There are massive incentives for companies to establish deforestation-free supply chains to meet the consumer’s demand. For example, the EU Commission’s proposed regulation recognizes the importance of ensuring the commodities that enter the European market are free from deforestation, peat clearing, and the destruction of critical ecosystems.
Companies should prepare themselves for the inevitable rise of sourcing requirements from key markets in the near future. EQ recognizes the importance of the following in the formulation of “deforestation-free” criteria: legal compliance and group-level commitment to NDPE, plus traceability of FFBs to the origin of productions.
The progress of each step is to be evaluated, upon which VDF assessment can be conducted. Depending on the evaluation results, the VDF can be categorized as “In Compliance”, “Progressing” and “Non-compliant”.