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Sustainable supply chains
How to track down deforestation supply chains? Gaialab supports companies in the compliance with the EUDR Regulation on tracing deforestation linked to agricultural products
Trade in forest risk commodities often has an impact far from consumption countries and its traceability is complex.

Gaialab supports companies in assessing the impact of forest risk commodities on land use and land use change. Thanks to traceability platforms and GIS based softwares, we help companies to report efforts to reduce deforestation in supply chains and raise climate ambition.

Agricultural commodities are globally responsible for 80% of deforestation and forest degradation. Every year 10’s of millions of forests are lost, while according to FAO between 1990 and 2020, 420 million forests have been cleared.
Deforestation and forest degradation are important drivers of climate change and biodiversity loss. The worsening state of global forests is reaching a dangerous tipping point with devastating effects on health, lives, and livelihoods for millions of people around the world.

“Visibility of corporate performance towards eradicating deforestation is getting ever clearer, with a record number of companies now disclosing their progress. In 2022, 1043 companies have reported their efforts according to Carbon Disclosure Project Forests”
The new EU Regulation on deforestation
The pioneering EU 2023/1115 Regulation represents a game changer.

Under the Regulation, companies placing products in the EU market will have to conduct strict due diligence reports on palm oil, cattle, soy, coffee, cocoa, timber and rubber as well as derived products such as beef, furniture, or chocolate. Companies have to carry out due diligence to evaluate risks in supply chains, collecting relevant information, including geospatial data, on these commodities to ensure they have not been produced on land deforested or degraded after 21 December 2020.

The Regulation introduces key principles to safeguard indigenous people who live in forests, often impacted by land exploitation.

Challenges for companies
Sourcing

Sourcing raw materials is challenging as it is linked to the suppliers ability to track products back to the producing country and land parcels.

Costs

Understanding cost breakdown and final product margin could become a challenge due to traceability costs.

Suppliers

Screening the supplier base and developing a Supplier Code of Conduct will be required, not only on the basis of environmental impact but also respect of indigenous people.

Traceability

Using satellite images and traceability platforms is a complex exercise that require models and ground truth data

Aiutiamo l’azienda nella tracciabilità del prodotto

Supporting companies in product traceability

Traceability is the first step in reducing the risk to supply products at risk of deforestation. We use advanced and multiple platforms to track products back to their origin.

Valutazione del rischio

Assessing risks

We assess supplier country risks, using benchmarking systems and provide advice on partnerships with reliable operators.

Mitigazione e due diligence

Mitigation and due diligence

We support companies in preparing due diligence reports, to comply with verification schemes and with negligible risk criteria.

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