#78 - The United Nations Transparency Protocol (UNTP) (with Steve Capell)
Dec 6, 2024
auto_awesome
In this engaging discussion, Steve Capell, Vice Chair of UN/CEFACT and Project Lead of the UN Transparency Protocol, dives into the pressing need for transparency in global value chains. He highlights the alarming prevalence of greenwashing, where over 50% of product claims are misleading. The conversation explores the transformative power of the UNTP, regulations like carbon border adjustments, and digital product passports. Capell also emphasizes the role of decentralized identifiers and verifiable credentials in fostering trust and ensuring integrity in sustainability claims.
The widespread issue of greenwashing reveals that over 50% of product claims are misleading, necessitating greater transparency and accountability.
The UN Transparency Protocol (UNTP) aims to create interoperability across diverse tracing systems, promoting a standardized approach to traceability in sustainability.
Verifiable credentials play a crucial role in enhancing trust and integrity in sustainability data, enabling stakeholders to make informed, responsible decisions.
Deep dives
The Shift Towards Transparency and Accountability
The current trends in corporate behavior highlight a significant transition from superficial marketing claims to genuine accountability regarding environmental and social practices. Increasing regulatory scrutiny has revealed that a substantial percentage of product claims are either misleading or outright false, leading to a phenomenon known as greenwashing. Governments are now mandating corporations to provide proper disclosures regarding their sustainability practices, creating a legal obligation to ensure that claims made about products' environmental impacts can be substantiated. This shift is pushing organizations to invest in transparency initiatives to avoid severe penalties and enhance their reputational integrity.
The Need for Interoperable Standards
A core issue in the quest for traceability in supply chains is the lack of interoperability between different tracing systems across various industries. Unlike financial transactions, where a universally acceptable system like SWIFT exists, no such standardized approach currently governs sustainability and traceability. The introduction of the UN Transparency Protocol (UNTP) seeks to address these challenges by providing a framework that allows diverse systems to communicate and share data without requiring all parties to adopt a single platform. This interoperability is crucial for creating a comprehensive understanding of product origins and the environmental claims associated with them.
Building a Common Core for Diverse Industries
The design of the UNTP revolves around creating a common core that can be flexibly extended to meet the specific needs of various industry sectors while maintaining consistency in sustainability metrics. The goal is to develop a toolkit that provides baseline standards applicable across multiple sectors, enabling different industries to adapt and expand upon them as necessary. For instance, the Australian Agriculture Traceability Protocol builds upon UNTP to include specific attributes relevant to livestock, illustrating how foundational standards can accommodate nuanced requirements. This approach not only fosters collaboration but also empowers industries to take ownership of their sustainability practices.
The Role of Verifiable Credentials in Data Trustworthiness
In the context of the UNTP, verifiable credentials serve as a mechanism to enhance the integrity and reliability of sustainability data shared across value chains. These credentials provide a secure way to validate claims made in a digital product passport, ensuring that the information is accurate and comes from a credible source. By employing a decentralized trust architecture, the UNTP mitigates the risks associated with data tampering and enhances user confidence in the information presented. As a result, stakeholders can make informed decisions based on trustworthy data, paving the way for more responsible consumption and production practices.
Decentralized Identity and Regulatory Compliance
The interplay between decentralized identity solutions and regulatory frameworks highlights a crucial element for enhancing transparency in supply chains. Entities that manage identifiers, such as government registrars, hold the potential to provide verification frameworks that support businesses in demonstrating compliance with sustainability standards. By leveraging their existing infrastructure and adding the capability of issuing digital credentials, these entities can enhance trust and streamline verification processes. This approach not only facilitates compliance with regulations but also empowers businesses to showcase their sustainable practices effectively.
Are you confident in the environmental and social claims about your products?
In this episode of The SSI Orbit Podcast, host Mathieu Glaude sits down with Steve Capell, Vice Chair of UN/CEFACT and Project Lead of the United Nations Transparency Protocol (UNTP), to explore how transparency and traceability are being revolutionized in global value chains. Together, they unpack the challenges of greenwashing, the urgency of compliance with new regulations, and the transformative potential of a global transparency protocol.
Steve shares real-world examples, such as the impact of carbon border adjustments and digital product passports, highlighting how regulatory frameworks and technological innovation intersect. The conversation also addresses the role of decentralized identifiers and verifiable credentials in ensuring the integrity of sustainability claims.
Key Insights:
Greenwashing is widespread, with over 50% of product claims being misleading or false.
The UNTP offers a standards-based approach to ensure transparency and interoperability in value chains.
Verifiable credentials are essential for decentralized trust, linking data to trusted sources while ensuring integrity.
Regulations like carbon border adjustments and product passports are reshaping trade by enforcing sustainability disclosures.
The UN's role as a neutral body provides a trusted space for creating global standards and recommendations.
Tune in to this episode to learn how the UNTP is driving a shift from marketing-led sustainability claims to evidence-backed transparency and why this transformation is critical for regulatory compliance and strategic business differentiation. Don't miss this deep dive into the future of transparent global trade!
Chapters:
00:00 - Why is the UN pursuing the development of a new protocol to help solve transparency in sustainability disclosures?
09:17 - How to ensure the integrity of claims being made is the d efacto standard?
16:32 - How did the UNTP think through the proper technical and governance architecture to support all transparency use cases?
32:36 - What will become the catalyst for the mass uptake of the UNTP?
40:32 - What makes the UN a good home for the definition of a transparency protocol?
51:03 - Does all data that interacts with the UNTP need to be public?
58:40 - Is there an opportunity for registrars to create value using the UNTP?