Blockchain-Enabled ESG for Secure and Transparent ‎Sustainability Accounting

  • Authors

    • Dr. Rajendra Vasantrao Patil Department of Computer Engineering, SSVPS Bapusaheb Shivajirao Deore College of Engineering, Dhule (MS), India
    • Dr. Pratibha Vivekanand Kashid Department of Information Technology, Sir Visvesvaraya Institute of Technology, Nashik (MS), India
    • Dr. Vishakha Abhay Gaidhani Department of Master of Business Administration, Sir Visvesvaraya Institute of Technology, Nashik (MS), India
    • Dr. Govind Mohanlal Poddar NES Gangamai College of Engineering, Nagaon, Dhule (MS)‎‏,‏‎ India
    • Manesh Prakashrao Patil Department of Computer Engineering, SSVPS Bapusaheb Shivajirao Deore College of Engineering, Dhule (MS), India
    • Ganesh Gulabrao Bhadane Dr. D. Y. Patil Institute of Technology, Pimpri, Pune (MS), India
    • Shravani R. Patil Department of Computer Engineering, SSVPS Bapusaheb Shivajirao Deore College of Engineering, Dhule (MS), India
    https://doi.org/10.14419/nab7g102

    Received date: August 15, 2025

    Accepted date: September 18, 2025

    Published date: October 8, 2025

  • Blockchain, ESG Reporting, Sustainability Accounting, Greenwashing, Smart Contracts, Disclosure, Digital Assurance, SDGs, Data Integrity, ‎Decentralized Systems

  • Abstract

    Environmental, Social, and Governance (ESG) reporting has developed as an essential structure for assessing corporate sustainability ‎performance and long-term value creation. However, conventional ESG declaration is undermined by data discrepancies, non-auditable ‎indicators, and susceptibility to greenwashing. This article explores the integration of blockchain technology into ESG data reporting ‎frameworks to develop an immutable, auditable, and reliable sustainability accounting system. Blockchain, with its characteristic aspects of ‎decentralized governance, immutable record keeping, and automated agreement mechanisms, offers a novel approach to existing shortcomings in ESG reporting. Through a structured review of recent literature, we inspect how blockchain can improve data trustworthiness, allow ‎real-time reporting, and smart contract-enabled compliance mechanisms. The research outlines novel practices, business applications, and ‎research gaps in ESG-blockchain integration. A five-layer framework is proposed to assess existing blockchain-based ESG models. The ‎framework incorporates parameters such as record traceability, independent verifiability, and compliance with applicable regulations. By ‎integrating insights from accounting, economics, and technological innovation, this article expands scholarly discussion on digital sustainable ‎governance. The findings are particularly important for regulatory authorities, sustainability practitioners, and technological innovators aiming to integrate ESG objectives with robust, auditable, and interoperable reporting infrastructures‎.

  • References

    1. R. Almadadha, “Blockchain Technology in Financial Accounting: Enhancing Transparency, Security, and ESG Reporting,” Block-chains, vol. 2, no. 3, pp. 312–333, Sep. 2024, https://doi.org/10.3390/blockchains2030015
    2. F. Zhu and D. Liu, “Impact of Blockchain Technology on the Quality of ESG Information Disclosure,” Procedia Comput. Sci., vol. 243, pp. 197–205, 2024, https://doi.org/10.1016/j.procs.2024.09.026.
    3. W. Wu et al., “Consortium blockchain-enabled smart ESG reporting platform with token-based incentives for corporate crowdsens-ing,” Comput. Ind. Eng., vol. 172, p. 108456, Oct. 2022, https://doi.org/10.1016/j.cie.2022.108456.
    4. T. Shukla, “LEVERAGING BLOCKCHAIN FOR ESG DISCLOSURE: ENHANCING TRANSPARENCY AND ACCOUNTABILITY IN SUSTAINABILITY REPORTING,” Int. J. Eng. Technol. Manag. Res., vol. 12, no. 3, Mar. 2025, https://doi.org/10.29121/ijetmr.v12.i3.2025.1546.
    5. M. Thanasi-Boçe and J. Hoxha, “Blockchain for Sustainable Development: A Systematic Review,” Sustainability, vol. 17, no. 11, p. 4848, May 2025, https://doi.org/10.3390/su17114848.
    6. M. Nofel, M. Marzouk, H. Elbardan, R. Saleh, and A. Mogahed, “Integrating Blockchain, IoT, and XBRL in Accounting Information Systems: A Systematic Literature Review,” J. Risk Financ. Manag., vol. 17, no. 8, p. 372, Aug. 2024, https://doi.org/10.3390/jrfm17080372.
    7. W. A. Kaal, “Decentralized Autonomous Organizations: Internal Governance and External Legal Design,” Ann. Corp. Gov., vol. 5, no. 4, pp. 237–307, 2021, https://doi.org/10.1561/109.00000028.
    8. S. Pizzi, A. Caputo, A. Venturelli, and F. Caputo, “Embedding and managing blockchain in sustainability reporting: a practical frame-work,” Sus-tain. Account. Manag. Policy J., vol. 13, no. 3, pp. 545–567, Mar. 2022, https://doi.org/10.1108/SAMPJ-07-2021-0288.
    9. X. Liu, H. Wu, W. Wu, Y. Fu, and G. Q. Huang, “Blockchain-Enabled ESG Reporting Framework for Sustainable Supply Chain,” in Sustainable Design and Manufacturing 2020, vol. 200, S. G. Scholz, R. J. Howlett, and R. Setchi, Eds., in Smart Innovation, Systems and Technologies, vol. 200. , Singapore: Springer Singapore, 2021, pp. 403–413. https://doi.org/10.1007/978-981-15-8131-1_36.
    10. Feng Tian, “An agri-food supply chain traceability system for China based on RFID & blockchain technology,” in 2016 13th Interna-tional Confer-ence on Service Systems and Service Management (ICSSSM), Kunming, China: IEEE, Jun. 2016, pp. 1–6. https://doi.org/10.1109/ICSSSM.2016.7538424.
    11. S. Saberi, M. Kouhizadeh, J. Sarkis, and L. Shen, “Blockchain technology and its relationships to sustainable supply chain manage-ment,” Int. J. Prod. Res., vol. 57, no. 7, pp. 2117–2135, Apr. 2019, https://doi.org/10.1080/00207543.2018.1533261.
    12. M. AlShamsi, M. Al-Emran, and K. Shaalan, “A Systematic Review on Blockchain Adoption,” Appl. Sci., vol. 12, no. 9, p. 4245, Apr. 2022, https://doi.org/10.3390/app12094245.
    13. R. Silkoset and A. Nygaard, “Leveraging Blockchain and Smart Contracts to Combat Greenwashing in Sustainable Development,” Sus-tain. Dev., vol. 33, no. 4, pp. 5874–5889, Aug. 2025, https://doi.org/10.1002/sd.3431.
    14. A. Rejeb, K. Rejeb, I. Zrelli, E. Süle, and M. Iranmanesh, “Blockchain technology in the renewable energy sector: A co-word analysis of academic discourse,” Heliyon, vol. 10, no. 8, p. e29600, Apr. 2024, https://doi.org/10.1016/j.heliyon.2024.e29600.
    15. D. Tapscott and A. Tapscott, Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, and the World. Penguin Publishing Group, 2016. [Online]. Available: https://books.google.co.in/books?id=NqBiCgAAQBAJ.
    16. A. Arshad, F. Shahzad, I. Ur Rehman, and B. S. Sergi, “A systematic literature review of blockchain technology and environmental sustainability: Status quo and future research,” Int. Rev. Econ. Finance, vol. 88, pp. 1602–1622, Nov. 2023, https://doi.org/10.1016/j.iref.2023.07.044.
    17. Y. Zhang, Z. Ma, and J. Meng, “Auditing in the blockchain: a literature review,” Front. Blockchain, vol. 8, p. 1549729, Apr. 2025, https://doi.org/10.3389/fbloc.2025.1549729.
    18. E. M. Alotaibi, A. Khallaf, A. A.-N. Abdallah, T. Zoubi, and A. Alnesafi, “Blockchain-Driven Carbon Accountability in Supply Chains,” Sustaina-bility, vol. 16, no. 24, p. 10872, Dec. 2024, https://doi.org/10.3390/su162410872.
    19. J. Sui, “The Impact of Blockchain Technology on Corporate ESG Performance: The Moderating Role of Digital Financial Innovation,” Acad. J. Manag. Soc. Sci., vol. 11, no. 1, pp. 247–259, Apr. 2025, https://doi.org/10.54097/r2k74s27.
    20. T. M. Fernandez-Carames and P. Fraga-Lamas, “A Review on the Use of Blockchain for the Internet of Things,” IEEE Access, vol. 6, pp. 32979–33001, 2018, https://doi.org/10.1109/ACCESS.2018.2842685.
    21. O. A. López et al., “Energy-Sustainable IoT Connectivity: Vision, Technological Enablers, Challenges, and Future Directions,” 2023, arXiv. https://doi.org/10.1109/OJCOMS.2023.3323832.
    22. M.-V. Vladucu, H. Wu, J. Medina, K. M. Salehin, Z. Dong, and R. Rojas-Cessa, “Blockchain on Sustainable Environmental Measures: A Review,” Blockchains, vol. 2, no. 3, pp. 334–365, Sep. 2024, https://doi.org/10.3390/blockchains2030016.
    23. S. Yadav, A. Samadhiya, A. Kumar, S. Luthra, and K. K. Pandey, “Environmental, Social, and Governance ( ESG ) Reporting and Missing (M) Scores in the Industry 5.0 Era: Broadening Firms’ and Investors’ Decisions to Achieve Sustainable Development Goals,” Sustain. Dev., vol. 33, no. 3, pp. 3455–3477, Jun. 2025, https://doi.org/10.1002/sd.3306.
    24. Ibrahim, Nurul Huda Razib, and Imran Hossain Rasel, “The role of data analytics in enhancing ESG transparency in the corporate sector of Bang-ladesh,” Glob. J. Eng. Technol. Adv., vol. 22, no. 1, pp. 081–093, Jan. 2025, https://doi.org/10.30574/gjeta.2025.22.1.0245.
    25. R. Kamath, “Food Traceability on Blockchain: Walmart’s Pork and Mango Pilots with IBM,” J. Br. Blockchain Assoc., vol. 1, no. 1, pp. 1–12, Jul. 2018, https://doi.org/10.31585/jbba-1-1-(10)2018.
    26. D. Dudek and E. Kulej-Dudek, “Modern technologies in ESG reporting - evidence from Polish enterprises,” Procedia Comput. Sci., vol. 246, pp. 5359–5367, 2024, https://doi.org/10.1016/j.procs.2024.09.659.
    27. I. Bashir, Mastering Blockchain, Second Edition. Packt Publication, 2018.
    28. H. R. Hasan, K. Salah, R. Jayaraman, and M. Omar, “Blockchain-Based Sustainability Index Score for Consumable Products,” IEEE Access, vol. 12, pp. 97851–97867, 2024, https://doi.org/10.1109/ACCESS.2024.3424269.
    29. R. Patil, S. K. Swarnkar, D. Y. Bhadane, G. M. Poddar, M. P. Patil, and R. C. Sonawane, “Exploring governance frameworks and deci-sion pro-cesses in ‎blockchain-based decentralized autonomous organizations,” Int. J. Basic Appl. Sci., vol. 14, no. 1, pp. 166–180, May 2025, https://doi.org/10.14419/h0y6dw98.
    30. R. V. Patil, I. S. Borse, M. P. Patil, A. H. Khadke, G. M. Poddar, and S. R. Patil, “Ensuring Trust in Blockchain Enabled Business Pro-cesses using Smart Contract Audits,” in 2025 International Conference on Inventive Computation Technologies (ICICT), Kirtipur, Ne-pal: IEEE, Apr. 2025, pp. 1248–1254. https://doi.org/10.1109/ICICT64420.2025.11004761.
    31. T. D. Monteiro, O. P. Sanchez, and G. H. S. M. D. Moraes, “Exploring off-chain voting and blockchain in decentralized autonomous organizations,” RAUSP Manag. J., vol. 59, no. 4, pp. 335–349, Nov. 2024, https://doi.org/10.1108/RAUSP-08-2023-0162.
    32. M. Thanasi Boçe and J. Hoxha, “Blockchain Technology as a Catalyst for Sustainable Development: Exploring Economic, Social, and Environmen-tal Synergies,” Acad. J. Interdiscip. Stud., vol. 13, no. 2, p. 151, Mar. 2024, https://doi.org/10.36941/ajis-2024-0041.
    33. R. V. Patil et al., “Decentralized Autonomous Organizations As Emerging Economic Entities in Accounting and Governance Frame-works,” Int. J. Account. Econ. Stud., vol. 12, no. 4, pp. 166–177, Aug. 2025, https://doi.org/10.14419/1sy2j677.
    34. T. Yu, “Blockchain Technology and the Improvement of ESG Information Transparency,” in Advances in Transdisciplinary Engineer-ing, S. Pat-naik, Ed., IOS Press, 2024. https://doi.org/10.3233/ATDE240431.
    35. M. Asif, C. Searcy, and P. Castka, “ESG and Industry 5.0: The role of technologies in enhancing ESG disclosure,” Technol. Forecast. Soc. Change, vol. 195, p. 122806, Oct. 2023, https://doi.org/10.1016/j.techfore.2023.122806.
    36. C. Bellavitis and P. P. Momtaz, “Voting governance and value creation in decentralized autonomous organizations (DAOs),” J. Bus. Ventur. In-sights, vol. 23, p. e00537, Jun. 2025, https://doi.org/10.1016/j.jbvi.2025.e00537.
    37. S. Khan, A. Ullah, Y. Liu, and M. Kashif, “Examining the blockchain and green innovation technologies on sustainability (ESG): the moderating role of global financial integration,” J. Sustain. Finance Invest., vol. 15, no. 1, pp. 145–181, Jan. 2025, https://doi.org/10.1080/20430795.2024.2441204.
    38. C. Mulligan, S. Morsfield, and E. Cheikosman, “Blockchain for sustainability: A systematic literature review for policy impact,” Tele-commun. Pol-icy, vol. 48, no. 2, p. 102676, Mar. 2024, https://doi.org/10.1016/j.telpol.2023.102676.
    39. “Blockchain Technology Market Size | Industry Report, 2030.” Accessed: Aug. 15, 2025. [Online]. Available: https://www.grandviewresearch.com/industry-analysis/blockchain-technology-market.
    40. Deloitte and PaperTale, “Adopting Blockchain-based E-Liability ESG reporting to comply with the upcoming CSRD regulation.,” Lon-don, UK: Deloitte. [Online]. Available: https://papertale.org/wp-content/uploads/2024/10/ESG-reporting-for-CSRD_Deloitte_PaperTale.pdf.
    41. W. Chen, W. Wu, Z. Ouyang, Y. Fu, M. Li, and G. Q. Huang, “Event-based data authenticity analytics for IoT and blockchain-enabled ESG dis-closure,” Comput. Ind. Eng., vol. 190, p. 109992, Apr. 2024, https://doi.org/10.1016/j.cie.2024.109992.
    42. K. Balaji and H. U. Rahman, “Blockchain-Enabled ESG Management: Enhancing Data Authenticity and Transparency,” in Green Hori-zons, S. Akhtar, M. Alam, N. U. H. Wani, and S. H. Jafar, Eds., Singapore: Springer Nature Singapore, 2025, pp. 105–126. https://doi.org/10.1007/978-981-96-6495-5_6.
    43. X. Liu et al., “Data-driven ESG assessment for blockchain services: A comparative study in textiles and apparel industry,” Resour. Conserv. Re-cycl., vol. 190, p. 106837, Mar. 2023, https://doi.org/10.1016/j.resconrec.2022.106837.
    44. F. Chien, K. Mehmood, Y. Wang, Y. Zhang, and P. Piccardi, “Smart ESG Framework for Corporate Responsibility Mechanism in De-centralized Finance,” Corp. Soc. Responsib. Environ. Manag., p. csr.70064, Jul. 2025, https://doi.org/10.1002/csr.70064.
    45. J. Byrd, K. Upadhyay, S. Poudel, H. Sharma, and Y. Gu, “A Blockchain and IoT-Enabled Framework for Ethical and Secure Coffee Supply Chains,” Future Internet, vol. 17, no. 8, p. 334, Jul. 2025, https://doi.org/10.3390/fi17080334.
    46. U. Thakker, R. Patel, S. Tanwar, N. Kumar, and H. Song, “Blockchain for Diamond Industry: Opportunities and Challenges,” IEEE Internet Things J., vol. 8, no. 11, pp. 8747–8773, Jun. 2021, https://doi.org/10.1109/JIOT.2020.3047550.
    47. O. O. Egunjobi, A. Gomes, C. N. Egwim, and H. Morais, “A systematic review of blockchain for energy applications,” E-Prime - Adv. Electr. Eng. Electron. Energy, vol. 9, p. 100751, Sep. 2024, https://doi.org/10.1016/j.prime.2024.100751.
    48. M. Eickhoff, A. Exner, and A. Busboom, “Energy Consumption Tokens for Blockchain-Based End-to-End Trading of Green Energy Certificates,” in 2023 IEEE PES GTD International Conference and Exposition (GTD), Istanbul, Turkiye: IEEE, May 2023, pp. 1–5. https://doi.org/10.1109/GTD49768.2023.00027.
    49. R. L. P. Urtecho, J. Rodríguez-Molina, M. Martínez-Núñez, and J. Garbajosa, “Enhancing Agriculture Through IoT and Blockchain: A VeChain-Enhanced Sustainable Development Approach for Small-Scale Agricultural Exploitations,” IEEE Access, vol. 12, pp. 179962–179980, 2024, https://doi.org/10.1109/ACCESS.2024.3506510.
    50. “Blockchain: The key to the traceability and trust in sustainable manufacturing.” Accessed: Aug. 15, 2025. [Online]. Available: https://www.circularise.com/blogs/blockchain-the-key-to-the-traceability-and-trust-in-sustainable-manufacturing.

  • Downloads

  • How to Cite

    Patil, D. R. V. ., Kashid, D. P. V. ., Gaidhani , D. V. A. ., Poddar , D. G. M. ., Patil , M. P. ., Bhadane, G. G. ., & Patil , S. R. . (2025). Blockchain-Enabled ESG for Secure and Transparent ‎Sustainability Accounting. International Journal of Accounting and Economics Studies, 12(6), 273-282. https://doi.org/10.14419/nab7g102