4C offers one-stop solution to fulfill requirements of the European Union´s Regulation on deforestion-free products (EUDR)
4C provides a unique process integrating deforestation checks, legality aspects, risk assessment, and traceability, all under one roof, in collaboration with Global Risk Assessment Services (GRAS) to benefit 4C-certified producers, traders, operators, and final buyers. 4C provides tailored services to all supply chain actors to meet the EUDR’s challenging requirements.
On June 29, 2023, the EU regulation on deforestation-free products entered into force. The regulation introduced new legal requirements aimed at combating deforestation and ensuring the legality of imports. It is the intention of this regulation to address global deforestation and promote sustainable practices in various commodity markets, including coffee. As a major economy and consumer of commodities linked to deforestation and forest degradation, the EU is partly responsible for this problem and wants to lead the way to solving it. By enforcing stringent standards that discourage deforestation, protect biodiversity, and uphold the rights of local communities, the EU intends to foster transparency, traceability, and responsible sourcing practices.
The Requirements of the EUDR
What is required by the EUDR?
Under the Regulation, any operator or trader who places various commodities incl. coffee and cocoa on the EU market, or exports from it, must be able to prove that the products do not originate from recently deforested land or have contributed to forest degradation. Therefore, they need to implement a due diligence process, including collection of information, risk assessment as well as risk mitigation. Based on this, the operator has to submit a Due Diligence statement to the EU Information system, allowing the import and trade of the respective commodities in the EU.
About GRAS – Global Risk Assessment Services
GRAS is an innovative service which uses latest remote sensing technologies to provide comprehensive sustainability risk assessments to implement and monitor sustainable and deforestation-free supply chains.
4C offers a solution
The EU Regulation recognizes certification or other third-party verified schemes to be used in the risk assessment procedure.
4C certification in combination with the geo-analytics from our partner organization Global Risk Assessment Services (GRAS) provides tailor-made solutions to EU importing operators and their suppliers. Using the available tools of risk assessments for deforestation and land use change by satellite image interpretation combined with additional data sourcing on national legislation, human rights statistics, claims by indigenous peoples, corruption index and law enforcement, conflicts on lands on the one hand and the on-the-ground experience from 4C certification and third-party verification on the other, are the backbone to build a strong due diligence case. Using the existing 4C Portal for uploading and replicating the coffee flow including all relevant actors through the supply chain will allow to demonstrate traceability adequately. Relevant documentation on ‘deforestation-free’ production can be attached to the coffee flow information.
4C covers the three-part approach
Part 1 Data Collection:
- 4C, through its integration of GRAS, provides the tools to collect geo-coordinates of the production areas (polygons and coordinates), farmer IDs, and the avenue to upload and forward any related legal documents to provide evidence on tenure and land use rights.
- Database to upload geo-information and related documents and checks on deforestation related to coffee production per coffee plot by comparing coffee plots with deforestation maps in a spatial geo analytic process.
Part 2 Risk Analysis:
- Service to in-depth analysis of the deforestation risk per coffee plot and to send an immediate alert to the coffee managing entity to verify deforestation on farmlands of their coffee producing members. In case of a match, the respective coffee production area will be excluded from the group of EU coffee producers prior to including harvested coffee into the supply chain.
- Verification tools for checking on national legal requirements, described in the EUDR and mitigate the risk through third party auditing.
Part 3 Risk Mitigation:
- The 4C Certification System provides the basis for risk mitigation through regular audits as well as continuous monitoring and reporting though the 4C Portal.
- Data collection: Accurate farm geo-location through GRAS tools. Existing data from over 320,000 farmers and polygon surveys on 9% of large farms
- Deforestation risk assessment: Pre-harvest analysis to maintain a deforestation-free supply chain.
- Legality: a) Self-assessment and third-party verification of legal coffee production. b) Data recording for EU import due diligence. c) EUDR compliance reporting and attestation
- Traceability: Farm-to-market tracking through 4C system integration.
- Risk mitigation: Support for sustainable farming practices and forest protection.
- Data Management: Collect and input producer data into 4C system.
- Risk Assessment: Access deforestation risk data for supply chain evaluation. Annual training participation for staff members provided.
- Traceability: Track coffee from farm to local facilities.
- Due Diligence: Generate compliance reports or request custom supply chain studies.
- Data Management: Centralized access to producer and local trader data.
- Risk Assessment: Evaluate supply chain deforestation risk based on aggregated data.
- Legality: Generate DDS reports and EUDR compliance reports. Self-declaration on legal production. Data storage for 5 years.
- Traceability: Track coffee from farm to international facilities.
- Due Diligence: Utilize data analysis and reporting tools for compliance.
- Product Availability: High volume of 4C certified, EUDR compliant coffee from January 1, 2025.
- Branding: Utilize 4C logo and claims.
- Transparency: Access coffee origin and deforestation risk data.
- Traceability: Track coffee from farm to consumer.
- Compliance: Generate EUDR compliance reports and access custom supply chain studies.
- Risk Management: Assess supply chain sustainability and identify risks.
- Innovation: Participate in system improvement initiatives.
4C system provides traceability through the entire supply chain
- 4C provides the traceability platform to receive information on coffee or cocoa, being inserted into the platform from the moment of sales of coffee or cocoa from the Managing Entity, with all relevant information of geo coordinates and producer IDs, date of production (harvesting date) and amounts per coffee or cocoa plot for further sales and purchasing of coffee or cocoa through the entire supply chain until the moment of entering the EU. Here, a report can be extracted with all relevant data to cover the due diligence statement for the EU importing operator. The same level of information can also be provided in case of any export from the EU after to third countries.
- 4C and GRAS provide the data storage system for 5 years storing relevant data on each batch of coffee entering or exiting the EU.
Companies Already EUDR Compliant with 4C:
"TLC realized that much of the EUDR compliance groundwork had actually already been laid through its ongoing 4C projects. The additional work involved sending the geo-coordinate data of farmers to a centralized deforestation database and verifying that the supply chain is deforestation-free. This realization allowed TLC to stay focused and methodically complete the necessary tasks".
Tuan Loc Commodities Company Limited
“Simexco highly appreciates 4C’s robust efforts in supporting enterprises to comply with the EUDR regulation. The GRAS risk assessment system offers the analysis of large datasets from various sources, providing a comprehensive view of potential risks and supporting decision-making. Furthermore, the system provides risk reports, enabling enterprises to proactively develop solutions and mitigation actions.”
SIMEXCO Daklak Ltd.
"With the support of the 4C organization, the registration and implementation of 4C EUDR is not too difficult. Currently, our company feels very happy to be able to export coffee to the European market with higher profits".
Sucden Coffee Vietnam Co. Ltd.
“The journey for EUDR compliance certification is challenging but also valuable. This is also an opportunity for Tin Thanh Dat to complete and enhance its sustainable coffee production system. After more than a year of tireless efforts, we have fully met the principles and criteria of the 4C Code of Conduct, complied with the EUDR and Vietnamese law, regarding topics such as farm management, labour rights, etc. and especially environmental protection".
Tin Thanh Dat Joint Stock Company