Project

A. General Information

1. Title

UNECE Blockchain Pilot for Traceability and Transparency in Textile and Cotton Supply Chains

2. Status of the project
Operating
3. Implementation period of the project/service:
From
Jul-2019
To
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4. Website
https://unece.org/trade/traceability-sustainable-garment-and-footwear http://th…
5. Geographical coverage
Global: Europe, Asia and the Pacific, North America, Latin America, Africa, Western Asia
Participating countries: France, Germany, Greece, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Türkiye, United Kingdom of Great Britain and Northern Ireland, Uzbekistan, Denmark, Australia, India, Mongolia, Pakistan, Viet Nam, United States of America, Argentina, Chile, Paraguay, Peru, Egypt, South Africa, Lebanon
Hub Point: Switzerland
6. Participating agencies/entities of the project/service:
a. Development stage
Lead agencies/entities
UNECE, UN/CEFACT
Other participating agencies/entities
European Commission (funding), International Trade Centre (ITC), ILO, UNDP, FAO, World Bank Group - IFC
b. Operational stage
Lead agencies/entities (op)
UNECE, UN/CEFACT
Other participating agencies/entities (op)
In Uzbekistan: Indorama Agro, Indorama Kokand Textile, Nil Granit, IFC Tashkent, World Bank Group, CEU, Uztextileprom Association, GIZ. Technology partners: Haelixa (DNA markers). Global partners: Hugo Boss, Vivienne Westwood, Stella McCartney, Weba, Soktas, EURATEX, COTANCE, H&M, Kering, and over 250 experts.
7. Main stakeholders/beneficiaries of the project
Traders (big enterprises)
Traders (SMEs)
Transport
Cotton farmers and cooperatives, textile manufacturers, brands and retailers, certification bodies, consumers, governments, auditing bodies
8. Business process category of the project
Commercial Transactions
Regulatory/official control
Supply chain traceability and transparency, sustainability certification verification, due diligence compliance, ESG standards verification

B. Lessons Learned

9. Summary description of the project/service
Brief Summary

A global UN initiative using blockchain technology and DNA markers to enable end-to-end traceability of textile products from cotton field to retail shelf, verifying sustainability claims across value chains.

a. Objective(s)

To enhance traceability and transparency in garment and footwear value chains by providing governments and companies with tools to verify sustainability claims, ensure compliance with ESG standards, support due diligence requirements, and enable consumers to make informed choices about ethical and sustainable products.

b. Business need for the project (background)

Only 34% of garment companies tracked their value chains, with most having visibility only to immediate suppliers. The industry faces environmental challenges (1.2 billion tonnes CO2 emissions annually) and social risks including labor violations. Rising consumer demand for ethical products and regulatory requirements like EU due diligence directives created urgent need for verifiable traceability systems.

c. Business process covered*

Full spectrum of cotton and textile value chain: farming and harvesting, ginning, spinning, weaving, dyeing, finishing, manufacturing, branding, and retail. Key business transactions include sustainability certification, auditing, origin verification, chemical use documentation, labor standards compliance, and consumer disclosure.

d. Overall architecture and functionalities*

Open-source Ethereum blockchain system enabling immutable data storage with distributed access for all value chain actors. DNA markers (Haelixa) physically tag raw materials for forensic verification. The system uses EPCIS-based data model following the 5Ws traceability framework (who, what, where, when, why/how). Mobile and web applications enable data entry even by farmers with smartphones. Smart contracts automate B2B information exchange and verification.

e. Relevant document/figure
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10. Documents and data exchanged via the project

Certificate of origin, certificate of organic cotton, zero discharge and hazardous chemicals substances self-assessment tool, sustainability claims (origin, fiber content, chemicals use, product quality, social and environmental aspects), OECD due diligence documentation, PCR-based DNA verification test results, transaction data following EPCIS model.

11. Data models/databases, proprietary solutions, hybrid approaches

UN/CEFACT Business Requirements Specification aligned with ISO 19987 EPCIS standard. Uses GS1 EPCIS event model with RESTful APIs. Hybrid approach combining open-source blockchain (Ethereum) with physical DNA markers. Hosted on Google Cloud with OAuth JWT authentication.

12. Main challenges faced during the project

Fragmented value chains with at least 15 nodes between raw material and end product. Data security and privacy concerns regarding commercially sensitive supplier information. Digital divide affecting small-scale actors in developing economies. Trust building among partners to share supply chain data. Legal barriers and knowledge gaps impeding blockchain adoption in developing countries.

13. Lessons learned from the project

Neutral collaborative platform leadership by UNECE was critical for multi-stakeholder trust. Standardized approach building on UN/CEFACT standards enabled interoperability with existing systems. Physical DNA markers bridge the gap between digital data and physical products, preventing false claims. Mobile accessibility ensures inclusion of smallholders with only smartphones.

14. Main benefit(s) of the project
Enhanced regulatory compliance*
Simplified process
Increased trade flow
14A. Elaborations/detailed description on benefits gained
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15. Technical/financial/capacity building/other assistance

Financial: European Union funding (2019-2022). Technical assistance: UNECE provides blockchain system, UN/CEFACT standards and guidelines. Capacity building: Training sessions, workshops in multiple countries, coaching for value chain actors. In Uzbekistan: UNDP 'Aid for Trade in Central Asia' project (funded by Finland) provides additional support.

16. Future plan for expansion of the project

Scaling up to other textile fibers and materials (synthetic, wool, cashmere, leather). New three-year project launched for five developing countries (Lebanon, Kenya, Mexico, Mongolia, Uzbekistan). Development of Digital Product Passport alignment for EU regulations. Community of Practice established. Additional pilots with brands like Stella McCartney exploring satellite imagery and carbon capture measurement.

17. Other information or relevant references on the project

The Uzbekistan cotton pilot specifically traced T-shirts from cotton field to shelf with Indorama Agro, Indorama Kokand Textile, and Nil Granit, using Haelixa DNA markers. The pilot launched in July 2021 with IFC Tashkent support. Uzbekistan's cotton sector accounts for 30% of exports and the country is the world's sixth largest cotton producer. As of 2022, the global initiative included 68 pledges from 59 actors representing 253 partners worldwide.

- Updated Report on the Blockchain Pilots Project: Proof of Concept Report (2023) ECE/TRADE/C/CEFACT/2023/19
- UNECE Recommendation No. 46: Enhancing traceability and transparency of sustainable value chains (ECE/TRADE/463)
- Business Requirements Specification for Traceability and Transparency in the Textile and Leather Sector, Part 1 and Part 2 (2021)
- Harnessing the potential of blockchain technology for due diligence and sustainability in cotton value chains, Policy brief (April 2021)

18. Relevant document regarding the project
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C. Relevant Standards

19. Name(s) of any international, national legal instrument underpinning the project
OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector;
EU Directive on Corporate Sustainability Due Diligence;
ILO Conventions (labor standards);
UN SDGs (SDG 8: Decent Work, SDG 12: Responsible Consumption and Production);
EU GSP+ arrangement; UNECE Recommendation No. 46
20. Electronic message standard
20A. Electronic message standard supporting the project
XML:
- Other XML format: UN/CEFACT CCBDA data structures, aligned with ISO 19987 EPCIS standard, JSON-LD vocabulary
20B. Type of standard for electronic message applied for the project
International standard
21. Technical communication standard
21A. Technical communication standard supporting the project
HTTP, RESTful APIs, OAuth implicit flow with JWT authentication, Google Cloud Platform hosting
21B. Type of technical communication standard applied for the project
International standard
22. Security-related standards*
22A. Security-related standard supporting the project
TLS (Transport Layer Security) / SSL (Secure Socket Layer)
Digital signatures
Ethereum blockchain with smart contracts for immutable data storage, OAuth JWT token-based access control, permissioned blockchain architecture
22B. Type of security-related standard applied for the project
International standard
23. Other Technical Information
23A. Interface developed for data exchange with an internal system
RESTful APIs aligned with ISO EPCIS event model and UN/CEFACT supply chain semantics. Mobile applications for Android and iOS enable data entry by farmers and producers. Web interface for brands and retailers. APIs designed for interoperability with existing supply chain management systems.
23B. Other technical implementation information
The system combines digital blockchain traceability with physical DNA markers (Haelixa technology). DNA markers are applied as fine spray to raw materials (cotton lint) and verified through PCR testing at each supply chain stage. Markers are GMO-free, Oeko-Tex Standard 100 compliant, and GOTS-approved for organic textiles.

Last Update: 2 December 2025