SMX (Security Matters) PLC announced their new solution to deliver a centralized blockchain reporting system for supply chain data, focusing on ethical sourcing, origination, and brand authentication in the Natural Rubber industry. SMX technology addresses the challenges faced by multinational organizations in meeting compliance and reporting standards related to: Ethical sourcing of materials, Child labour, Use of conflict minerals, Use of chemicals & pesticides, Location and identification of farms and farmers and EU Deforestation Regulation (EUDR) reporting. The key benefits include the ability to move marked commodities downstream in a traceable, transparent, and compliant manner, linked to an irrefutable digital blockchain record.

This transition from paper-based and manual auditing to real-time digital reporting helps reduce compliance and audit costs, lower reputational risks, and enhance productivity across supply chain operations. The Company developed a comprehensive platform for natural rubber producers and suppliers to monitor their supply chains in real-time. This digital platform is designed to integrate data from various sources, including polygon information, satellite imagery, on-ground sensors, risk assessment document management and blockchain records, to provide a holistic view of supply chain activities from tree to finished product in one centralised platform (tree, producer, compounder, manufacturer, brand and recycler).

The dashboard is designed to provide real-time updates, alerts, and comprehensive reports for internal and external stakeholders to support the EUDR due diligence statements and reporting requirements at the shipment level. The dashboard will project information from the SMX blockchain and all validated 3rd party data to ensure the highest levels of data integrity. Furthermore the platform would capture the latest deforestation and forest degradation reporting and ties it to the physical movement of natural rubber from tree to finished product.

All connections to 3rd party systems are linked via SMX API integration, aiding secure and low cost information sharing. The UN Food and Agriculture Organization (FAO) estimates that 420 million hectares of forest were lost to deforestation between 1990 and 2020, with EU consumption representing around 10% of global deforestation. In December 2022, the European Parliament and the Council agreed on an EU regulation to ensure that key goods placed on the EU market will no longer contribute to deforestation and forest degradation.

Once the new rules are enforced, all relevant companies must conduct strict due diligence if they place on the EU market, or export from it, commodities like palm oil, cattle, soy, coffee, cocoa, timber, and rubber. These commodities are major drivers of deforestation due to agricultural expansion. SMX?s tech solution is designed to empower organizations to deliver transparent, auditable, and compliant solutions to meet these EU regulations.

SMX technology provides a comprehensive solution that ensures: Traceability spanning the entire ecosystem of the marked material from origin to final product ? without altering the commodities? original characteristics.

Location-based reporting on material and quality. Adherence to industry best practices. Transparent reporting throughout the supply chain.

Regulatory & compliance reporting on supply chains and products from origin to final product sale through a secure digital platform. Enabling near real-time EUDR reporting with information held on the blockchain, satisfying the minimum five-year document storage required by EUDR regulations. It has been reported that the natural rubber consumed in the EU is mostly imported with a significant amount produced by small holders.

SMX believes that this makes ensuring transparency and traceability extremely challenging. Unsustainable rubber production can lead to deforestation, biodiversity loss, and adverse impacts on smallholders? living conditions, local communities, and workers?

rights. SMX believes that the inclusion of natural rubber in the EU Deforestation Regulation will benefit companies with transparent supply chains, such as those that use SMX?s solutions. The new regulation sets strong mandatory due diligence rules for companies that place relevant products on the EU market or export them, ensuring deforestation-free and legal production.

The integration of SMX technology in the natural rubber supply chain is expected to enable end-to-end traceability and transparent output in terms of Chain of Custody from downstream sources to finished goods sales. Brands will be able to tangibly authenticate and provide irrefutable proof of quality, quantity, and origin, including ethical sourcing and sustainable farming practices, for credible ESG reporting to stakeholders, customers, auditors, and regulators. SMX technology can address the challenge of ESG criteria, ethical sourcing, and EU deforestation compliance, allowing for digitizing the supply chain in the ?first mile?

and enabling the movement of natural rubber downstream along with a digital record. The SMX marker can scan and report on the origin location where it was added and first scanned, allowing companies to report in near real-time on all aspects of natural rubber products at any stage of the supply chain.