Commodity supply chains are a critical factor in the global battle against deforestation and land conversion – one of the greatest frontiers in addressing the global climate and nature crises. As the demand for products such as palm oil, soy, beef and timber continues to surge, the pressure on forests intensifies. Amid this challenge lies an opportunity for change that is driven both by legislation and consumer demand. Smart businesses recognise that sustainable sourcing will make their business more resilient and secure it for the long term. The challenge is whether they understand enough about their supply chains to take effective action: that is where we come in.
The first few months of the year is always a busy time for us. A key pillar of our work is annual data collection from thousands of supply chain actors, to help our clients understand what is really happening in key forest risk supply chains. We cover soy, oil palm, cocoa, coffee, paper and timber. Each is used in a huge range of products and by a diverse range of businesses. This process is now in full swing and it will be summer before we can publish our annual overview of the key findings and trends.
Why does data matter?
Our clients rely on us to manage data collection from their supply chains. While data alone cannot drive progress, high quality data does inform action and allow the tracking of progress on sustainability commitments. It’s a huge team effort, and the impact it can drive and the insights it generates make it a key part of the work we do.
The companies we work with are ambitious about improving the sustainability of their supply chains and breaking the link with deforestation and ecosystem conversion. They are clear on the need to engage with the thousands of actors involved in their supply chains to make this transition happen. Our 3Keel team reaches back down the supply chain to collect data on where the commodities were originally produced, the production methods and standards used to ensure they meet sustainability criteria, and the evidence to back up any claims.
Analysing that data and turning it into reports that can be easily understood – and can inform effective action – is a core part of what we do. It’s a challenge that is constantly evolving, as supply chains shift and mature, and technology continues to develop. We need to ensure consistency across our approaches to enable our clients to compare data from year to year, and be confident in whether they are seeing genuine progress. But every year, we refine and improve our processes so that we can ensure a robust data collection process in the most efficient and simple way possible – making use of new technology or data sources. This means that supply chain actors can focus on driving progress rather than completing reports.
The annual cycle of data gathering gives a good vantage point to reflect on progress being achieved and where much more remains to be done.
A critical year for action on forest risk commodities
Recent reports have highlighted the importance of the next two years to tackle deforestation at a global level, if the world is to have the chance to remain within 1.5 degrees of warming and halt the catastrophic decline in biodiversity. September 2024 will also mark ten years since the New York Declaration on Forests (NYDF). Signed by governments, companies and non-state actors, this statement calls for global action to end loss of forests and achieve substantial progress on restoration by 2030. While much has been learned in how to take effective action, and many initiatives are underway, progress in achieving the NYDF’s goals remain alarmingly off track: by 21% according to a comprehensive study published in October 2023.
Closer to home, we work with European companies and other stakeholders committed to achieving more sustainable supply chains. These organisations – such as those supporting the UK Soy Manifesto – aim to make deforestation- and conversion-free soy the norm on the UK market by 2025. These remain challenging targets, where a combination of tenacity and creativity will be needed to ensure they become a reality. Understanding what is really happening in these supply chains, and engaging actors along them to explore opportunities for change, are needed to drive greater and faster progress.
New opportunities to drive progress
Multiple approaches are needed to ensure that commodities are produced and used sustainably. We work with individual companies to develop comprehensive strategies for progress, helping engage across the business and down the supply chain to find effective ways forward. Gathering data to review progress, and identifying new approaches where it is lacking, is a core service we provide to our clients. At the same time, we convene several coalitions to identify where pre-competitive, collective action can help drive further progress. For example, a group of retailers represented by 3Keel led calls on the UK Government to introduce deforestation-free regulation.
The announcement of new guidance from the UK competition watchdog late last year, providing greater space for this type of collaboration in the interests of sustainability, creates the possibility of exciting new opportunities to drive greater collective action.
Alongside the voluntary initiatives, 2024 will mark a sea change for supply of forest-risk commodities into the EU, one of the largest and most high-value markets globally. The EU Deforestation Regulation will come into force from 30 December, creating new obligations for key forest-risk commodities to be deforestation-free, legally produced and traceable back to source. The shift from voluntary commitments to legal requirements is an exciting development, and one also emerging in the UK and the US. While we don’t underestimate the challenges, the potential to level the playing field for those committed to sustainable sourcing is very welcome. Plus the expected increase in data flowing through the supply chain opens up new opportunities to drive further progress.
Charting the way ahead
The challenge in sustainability is often to deal with considerable complexity, and a lack of information, to still find ways to drive positive real-world impact. It can be easy to be distracted by the latest trends, by what is easiest to measure rather than what is most important – or equally to become paralysed by inaction in the face of competing challenges. At 3Keel, we embrace complexity and pride ourselves on cutting through the noise, to identify what is both pragmatic and ambitious. It’s an exciting journey to be on.
https://www.3keel.com/wp-content/uploads/2024/03/AGR_cat_mc_sf.webp
200
359
Catherine McCosker
https://www.3keel.com/wp-content/uploads/2023/04/3keel_logo-1.png
Catherine McCosker2024-03-22 09:00:372024-03-25 17:35:56“We need to double-down on collaboration, as climate change hits agriculture”
