森林砍伐，遇见透明度：监管如何重塑全球市场

How regulation is reshaping global markets Introduction Accounting for about 30% of the Earth’s surface, forests support 80% of theplanet’s biodiversity and 1.6 billion people. Acting as a sponge, forests hold upto 2.4 billion tons of carbon every year, as they provide clean air and water, andregulate climate.1While they are critical for the thriving of human beings, forestsare currently under severe stress. With 420 million hectares lost in the last 30 years - accounting for roughly 11% ofthe total forest area of the world - commodity driven deforestation produces ~444million tons of CO2 every year. This endangers our food and agricultural systems asthe later indirectly contributes to lower crop yields thus accelerating the scarcity ofsome commodities.2,3 A striking example is the steading decline of West African cocoa harvests betweenJuly 2022 and Feb 2024 (8-10%). The resulted in a steep rise in price (136%)4,5Similarly, Ethiopian coffee yield is likely to drop by 30% around 2030.6 Europe alone is responsible for 10% of global deforestation,largely driven by its consumption of palm oil and soya.7Totackle the issue, theEuropean Deforestation-free ProductsRegulation (EUDR)was brought into force in June 2023.Under EUDR, all companies importing or placing cocoa,coffee, palm oil, soy, cattle, rubber, wood, and some oftheir derivatives on the EU Market are to ensure these aredeforestation-free. To elaborate, EUDR requires relevantcompanies to: EUDR is in line with the EU’s efforts to contain deforestationand forest degradation under theEU Green Deal,complementing other initiatives, such asEU BiodiversityStrategy for 2030andFarm to Fork Strategy. Thesemeasures could lead to a reduction in carbon emissionsamounting to 32 million tons per year.8 The regulation is ambitious. Its comprehensive naturerequires extensive changes in business practices, whichneed to be implemented before 2025, making compliance anotable task for economic players. Establish traceability: The regulation is bold in approach, ambitious in goals, andfar-reaching in consequences. A chain of custody must be created to trackproducts from consumers to sources usinggeolocation data. Plus, safeguards are tobe implemented to prevent the mixing ofcompliant and non-compliant materialsthroughout the chain. 10% Implement a Due Diligence system: Businesses must conduct risk assessments forcompliance with the EUDR deforestation andillegality criteria. of global deforestation, largelydriven by its consumption ofpalm oil and soya Report on the conclusion of the duediligence: Companies must create due diligencestatements for imports and exports, detailinggeolocation and risk assessments, with annualreporting required for compliance monitoring. An urgent need forbusinesses to comply witha complex regulation Companies have less than a year to comply toEUDR large set of requirements deemed difficultto implement in tough economical landscapesand strenuous chains of custody. Delivering accurate first-mile traceability poses challenges because data volume grows as it goes downthe supply chain. In a non-streamlined flow of material, eachmovement amplifies the data volume, triggering additionalrecords and potentially overwhelming systems. The regulation is built on the principle of strict traceability,requiring companies to collect precise information on wherecommodities originate. However, this is challenging as at the“first mile,” significant traceability risks arise. Commoditiesare often sourced from economically disadvantaged regions.This incentivizes producers and market middlemen tolaunder products by physically infiltrating non-compliantmerchandise in deforestation-free chains as well as falsifyingtraceability records to evade detection. Raw material scarcity Due to the local farming practices, inadequate infrastructure,and proximity of major supply regions to rainforests,substantial portions of commodity volumes are expectedto be discarded from the European market, leaving relevantplayers short of supply. The chain reaction can disrupt criticalnodes of supply chain networks, jeopardizing businesscontinuity of Europe based sites. Discontinuity in data flows The EUDR mandates the collection, organization, and sharingof extensive data, including detailed materials characteristics,origins of components, and tier one to N details. This isessential to perform due diligences and to create associatedstatements at custom clearance. To avoid slowing down theflow of goods, businesses need this data to be accessible inreal time. Ensuring data integrity and immediate availability To tackle these challenges, companies need to strategicallyconsider how implementing due diligence and reportingrequirements will sharpen their focus on strategy,operations, and data management. About Capgemini Invent As the digital innovation, design and transformation brand of the Capgemini Group, Capgemini Invent enables CxOsto envision and shape the future of the