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A Comprehensive Guide to
Mastering Geolocation Data
Collection for EUDR
Whitepaper
Table of Contents
Overview of the EU Deforestation Regulation and Its Importance
3
EUDR: Information Collection Requirements
4
Understanding Geolocations
5
Submitting Geolocation Data for EUDR Compliance
7
Challenges of Gathering Geolocation Data for EUDR Compliance
8
Methods to Collect Geolocation Data
9
Manual Methods for Collecting Geolocation Data
9
Streamlining the Geolocation Data Collection with TradeAware
10
The Commercial Network: How it works
11
Security Aspects of the Commercial Network
12
FAQ
13
Conclusions
15
Overview of the EU Deforestation
Regulation and Its Importance
The EU Deforestation Regulation (EUDR) is a regulatory framework introduced by the
European Union to reduce deforestation and forest degradation, which are largely
caused by the consumption of commodities such as palm oil, cocoa, coffee, rubber,
and timber.
By requiring transparency and accountability within supply chains, the EUDR aims to
ensure that products entering the EU market are not linked to illegal deforestation
activities.
This regulation is not only a legal obligation, but also a significant step towards
sustainable development, biodiversity conservation and climate change mitigation.
For companies, compliance with the EUDR improves their market presence and brings
them in line with global environmental goals.
EUDR: Information Collection Requirements
To adhere to the EUDR, companies must collect detailed information about the origin of
their commodities and the supply chains they traverse.
This involves documenting the entire journey of a product, from its source to the final
point of sale within the EU.
Product quantity Country of Geolocation of
of the relevant production and, all plots of land
products where relevant,
parts there of
Contact Verifiable Verifiable
information of information that information on
any suppliers products are production in
and recipients deforestation-free accordance with
local legislation
Key data points required (Article 9 of EUDR) include
Product quantity of the relevant product
Country of production and, where relevant, parts thereo
Geolocation of all plots of land used for productio
Contact information of any suppliers and recipient
Verifiable information that products are deforestation-fre
Verifiable information on production in accordance with local legislation
In this guide, we will focus on the collection of geolocation data and supplier contact
information, which are critical for compliance.
By systematically collecting and managing this data, companies can build more resilient
and transparent supply chains, fostering greater trust and collaboration with
stakeholders.
Understanding Geolocations
Geolocation within the EUDR context refers to the precise geographic coordinates
identifying the exact location where commodities are produced.
This data is crucial as it allows regulators and companies to trace products back to their
origins, ensuring they are not sourced from areas subject to illegal deforestation.
Geolocation data includes latitude and longitude coordinates, plot boundaries, and any
relevant geographic identifiers. Geolocation data is typically provided as polygons that
mark the exact boundaries of a plot of land. This level of detail helps in verifying
compliance with EUDR by providing a clear, traceable link between products and their
source locations, which is essential for maintaining transparency and accountability in
the supply chain.
The dotted yellow polygon marks a rubber plantation in the TradeAware application.
For plots of land of more than 4 hectares, the geolocation must be
provided using polygons, meaning latitude and longitude points of six
decimal digits to describe the perimeter of each plot of land.
For plots of land under 4 hectares, operators (and traders which are not
SMEs) can use a polygon or a single point of latitude and longitude of six
decimal digits to provide geolocation. Establishments where cattle are
kept can be described with a single point of geolocation coordinate.
Importance of Geolocation Data in EUDR Compliance
Geolocation data is a cornerstone of EUDR compliance for several reasons.
It ensures traceability, allowing companies and regulators to monitor the exact
origin of commodities. This is vital in verifying that products are sourced from
deforestation-free areas.
Accurate geolocation data supports risk assessments and the due diligence
processes, enabling companies to identify and mitigate potential environmental
risks within their supply chains.
The use of geolocation data promotes transparency, helping companies build
trust with consumers and stakeholders by demonstrating a commitment to
sustainable practices.
Ultimately, geolocation data is not only a regulatory requirement but also a tool for
fostering environmental stewardship and corporate responsibility.
Submitting Geolocation Data for EUDR Compliance
To comply with the EUDR, geolocation data must be submitted in a precise and
verifiable manner.
Businesses need to provide the geographical coordinates of every plot of land where
the relevant commodities were produced.
The geolocation information should be included in the due diligence statements and
maintained for at least five years, ready for review by competent authorities to confirm
compliance with deforestation-free requirements.
The geolocation data for EUDR compliance should be formatted as follows:
1
Coordinates: Use latitude and longitude coordinates with at least six
decimal digits to ensure precision.
2
Plot Details: For plots larger than four hectares, the geolocation must
be provided using polygons. These polygons should have sufficient
latitude and longitude points to accurately describe the perimeter of
each plot.
3
File Format: Geolocation data can be submitted in standard geospatial
data formats such as GeoJSON, which allows for easy integration and
verification.
This format ensures that the geolocation data is precise, comprehensive, and easily
verifiable, meeting the stringent requirements set by the EUDR for traceability and
compliance.
Additionally, businesses should ensure that the data is collected and submitted in a
timely manner to avoid delays in compliance checks. It is advisable to use reliable and
accurate tools for geolocation mapping like TradeAware to minimize errors.
Challenges of Gathering Geolocation Data
for EUDR Compliance
One of the fundamental challenges in EUDR compliance is the complexity of gathering
accurate geolocation data.
For instance, a large company making chocolate spread may be purchasing palm oil but
might have no clear information about where it is grown exactly. This lack of
transparency is often compounded by the fact that suppliers themselves may not have
detailed knowledge of the exact origins of their commodities.
To comply with EUDR, businesses must trace their supply chains back to the source,
obtaining geolocation data for every plot of land used in production.
For bulk and composite products, all plots of land must be collected and checked. However,
for composite products containing multiple commodities, only the primary commodity needs
to be checked. This is because the Harmonized System (HS) code typically classifies the
product under a primary category. For example, in the case of a wooden chair containing
leather, the HS code (e.g., 9401, covering seats and parts thereof) classifies the product
mainly under wood, so only the wood plot requires geolocation verification.
This is a massive undertaking that involves not just direct suppliers, but also sub-
suppliers and various intermediaries within the supply chain.
The process requires overcoming significant barriers such as:
Low Awareness and Engagement: Many suppliers might be unaware of EUDR requirements or
reluctant to share detailed geolocation data.
Data Accuracy and Verification: Ensuring the accuracy of the provided geolocation data is a
challenge, necessitating third-party verification and cross-referencing with satellite imagery.
C ommunication and u tura arriers: Effective communication across different regions,
C l l B
languages, and cultures can hinder the data collection process.
Tec no ogica esistance: ome suppliers may be resistant to adopting new data-sharing
h l l R S
technologies, complicating the data collection process.
M anaging E tensi e Data: andling and organi ing data from numerous suppliers and sub-
x v H z
suppliers requires robust data management systems and governance frameworks.
The need to gather geolocation data from the very top of the supply chain, coupled
with the vast and varied nature of these supply chains, presents a daunting challenge
for businesses aiming to comply with EUDR.
Methods to Collect Geolocation Data
In working toward compliance with the European Union Deforestation Regulation
(EUDR), companies can select from various methods to track and document the
geographic origins of their products.
These methods range from traditional, labor-intensive approaches to more advanced
digital solutions designed to simplify and streamline data collection.
Below, we examine the benefits and limitations of both manual and technology-driven
methods, offering insights into how companies can achieve efficient, reliable data
gathering at scale.
Manual Methods for Collecting Geolocation Data
To comply with the European Union Deforestation Regulation (EUDR), companies can
use manual methods to track and document the geographic origins of their products.
These, however, are labor-intensive and time-consuming. They involve collecting
geographic coordinates and data from suppliers through emails and spreadsheets.
Moreover, this process demands extensive coordination with multiple suppliers,
aggregating diverse data types, ensuring completeness, and organizing the information
for risk assessments and compliance checks.
Manual collection often includes visiting production sites to gather precise geolocation
data using GPS devices, which are then manually entered into databases.
While feasible, these methods are error-prone and require significant human resources
for data management and verification. Given the complexity and scale of modern supply
chains, this can be overwhelming.
This is why more and more companies are adopting digital platforms and satellite-based
solutions such as TradeAware to streamline geolocation tracking, enhance data
accuracy, and improve management efficiency, thereby reducing the burden of manual
processes and ensuring better compliance with EUDR requirements.
Streamlining the Geolocation Data Collection with
the Commercial Network Feature within TradeAware
Satellite technology plays a pivotal role in achieving EUDR compliance. By leveraging
advanced satellite analytics, companies can accurately track and monitor their supply
chains.
At LiveEO, we have been at the forefront of the shift towards more sustainable and
deforestation-free supply chains. Our end-to-end solution, TradeAware, provides
accurate data on land use and its changes, i.e. the conversion of natural forest to
agricultural use, enabling businesses to identify and address deforestation risks
promptly.
A crucial aspect of EUDR compliance is the creation and submission of a due diligence
statement for each delivery, ensuring products are deforestation-free and meet all
relevant legislations. Our tool enables companies to submit due diligence statements
directly to the EU information system to ensure compliance with the EU Deforestation
Regulation (EUDR).
The Commercial Network in TradeAware Lite offers companies a transformative, free
tool for gathering geolocation data, enabling scalable supplier onboarding. This feature
simplifies the complex task of geolocation data collection through a secure,
collaborative platform.
The Commercial Network: How it works
The Commercial Network operates similarly to a social network, where companies can
send business invitations to their suppliers to establish business connections.
Companies can seamlessly request geolocation data from their suppliers, who can
further request information from their sub-suppliers.
This cascading process continues until all relevant plot data is mapped and accessible
on the platform, ensuring comprehensive data collection across the entire supply chain.
Tier N Supplier upload
E.g. an individual farmer
Geolocation of Plots
Tier 2 Supplier upload
E.g. an agricultural cooperative
Geolocation of Plots
Coop Auro
Contact Details
are only shared
between direct
connections
Tier 1 Supplier
E.g. a large commodity trader
Svenson Rubber
Operator
E.g. Buyer organization Information about plots
importing goods into the EU and their deforestation-
status shared downstream
Tako Tires
Security Aspects of the Commercial Network
The Commercial Network allows suppliers to share essential geolocation data without
exposing sensitive business information.
Contact details are only visible to the closest connection, safeguarding the
confidentiality of indirect supplier relationships.
What is more, as a SOC2-compliant organization, LiveEO guarantees the highest
standards of data security. This way, data shared within the Commercial Network is
secure and validated, ensuring that the information used for compliance is both
accurate and reliable.
The Commercial Network is accessible to all versions of TradeAware, including the free
TradeAware Lite version. By leveraging this tool, companies can significantly improve
their compliance processes, ensuring they meet EUDR requirements with greater ease
and efficiency.
Sign up for free for TradeAware Lite now to establish your Commercial Network on
TradeAware and transform your compliance processes.
FAQ
Q: My suppliers are not fully aware of the EUDR and their obligations. How can I
educate them?
A: Open communication is key. Share valuable resources like our EUDR Handbook with
your suppliers to help them understand their obligations under the EUDR. Regular
training sessions, webinars, and informational newsletters can also be effective in
keeping them informed and compliant.
Q: How do I ensure the accuracy of the geolocation data provided by suppliers?
A: Ensuring the accuracy of geolocation data from suppliers involves several key
strategies.
Firstly, leveraging advanced geospatial technologies such as AI-powered satellite
monitoring solutions can greatly enhance data precision. These technologies provide
real-time, high-accuracy data crucial for verifying the exact locations of supply sources.
Secondly, collaborating with independent third-party verification services adds an
additional layer of credibility by cross-checking the geolocation data provided. Cross-
referencing with satellite imagery and remote sensing technologies further validates the
information, allowing for visual confirmation of geographic details.
Finally, implementing a robust data validation framework, including regular audits and
multiple data source corroboration, ensures systematic identification and correction of
any inaccuracies.
By integrating these approaches, you can significantly improve the reliability of the
geolocation data in your supply chain, ensuring compliance and fostering sustainable
practices.
Q: What should I do if suppliers are unable to provide the required geolocation data?
A: Work collaboratively with your suppliers to identify and address barriers to data
collection. Provide support and resources to help them gather the required data. If
suppliers remain non-compliant, consider replacing them with those who can meet the
EUDR requirements.
Q: How can I manage suppliers who are not responsive to data requests?
A: Implement a structured follow-up process with reminders and deadlines. Offer
incentives for timely responses and establish contractual obligations for data sharing to
ensure compliance. Consistent follow-up and clear communication can help manage
non-responsiveness.
FAQ
Q: How can I effectively manage geolocation data from multiple suppliers and sub-
suppliers?
A: Utilize a centralized data management platform like TradeAware to streamline the
collection and management of geolocation data. Establish a clear data governance
framework to ensure data consistency and reliability across your supply chain.
Q: What can I do to overcome language and cultural barriers in communicating with
suppliers?
A: Use multilingual communication tools and services. Employ local intermediaries or
representatives who understand the cultural context and can facilitate communication.
Provide translated documents and training materials to ensure clear and effective
communication.
Q: How can I maintain open lines of communication with all my suppliers?
A: Establish regular check-ins and updates via newsletters, emails, and meetings. Create
a dedicated support team or contact point for suppliers to reach out to with questions
or issues. Consistent communication helps in building a strong, cooperative relationship
with your suppliers.
Q: How can I address supplier resistance to new data-sharing technologies?
A: Provide training and support to ease the transition to new technologies. Highlight the
benefits of compliance, such as improved market access and sustainability credentials.
Use contractual agreements to enforce data-sharing requirements and ensure
compliance.
Q: How can I protect sensitive information while sharing supplier data?
A: Use secure data transmission tools like TradeAware to ensure the safety of data
sharing. Only share compliance-related data and keep sensitive business information
confidential. Implement robust data security measures to protect the integrity and
confidentiality of supplier data.
Conclusions
The European Union Deforestation Regulation (EUDR) presents a significant step
towards sustainable development by curbing deforestation and promoting responsible
supply chain practices.
Understanding and mastering the geolocation data collection requirements is essential
for businesses aiming to comply with EUDR.
By embracing innovative solutions like the Commercial Network within TradeAware,
companies can navigate the complexities of EUDR compliance more effectively.
These efforts not only ensure legal adherence but also contribute to the global fight
against deforestation, enhancing the sustainability and integrity of supply chains
worldwide.
As businesses continue to prioritize environmental responsibility, mastering EUDR
geolocation data collection will be a crucial component of their commitment to a
greener future.
Start your Compliance Journey today!
Getting compliance-ready for EUDR is a complex challenge. We are here to help you get
started.
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