EUDR Compliance & Supply Chain

AI-Enhanced Environmental Due Diligence

Satellite-powered deforestation risk assessment and supply chain traceability for EU Deforestation Regulation compliance across a cocoa importer's supply network.

47
Supplier Farms
12,340
Hectares Analyzed
100%
GPS Traceability
Client Overview

Anonymous European Cocoa Importer (Hamburg-based, 2024 engagement)

A major European cocoa importer with supply chain operations spanning multiple continents, requiring compliance with the EU Deforestation Regulation (EUDR) for cocoa sourcing.

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Supply Chain Scale

47 direct supplier farms across 3 continents, sourcing cocoa beans and cocoa derivatives with complex traceability requirements.

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Regulatory Mandate

Full compliance with EU Regulation 2023/1115 (EUDR) requiring deforestation-free due diligence for all supply chain actors.

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Data Integration

Hansen Global Forest Watch, Copernicus Sentinel-2, and ESA WorldCover integrated for multi-source deforestation monitoring.

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AI Risk Scoring

Machine learning models trained on multi-spectral satellite imagery to detect and classify deforestation risk at farm-level resolution.

The Challenge

Compliance in a Complex Supply Chain

The EU Deforestation Regulation (EUDR), entered into force on 9 June 2023, requires operators and traders to exercise due diligence to ensure that products placed on or exported from the EU market have not been produced on deforested land after 31 December 2020. Regulation (EU) 2023/1115

The challenge is compounded by the need for high-resolution forest cover data. Bourgoin et al. (2024), in the EU JRC's global forest cover mapping for 2020, demonstrated that deforestation detection at sub-hectare resolution requires integration of multiple satellite sources and careful calibration against ground reference data. Bourgoin et al. (2024) โ€” EU JRC

The foundational work of Hansen et al. (2013) established the first high-resolution global maps of 21st-century forest cover change, providing the baseline data infrastructure that underpins modern EUDR compliance efforts. Their annual forest loss dataset at 30m resolution remains the primary reference for temporal deforestation analysis. Hansen et al. (2013) โ€” Science

Our client faced a critical gap: while EUDR mandates deforestation-free supply chains, existing tools provided only regional-level risk indicators. They needed farm-level traceability, integrating satellite imagery with GPS boundary data, supplier questionnaires, and field verification audits.

EUDR Key Requirement: "Operators shall collect and keep information, including geolocation coordinates, demonstrating that the relevant commodities and products have been produced on land that has not been subject to deforestation after 31 December 2020." โ€” Regulation (EU) 2023/1115, Article 9.
Methodology

Our Approach

Step 1: Satellite Analysis

  • Acquired Sentinel-2 Level-2A imagery for all 47 supplier farm polygons (2019โ€“2024)
  • Downloaded Hansen Global Forest Watch 30m tree cover and annual loss data (2000โ€“2023)
  • Integrated ESA WorldCover 10m land cover classification for 2020 and 2021
  • Built cloud-free Sentinel-2 composites using Google Earth Engine (10% cloud threshold)

Step 2: AI Risk Scoring

  • Trained Random Forest classifier on 2,400 labeled pixels (forest vs. non-forest vs. degraded)
  • Computed Normalized Difference Vegetation Index (NDVI) and Enhanced Vegetation Index (EVI) time series
  • Applied change detection using BFAST algorithm for break detection in vegetation trends
  • Generated per-farm risk scores (0โ€“100) with confidence intervals

Step 3: Field Verification

  • Deployed 3 field verification teams to 12 high-priority supplier locations
  • Conducted GPS boundary validation using sub-meter accuracy GNSS receivers
  • Ground-truthed satellite classification with 450 reference plots (20m ร— 20m)
  • Interviewed farm managers and reviewed land-use documentation for deforestation-free claims

Step 4: Compliance Documentation

  • Compiled geolocation evidence (GPS polygons, satellite imagery) for each farm
  • Generated due diligence statements aligned with EUDR Article 4 requirements
  • Created risk assessment reports with evidence of deforestation-free status
  • Established continuous monitoring system for annual re-assessment
Timeline

Project Phases

Phase 1: Data Acquisition (Weeks 1-3)

Downloaded Sentinel-2 composites for 47 farm polygons. Integrated Hansen GFW, ESA WorldCover, and historical MODIS vegetation indices. Established cloud-based data pipeline.

Phase 2: Model Training & Risk Scoring (Weeks 4-8)

Trained Random Forest classifier on labeled reference data. Applied BFAST change detection. Generated preliminary risk scores and identified 8 farms requiring field verification.

Phase 3: Field Verification (Weeks 9-12)

Deployed field teams to 12 locations across 3 countries. Ground-truthed 450 reference plots. Validated GPS boundaries and documentation. Reclassified 3 farms as high-risk.

Phase 4: Compliance Reporting (Weeks 13-16)

Compiled due diligence statements for all 47 farms. Delivered GIS dashboard with risk monitoring. Trained client team on continuous monitoring protocols.

Data & Analysis

Deforestation Risk Trajectory

Time-series analysis of forest cover change across supply chain regions using Hansen Global Forest Watch data (2000โ€“2023).

Deforestation Risk Scores by Supply Chain Region (2000โ€“2023)

Risk scores derived from Hansen GFW annual forest loss data, normalized per supplier region. Lower scores indicate reduced forest cover integrity.

Supply Chain Hotspots with Risk Heatmap

Three.js globe showing supplier farm locations with color-coded risk levels. Green = low risk, Yellow = medium risk, Red = high risk.

Results

Measurable Impact

0
Supplier Farms Assessed
0
Hectares Analyzed
0
High-Risk Farms Flagged
0
GPS Traceability %
Academic Foundation

Grounded in Peer-Reviewed Science

Regulation (EU) 2023/1115
"Regulation on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation." โ€” Official Journal of the European Union, 9 June 2023.
https://eur-lex.europa.eu/eli/reg/2023/1115/oj
Bourgoin et al. (2024)
"Mapping global forest cover of the year 2020." โ€” European Commission, Joint Research Centre (JRC).
DOI: 10.2760/262532
High-resolution global forest cover mapping using multi-source satellite data, providing the baseline reference for EUDR compliance assessments.
Hansen et al. (2013)
"High-Resolution Global Maps of 21st-Century Forest Cover Change." โ€” Science 342(6160): 850-853.
DOI: 10.1126/science.1244693
The foundational global forest monitoring dataset at 30m resolution, with annual forest loss data from 2000โ€“2023, underpinning modern deforestation analysis.