Blockchain-Enabled Digital Supply Chain Regulation: Mitigating Greenwashing to Advance Sustainable Development

Hua Pan, Pengcheng Wang, Shutong Zhang · Sustainability · 2025

Environmental information fraud, such as greenwashing, severely impedes the achievement of global Sustainable Development Goals (SDGs). Blockchain technology, as an innovation tool with a sustainability orientation, offers new possibilities for improving the reliability of supply chain information oversight. However, its practical application mechanisms and policy value in green supply chain governance remain unclear. This study focuses on the greenwashing behavior of core enterprises and constructs an incomplete information game model to compare and analyze the inherent mechanisms of traditional regulation (TR) and blockchain-based digital supply chain regulation (DSCR). By simulating the strategic choices of enterprises between “genuine production” and “greenwashing” within a supply chain network, this research finds that when the quality of on-chain information reaches a certain threshold, the blockchain consensus mechanism can more accurately reveal corporate moral hazards, such as information manipulation, significantly reducing the incidence of greenwashing. As the number of enterprises participating in the blockchain network increases, the reliance on high-quality information in the DSCR model decreases, and regulatory efficiency is further enhanced through network effects. The findings provide theoretical support for designing regulatory strategies against greenwashing: Blockchain technology can build a trustworthy supply chain ecosystem through cross-enterprise data verification, directly supporting the SDG 12 goal of “Responsible Production.” Its decentralized nature helps optimize industrial infrastructure (SDG 9) and indirectly promotes climate action (SDG 13). This study suggests that regulatory agencies use policy tools such as “establishing on-chain information quality standards” and “incentivizing enterprises to join the blockchain network” to strengthen the practical application of the model, while also addressing implementation challenges such as data authenticity and digital infrastructure compatibility.

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