Problem
After updating their sourcing policy in 2014, Bunge Loders Croklaan B.V committed to having a deforestation-free value chain by 2025. That means tackling the company’s scope 3 emissions that result from agricultural production in the supply chain.
To get there, they needed a system that could alert them to forest change in the areas they supply from, to help engage with suppliers and resolve deforestation risks without delay.
As Bunge trades in the EU Single Market, they also need a service that can verify their products are not associated with deforestation to comply with the EU’s imminent Regulation on Deforestation Free Products.
Solution
Satelligence provides an alert system that can detect land-use changes in near real time, so that the Bunge Loders Croklaan B.V sustainability team can take immediate on-the-ground action.
Our alert system uses satellite data capable of 10m resolution to provide alert bulletins every one to two weeks. The system detects vegetation cover changes like plantation development, road development, encroachment, fire damage in natural forest, riparian, peatland areas, conservation areas and other high risk zones of special interest. The easy to use platform categorises risks and prioritises them, saving time and money. Satelligence’s data is E&Y verified, so it meets the criteria for Verified Deforestation Free production.
Thanks to this service, Bunge Loders Croklaan B.V can preclude 3rd party involvement by identifying, assessing and mitigating risks proactively to lower their scope 3 emissions and protect their reputation.
Satelligence dashboard, showing alerts in real time
Impact
In 2018, 2019 and 2020, we actively monitored more than 30 million hectares of land. Using Satelligence’s system, Bunge Loders Croklaan B.V. could demonstrate to third parties (campaigning NGOs, financial institutions, etc.) that it was keeping track of any change happening in these areas of the value chain. Timely, independent, and verified information guides conflict resolution with key stakeholders.
Prior to their involvement with Satelligence, verifying palm oil as deforestation free and proving sustainability to customers, stakeholders and the general public, could be a painstaking task obstructed by superfluous data and opaque relations with stakeholders. Now, Bunge Loders Croklaan B.V. can quantify the sustainability of their operations by demonstrating that their products are Verified Deforestation Free.
Since the collaboration began, Bunge Loders Croklaan B.V. have achieved 100% traceability across their production areas in South America. Our Traceability to Mill (TTM) rate, i.e. the degree of our ability to track all the mills in a supply chain, is 98%.
We also monitor for Bunge Loders Croklaan B.V. in selected districts in Honduras, the Sabah and Peninsular regions of Malaysia, Sumatra, Kalimantan and Sulawesi in Indonesia. We monitor over 250,000 km² of forest, peatland and surrounding areas.
Combining real-time satellite monitoring with ownership supply chain data, each concession can be checked with high accuracy
The True Value of Sustainable, Transparent Palm Oil Revealed
European Association of Remote Sensing Companies (EARSC) research into the collaboration found that by cementing the company’s reputation for sustainability and transparency, Satelligence’s alerting system has had a significant impact on Bunge Loders Croklaan B.V. valuation. Corporate reputation needn’t be considered an asset in the abstract. If we follow Reputation Dividend’s model for attaching value to corporate reputation, that’s a possible €3.4 billion in assets protected. According to the EARSC, Bunge stands to save around €5 million a year in favourable interest rates on sustainability-linked loans.
By monitoring Bunge Loders Croklaan B.V suppliers, we help build responsible supply chains. We look forward to continuing our collaboration with Bunge Loders Croklaan B.V and helping them achieve deforestation free supply chains.
“Bunge has long believed in the power of technology to help create a more sustainable future. That’s why we’re proud and excited to see our long-term partnership with Satelligence extended to Global Forest Watch to improve transparency and enable a more sustainable supply chain.” Robert Coviello, Senior Vice President, Sustainability & Government Affairs.
Bunge Loders Croklaan B.V. are leaders in agribusiness, food and ingredients. BLC is a global producer and supplier of sustainable premium quality vegetable oils and fats for the food manufacturing industry. Their products, such as oils and milled grains, are key ingredients for consumer and restaurant brands – and in home kitchens around the world.
