# SAP GreenToken for Sustainable Supply Chain Traceability

> SAP GreenToken is a cloud-based blockchain solution for raw material traceability through tokenization and mass balance accounting. The solution creates transparency in mixed material flows and automatically integrates sustainability data into ERP systems. The pilot project with DIC Corporation in the chemical industry for plastic waste recovery was announced in 2022 and uses private blockchain technology.

**Sector:** Secondary sector · **Industry:** Wood and paper industry · **Organisation:** SAP · **Maturity level:** Pilot

Canonical URL: https://www.sapientblock.com/en/use-cases/sap-nachhaltige-rohstoffe-massenbilanziell-sichern

## Documentation status

- **Project status:** Pilot
- **Evidence:** Evidence high
- **Editorial review:** Ufuk Avci, 15 April 2026

## Description

SAP GreenToken is a blockchain solution for mass balance traceability of sustainable raw materials. The mass balance principle allows sustainable and conventional raw materials to be transported and processed together — as long as the sustainable quantities are accounted for separately. GreenToken makes this accounting blockchain-secured and double-counting-proof through tokenisation of sustainability attributes.

Mass balance accounting is the core principle of the circular economy: instead of physical separation (expensive, often impossible), sustainability attributes are tokenised. When a manufacturer buys 10 tonnes of certified organic palm oil, they receive 10 GreenTokens; these tokens are passed on or redeemed when the palm oil is used in the product. The end product can be certified as "contains organic palm oil share" — without physical separation. SAP GreenToken is directly integrated with SAP S/4HANA systems: goods movements automatically trigger token transactions. This prevents double counting: a token can only be used once; the blockchain ensures this immutably. Pilot 2022: SAP and DIC (Dainippon Ink and Chemicals, Japan) tested GreenToken for plastic waste recovery in Southeast Asia — proof that recycled plastic material actually reaches the supply chain. Use cases: organic palm oil (RSPO certification), recycled plastic (post-consumer), organic rubber, sustainable forestry products (PEFC, FSC), certified cocoa and coffee supply chains.

## Benefits

- Integration with existing SAP systems enables seamless implementation without major system changes.
- Automated creation of sustainability declarations significantly reduces manual effort.
- Improved transparency in supply chains strengthens trust among stakeholders and investors.
- Efficient audits and compliance processes through automated documentation.
- Employees can shift from manual documentation to strategic sustainability planning.

## Challenges

- Companies need to standardise and digitalise their sustainability criteria, which may require organisational changes.
- The complexity of mass balance accounting requires clear rules and standards for successful implementation.
- Integration into existing ERP systems can present technical challenges.
- Employees need training for the new system and must adapt their working methods from manual to automated processes.

## Technology foundation

SAP GreenToken uses private blockchain technology for secure and traceable storage of sustainability data. This technology is particularly suitable as it gives companies full control over their data while enabling immutable documentation of material flows.

## Sources

- [SAP and DIC pilot GreenToken by SAP blockchain solution for plastic waste recovery](https://news.sap.com/sea/2022/07/sap-and-dic-pilot-greentoken-by-sap-blockchain-solution-for-plastic-waste-recovery/)
- [SAP GreenToken Product Page](https://www.sap.com/products/scm/green-token.html)
- [SAP GreenToken Features](https://www.sap.com/products/scm/green-token/features.html)