noticias/redacao/2022/10/13/5-inovacoes-tecnologicas-que-estao-revolucionando-o-esg.htm [https://perma.cc/NW84-NJXR].
[53]. Isaac de Oliveira, Startup Usa Blockchain para Fazer Gestão de Resíduos para Empresas e Governos, Pequenas Empresas & Grandes Negócios (Jan. 17, 2023, 8:01 AM), https://revistapegn.globo.com/um-so-planeta/noticia/2023/01/startup-usa-blockchain-para-fazer-gestao-de-residuos-para-empresas-e-governos.ghtml [https://perma.cc/U7VW-UR59].
[55]. Renner Utiliza Blockchain para Rastrear Nova Coleção de Jeans com Algodão Sustentável, Exame, https://exame.com/esg/renner-utiliza-blockchain-para-rastrear-nova-colecao-de-jeans-com-algodao-sustentavel/ [https://perma.cc/CT3J-AMPQ].
[56]. Sobre a Ambev, Ambev, https://www.ambev.com.br/sobre-ambev [https://perma.cc/ DG4E-2KQT].
[58]. Gustavo Bertolucci, Ambev Entra no Universo dos NFTs para Fomentar o Funk, Livecoins, https://livecoins.com.br/ambev-entra-no-universo-dos-nfts-para-fomentar-o-funk/ [https:// perma.cc/6FZW-F5ZR].
[60]. Como o Blockchain Pode Impulsionar a Economia Circular no Brasil, Exame, https://exame.com/esg/como-o-blockchain-pode-impulsionar-a-economia-circular-no-brasil/ [https:// perma.cc/D55F-YGZH].
[62]. No Dia da Árvore, Empresas Brasileiras Usam Tecnologia Blockchain para Salvar o Planeta, Exame [hereinafter No Dia da Árvore], https://exame.com/future-of-money/no-dia-da-arvore-empresas-brasileiras-usam-tecnologia-blockchain-para-salvar-o-planeta/ [https://perma.cc/M45V-GLY9].
[64]. Id.; Toni Sciarretta, Empresa de TI Cede Árvore ‘Tokenizada’ para Funcionários, Valor (Sept. 20, 2022, 9:47 AM), https://valor.globo.com/empresas/criptomoedas/noticia/2022/09/20/empresa-de-ti-cede-arvore-tokenizada-para-funcionarios.ghtml [https://perma.cc/H6JA-HUJ5].
[66]. Créditos de Carbono: Como Funcionam os Créditos da Ambify, Ambify (Jan. 26, 2022), https://blog.ambify.com/creditos-de-carbono-como-funcionam-os-creditos-da-ambify [https:// perma.cc/3RZ6-ASNM].
[68]. No Dia da Árvore, supra note 62.
[72]. Prudente & Pomponet, supra note 32.
[73]. See, e.g., Câmara Aprova Projeto de Lei que Regulamenta Setor de Criptomoedas no Brasil, Exame (Nov. 29, 2022), https://exame.com/future-of-money/camara-dos-deputados-aprova-projeto-de-lei-que-regula-setor-de-criptomoedas [https://perma.cc/F6RZ-HF3E].
[74]. Decreto No. 10.550, de 24 de Novembro de 2020, Diário Oficial da União [D.O.U.], de 25.11.2020 (Braz.).
[76]. President Donald Trump eliminated the AI Bill of Rights on January 23, 2025, in an effort to remove would-be restrictions on the technology industry. Fact Sheet: President Donald J. Trump Takes Action to Enhance America’s AI Leadership, white house (Jan. 23, 2025), https://www.whitehouse.gov/fact-sheets/2025/01/fact-sheet-president-donald-j-trump-takes-action-to-enhance-americas-ai-leadership/ [https://perma.cc/XBU3-9EXX]. The AI Bill of Rights remains globally influential and therefore relevant for this Article’s discussion of ESG, DEI, and blockchain technology.
[77]. Blueprint for an AI Bill of Rights, White House, https://www.whitehouse.gov/ostp/ai-bill-of-rights/ [https://perma.cc/H7CL-NTF4].
[85]. Corporate Sustainability Reporting, Eur. Comm’n, https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en [https://perma.cc/S2PT-T9BQ].
[89]. Mercado Bitcoin, supra note 35; see Quem Somos, supra note 28.
[90]. About ReFi DAO, supra note 38; ReFi Spring, supra note 30.
[91]. H.E.R. DAO, supra note 31.
[92]. OKAN, supra note 3; Prudente & Pomponet, supra note 32.
[94]. De Oliveira, supra note 53.
[95]. Renner Utiliza Blockchain para Rastrear Nova Coleção de Jeans com Algodão Sustentável, supra note 55.
[96]. Sobre a Ambev, supra note 56; Bertolucci, supra note 58.
[97]. Como o Blockchain Pode Impulsionar a Economia Circular no Brasil, supra note 60; No Dia da Árvore, supra note 62.
[98]. No Dia da Árvore, supra note 62.
[99]. Créditos de Carbono: Como Funcionam os Créditos da Ambify, supra note 66; No Dia da Árvore, supra note 62.
[100]. No Dia da Árvore, supra note 62. See generally Paulo Barros, Conheça a História da Hashdex, Empresa que Criou o Primeiro ETF de Criptoativos da B3, InfoMoney (Oct. 16, 2021, 9:12 AM), https://www.infomoney.com.br/mercados/conheca-a-historia-da-hashdex-empresa-que-criou-o-primeiro-etf-de-criptoativos-da-b3/ [https://perma.cc/5BSP-J82N].