Utilizing blockchain-based traceability to mitigate greenwashing

Purpose Consumers are becoming more environmentally conscious, striving to engage in sustainable behaviors and transactions. As a result, businesses strive to follow this trend by providing sustainable and environmentally friendly products and services; nevertheless, this has increased the prevalence of greenwashing practices. Blockchain-based traceability (BBT) technology, a system that may give transparent, traceable and trustworthy information, shows potential to help address this issue. Accordingly, the goal of this study is to explore the role of BBT in mitigating greenwashing perceptions. Design/methodology/approach In order to test the hypothesis, an empirical analysis was conducted on a sample of 440 customers. Data were analyzed by using the structural equation modeling approach. Findings Empirical results reveal that transparency and data security enable customers to trust in BBT technology, which helps to foster consumer trust in the retailer which in turn decreases greenwashing perceptions. Research limitations/implications This study adds to the expanding body of research on greenwashing by demonstrating how BBT technology can be used to reduce the issue. Practical implications This study offers insights to managers, showing that BBT technology may address greenwashing. Originality/value Existing studies on greenwashing concentrate on customers or public decision-making and on the detrimental effects of these practices, which mostly affect consumers. To the best of the authors’ knowledge, this paper is one of the few that examines how to mitigate perceived greenwashing and develop sustainability.