Introduction

This research examines blockchain technology’s potential to support sustainability objectives, focusing on its applications in energy systems, supply chains, and IoT-enabled solutions such as smart cities. The study utilises a systematic literature review (SLR) to analyse 10,188 papers, narrowing them to 1,403 relevant studies. Key objectives include exploring blockchain’s alignment with ESG goals and assessing its role in meeting regulatory standards. The findings reveal significant opportunities for blockchain in sustainability but also identify gaps in research and practical application.

The sustainability imperative

Blockchain technology is increasingly applied to address critical sustainability challenges. Solutions include carbon credit trading, energy efficiency in smart grids, and supply chain traceability. For example, blockchain-enabled platforms such as Positive Energy and Gainforest accelerate renewable energy investments and nature conservation efforts, respectively. Despite its promise, blockchain’s energy consumption remains a concern. Bitcoin alone consumes 86,580 GWh annually, highlighting the need for energy-efficient consensus mechanisms like Ethereum’s shift to Proof of Stake.

The research also critiques blockchain’s alignment with the UN Sustainable Development Goals (SDGs). While blockchain supports goals like clean energy (SDG 7) and climate action (SDG 13), the indicators used to measure these impacts are inconsistent. For instance, many projects claim alignment with SDGs for promotional purposes without substantiating their contributions. Policymakers are urged to establish rigorous frameworks to evaluate blockchain’s actual impact on SDGs.

Emerging ESG regulations, such as the EU’s Corporate Sustainability Reporting Directive (CSRD) and the ISSB standards, are driving corporate accountability. However, only eight studies in the review directly address blockchain’s integration with these frameworks. This disconnect highlights an opportunity for blockchain to strengthen compliance with evolving regulatory requirements.

Systematic literature review

The SLR applies the PRISMA framework to systematically evaluate blockchain’s role in sustainability. Out of 10,188 papers initially identified, 1,403 met the criteria for detailed analysis. Three primary themes emerged: supply chain management, energy systems, and IoT applications. For instance, blockchain is widely used in agricultural supply chains to improve traceability and reduce inefficiencies. Energy systems also leverage blockchain for peer-to-peer trading and grid optimisation, exemplified by frameworks like Zumo’s renewable energy solutions.

The geographic distribution of research shows that the EU leads with 468 studies, followed by China (280) and the US (145). The EU’s Horizon 2020 Programme has been instrumental in advancing blockchain’s role in energy and digital technologies, with Italy particularly active in food supply chain innovations.

Despite this progress, gaps in the literature are evident. Only 27 studies focus on blockchain protocols, and few address energy consumption comprehensively. Additionally, 44 papers examine peer-to-peer energy trading, but many replicate concepts without advancing practical implementation. The research community is encouraged to prioritise collaboration and innovation to maximise blockchain’s sustainability impact.

Results and conclusions

Blockchain demonstrates clear utility in sustainability through its applications in energy efficiency, supply chain traceability, and IoT integration. For example, decentralised platforms like AgriLedger enable food traceability, while blockchain-based data supply chains support transparent carbon reporting. However, challenges persist in aligning blockchain solutions with ESG regulations and measuring their environmental impact effectively.

Recommendations from the study include standardising methodologies to quantify blockchain’s carbon footprint and integrating blockchain within broader industry-specific sustainability frameworks. Policymakers are advised to adopt a systems-based approach, assessing blockchain as part of a larger infrastructure rather than as a standalone solution. Collaboration across research disciplines and international boundaries is critical to fully realise blockchain’s potential in achieving net-zero and ESG objectives.