{"id":772499,"date":"2026-05-12T05:54:10","date_gmt":"2026-05-12T12:54:10","guid":{"rendered":"https:\/\/www.esri.com\/about\/newsroom\/?post_type=blog&#038;p=772499"},"modified":"2026-05-12T07:43:27","modified_gmt":"2026-05-12T14:43:27","slug":"how-bunge-built-palm-oil-supply-chain-traceability","status":"publish","type":"blog","link":"https:\/\/www.esri.com\/about\/newsroom\/blog\/how-bunge-built-palm-oil-supply-chain-traceability","title":{"rendered":"Years Ahead of Regulation: Inside Bunge\u2019s Traceability and Monitoring Platform"},"author":671,"featured_media":0,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"sync_status":"","episode_type":"","audio_file":"","transcript_file":"","podmotor_file_id":"","podmotor_episode_id":"","castos_file_data":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_links_to":"","_links_to_target":""},"categories":[],"tags":[493442,280142,40532,385572,493444],"industry":[],"esri-blog-category":[478732],"esri_blog_department":[478182],"class_list":["post-772499","blog","type-blog","status-publish","format-standard","hentry","tag-bunge","tag-deforestation","tag-monitoring","tag-palm-oil","tag-smallholder","esri-blog-category-agriculture","esri_blog_department-natural-resources"],"acf":{"video_source":"","video_start":"","video_stop":"","short_description":"Bunge spent eight years building palm oil traceability that was ready when European Union deforestation rules arrived.","pdf":{"host_remotely":false,"file":"","file_url":""},"flexible_content":[{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Right","content":"Bunge spent eight years building GIS-based traceability systems and ground-level supplier relationships in Malaysia\u2014positioning the company ahead of European deforestation regulations.\r\n<p style=\"font-weight: 400;\"><strong>Key Takeaways<\/strong><\/p>\r\n\r\n<ul>\r\n \t<li>Agribusiness solutions provider Bunge combines satellite monitoring with supplier engagement to verify palm oil supply chains across millions of hectares in the global tropics.<\/li>\r\n \t<li>Seven years before European Union deforestation rules arrived, Bunge built the scoring model that the palm oil industry now uses to prove deforestation-free sourcing.<\/li>\r\n \t<li>Bunge maps the supply chains of its suppliers and provides the resultant maps to smaller producers, giving them something they couldn\u2019t build alone.<\/li>\r\n<\/ul>","snippet":""},{"acf_fc_layout":"content","content":"Bunge turns deforestation monitoring into an operational, repeatable workflow\u2014connecting satellite alerts, historical imagery, traceability, and compliance records in one place so that teams can verify what\u2019s happening on the ground and act with suppliers when needed. Long before the EU Deforestation Regulation (EUDR) arrived, Bunge had already built the scoring model the palm oil industry would adopt as its standard.\r\n\r\nTwice a month, a report arrives in the inbox of Bunge Malaysia\u2019s tropical oils sustainability manager, Pitt Onn Wong.\r\n\r\nThe report comes from a satellite-monitoring partner that watches Southeast Asia\u2019s palm landscape for signs of forest clearing and sends alerts when land-clearing operations overlap a supply chain. Some alerts are real. Some are false positives. Wong is responsible for validating whether an alert needs action.\r\n\r\nHe opens the report, pulls up Bunge\u2019s geographic information system (GIS) mapping platform, and overlays the alerts with satellite imagery. What did this location look like 5 years ago, or 10? If land clearing is recent and the area is associated with a supply chain linked to Bunge, he contacts the supplier affiliated with the grower in question. That supplier has the direct commercial relationship\u2014and the leverage\u2014to ask the right questions.\r\n<h3><strong>How a New Supplier Gets Vetted<\/strong><\/h3>\r\nWhen Bunge\u2019s sourcing team wants to engage a new supplier, the request lands with Tijs Lips, who manages tropical oils sustainability from Bunge\u2019s Netherlands office. Through a dedicated questionnaire, the supplier provides a set of information, including traceability data. Lips then verifies it using a map-based workflow he built with ArcGIS technology\u2014checking for noncompliant land-use change, organizing documentation, and giving teams a single source of truth they can use across sustainability priorities. Covering millions of hectares across the global tropics where oil palm grows, the system gives teams in Southeast Asia, Latin America, Africa, and Europe a shared view of data, dashboards, and verification tools\u2014so a supplier can be assessed; monitored; and, when needed, brought into compliance."},{"acf_fc_layout":"image","image":772660,"image_position":"center","orientation":"horizontal","hyperlink":""},{"acf_fc_layout":"content","content":"With this data and system at hand, Lips pulls up high-resolution satellite imagery to investigate detected land-use change. Is this a new land clearing? Was there ever forest here? Or is it part of a replanting cycle, which happens on established plantations roughly every 30 years and, from a satellite, can look like clearing?\r\n<p style=\"font-weight: 400;\">\u201cIf we look at the historic imagery and see a few cycles of clearing, it\u2019s replanting,\" Lips said. \"In some regions, local governments also mapped historic land use, which helps us identify established plantations and exclude false alerts from our monitoring system. But sometimes you still doubt, and that\u2019s when we have to go back to the supplier.\u201d<\/p>\r\nOnly after the land-use change analysis is completed and verified with no deforestation does a new supplier move through the compliance framework, with each step logged and reviewed before any palm oil from that source enters the supply chain."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Right","content":"<h3 style=\"font-weight: 400;\"><strong>The Language of Sustainable Palm Oil<\/strong><\/h3>\r\n<p style=\"font-weight: 400;\"><strong>FFB<\/strong>\u2014fresh fruit bunches, the harvested fruit that leaves the plantation for the mill<\/p>\r\n<p style=\"font-weight: 400;\"><strong>CPO<\/strong>\u2014crude palm oil, which is extracted from FFB at the mill and is what Bunge purchases<\/p>\r\n<p style=\"font-weight: 400;\"><strong>NDPE<\/strong>\u2014No Deforestation, No Peat, No Exploitation, the sourcing commitment framework<\/p>\r\n<p style=\"font-weight: 400;\"><strong>NDPE IRF<\/strong>\u2014the industry reporting framework built on NDPE commitments, now the standard across major buyers<\/p>\r\n<p style=\"font-weight: 400;\"><strong>RSPO<\/strong>\u2014Roundtable on Sustainable Palm Oil, the certification body<\/p>\r\n<p style=\"font-weight: 400;\"><strong>EUDR<\/strong>\u2014EU Deforestation Regulation, which requires geolocated proof of deforestation-free sourcing for products entering Europe<\/p>\r\n<p style=\"font-weight: 400;\"><strong>TTM\/TTP<\/strong>\u2014traceability to mill\/traceability to plantation<\/p>","snippet":""},{"acf_fc_layout":"content","content":"<h3 style=\"font-weight: 400;\"><strong>When An Alert Arrives, Investigation Comes First<\/strong><\/h3>\r\n<p style=\"font-weight: 400;\">Not every satellite alert signals deforestation tied to palm expansion. Forest plantations cultivated for pulp and paper production undergo periodic harvesting cycles that can look, from orbit, like deforestation. Nomadic communities in parts of Indonesia clear land, plant cash crops, and move on\u2014a traditional practice with no connection to large-scale land conversion. Flooding in Malaysian lowlands can suppress vegetation and trigger alerts.<\/p>\r\n<p style=\"font-weight: 400;\">\u201cIn Thailand, we received alerts in hilly areas,\u201d Wong said. \u201cWhen we overlaid the alerts with satellite imagery and traceability in the GIS system\u2014and then followed up through supplier engagement\u2014we learned some alerts were linked to land preparation for temples and Buddha statues. In Malaysia, flooding can trigger false alerts from land-use change detections. Not every alert is what it appears to be. Investigating before acting is the only way to know.\u201d<\/p>\r\n<p style=\"font-weight: 400;\">When an alert is genuine and satellite imagery shows new land clearing linked to a supply chain, Bunge notifies the supplier that holds the commercial relationship. The supplier investigates. If deforestation is confirmed, the company responsible for land clearing is suspended under Bunge\u2019s No Deforestation, No Peat, No Exploitation (NDPE) noncompliance process.<\/p>\r\n<p style=\"font-weight: 400;\">Suspension is temporary. One Malaysian producer, suspended after clearing forest in Papua New Guinea, worked through a multiyear recovery plan in a designated site\u2014publishing its commitments; organizing stakeholder engagement; and inviting key buyers, including Bunge, to visit the site and observe restoration work firsthand.<\/p>\r\n<p style=\"font-weight: 400;\">\u201cGoing there gives us the opportunity to see what\u2019s happening on the ground,\u201d Wong said. \u201cAt the end, the company asked: What\u2019s next? What would you like us to do to improve?\u201d<\/p>\r\n\r\n<h3 style=\"font-weight: 400;\"><strong>The Economic Pressure Behind the Problem<\/strong><\/h3>\r\n<p style=\"font-weight: 400;\">Well-managed, mature plantations are capable of producing up to 30 metric tons of fresh fruit bunches per hectare. Smallholders typically yield far less, around 12 metric tons, due to the absence of quality fertilizer, better planting materials, and knowledge of good agricultural practices.<\/p>\r\n<p style=\"font-weight: 400;\">A low-yielding smallholder may see one solution: land expansion. That scenario, multiplied across thousands of smallholders, is one of the primary drivers of deforestation in palm-growing regions. \u201cFor some people, the forest is their supermarket,\u201d Lips said. \u201cFor others, yields aren\u2019t enough, and they think about clearing more land. Better agriculture practices can help them increase yields and think differently about their own business.\u201d<\/p>"},{"acf_fc_layout":"gallery","gallery_images":[772672,772508,772505,772507]},{"acf_fc_layout":"content","content":"<p style=\"font-weight: 400;\">Keeping smallholders inside the supply chain requires more than monitoring. The same traceability and mapping work that supports compliance also shows where support is most needed\u2014and helps keep smallholders included rather than pushed out. In Sambas, West Kalimantan, Bunge collaborates with Musim Mas Group, a palm oil producer, on a smallholder program that has trained more than 1,000 independent smallholders in good agriculture practices, NDPE principles, and business management. The program trains local village extension officers, who then carry that knowledge into their communities\u2014helping smallholders improve land management and increase yields on existing land, reducing pressure to expand into forest.<\/p>\r\n\r\n<h3 style=\"font-weight: 400;\"><strong>The Model the Industry Now Uses<\/strong><\/h3>\r\n<p style=\"font-weight: 400;\">Oil palm has been cultivated in Malaysia for over 100 years. Fresh fruit bunches are sold to mills, which extract crude palm oil. Bunge purchases crude palm oil from mills, then refines it into specialty ingredients for such products as chocolate, cosmetics, and candles. The global agribusiness aligned its sourcing with NDPE commitments in 2016, responding to growing demand from consumers for accountability. That same year, Lips built a scoring model to verify whether a supply chain qualified as deforestation free. No industry standard existed yet.<\/p>\r\n<p style=\"font-weight: 400;\">\u201cWe developed the model as Verified Deforestation Free and shared it with the industry,\u201d Lips said. \u201cLater, the Palm Oil Collaboration Group [POCG] implemented a similar model. That framework is called the NDPE Implementation Reporting Framework [IRF]. The industry uses it, including us.\u201d<\/p>\r\n<p style=\"font-weight: 400;\">Creating a model was only the first step. To use it requires underlying data\u2014down to the plantations and smallholder farms that feed each mill\u2014and a practical way to collect, check, and share that information. That work is where traceability becomes a joint effort, built mill by mill.<\/p>"},{"acf_fc_layout":"gallery","gallery_images":[772502,772649,772506]},{"acf_fc_layout":"content","content":"<h3 style=\"font-weight: 400;\"><strong>How A Supply Chain Map Gets Created\u2014and Shared<\/strong><\/h3>\r\n<p style=\"font-weight: 400;\">NDPE compliance demands traceability to each plantation or production area, ensuring that every step in the supply chain is verifiably free from deforestation since 2016. Bunge\u2019s sustainability team obtains traceability data from palm oil mills: the names and coordinates of the plantations and smallholder farms supplying the data, plus the boundaries of oil palm concessions and the catchment area. Lips plots it in ArcGIS Online.<\/p>\r\n<p style=\"font-weight: 400;\">A supply chain map of the palm oil mill is then generated, showing where every plantation and concession is located as well as how far the sourcing area extends from a typical 50-kilometer radius catchment of the mill. For smaller mills without the required resources to generate these maps themselves sharing the map is how Bunge makes compliance possible.<\/p>\r\n<p style=\"font-weight: 400;\">\u201cThey can use this map to show their other buyers as well. It avoids duplication of work. They understand why the data was collected and what it can do for them,\u201d Wong said.<\/p>\r\nThat same logic extends to the compliance documentation that makes a supplier eligible to stay in the supply chain. For large plantation companies with dedicated compliance teams, that\u2019s already a significant task. For smaller private or commercial palm oil producers, the burden can be insurmountable.\r\n<p style=\"font-weight: 400;\">\u201cIf big plantation companies with dedicated teams have a tough time compiling those documents, you cannot imagine how difficult it is for a smallholder,\u201d Wong said. \u201cThe fear is these folks will be sidelined.\u201d<\/p>\r\n<p style=\"font-weight: 400;\">\u201cThe paperwork is a pain,\u201d he continued, \u201cIf they can\u2019t fulfill the requirements, they just go to other buyers with less demanding requirements. They don\u2019t have to deal with the cost and headache.\u201d<\/p>\r\n<p style=\"font-weight: 400;\">Bunge\u2019s answer is to stay engaged on both fronts\u2014building the documentation capacity producers need while maintaining supply chains that don\u2019t exclude smallholders that aren\u2019t there yet.<\/p>\r\n<p style=\"font-weight: 400;\">\u201cOther companies just send a list of requirements,\u201d Lips said. \u201cThe supplier has no idea how to deliver it, what to do with it, what it means. We sit down with them face-to-face, explain what the data means, explain what we can offer in return, and then they\u2019re willing to share.\u201d<\/p>"},{"acf_fc_layout":"gallery","gallery_images":[772650,772645,772651]},{"acf_fc_layout":"content","content":"<h3 style=\"font-weight: 400;\"><strong>97 Percent Traceable\u2014and Closing the Gap<\/strong><\/h3>\r\n<p style=\"font-weight: 400;\">When the European Union passed its deforestation regulation requiring palm oil entering Europe to show deforestation-free production with precise geolocation since the end of 2020, Lips reviewed what the regulation demanded.<\/p>\r\n<p style=\"font-weight: 400;\">\u201cWe already had systems for everything required for traceability and verification of deforestation-free production,\u201d he said. \u201cWe could leverage what we already had within our ArcGIS system and prepared an EUDR [EU Deforestation Regulation] tailored dashboard.\u201d<\/p>\r\n<p style=\"font-weight: 400;\">The system can now cross-reference plot boundaries against three different deforestation datasets. Plots that are flagged in orange have a potential overlap. Green means clean. An analyst reviews each orange flag and either clears it or escalates it. Sometimes the flag is a data error\u2014like a patch of established rubber plantation that's being misread as forest. Lips pulls up the historical imagery, confirms palm planting going back decades, and updates the status. The orange disappears.<\/p>\r\n<p style=\"font-weight: 400;\">By late 2025, Bunge could trace 97 percent of its global palm oil supply chain to the plantation. The remaining three percent\u2014suppliers without the data infrastructure or leverage\u2014is what the team is working on. The approach is the same one that built the system: Sit down with the supplier, explain what the data means, show them a map of their own supply chain, and give them a reason to share.<\/p>\r\n<p style=\"font-weight: 400;\">\u201cNumbers on a dashboard don\u2019t show how you got there,\u201d Lips said. \u201cThey don\u2019t show what it takes to close that last gap. You need people on the ground who get notified, who understand what is behind the numbers, and who know which suppliers to engage with and how.\u201d<\/p>\r\n<p style=\"font-weight: 400;\">According to the World Resources Institute\u2019s <a href=\"https:\/\/www.wri.org\/news\/release-global-forest-loss-shatters-records-2024-fueled-massive-fires\">Global Forest Watch platform<\/a>, Malaysia\u2019s primary forest loss declined 13 percent in 2024. Indonesia\u2019s dropped 11 percent. Both countries moved out of the global top 10 for tropical forest loss, in a year when global forest loss increased elsewhere.<\/p>\r\n&nbsp;\r\n<p style=\"font-weight: 400;\">Learn more about how <a href=\"https:\/\/www.esri.com\/en-us\/industries\/technology\/focus-areas\/supply-chain-operations-and-analysis\">companies apply GIS to map, visualize, and monitor supply chains<\/a> for operational awareness and transparency.<\/p>"},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Center","content":"<h3 style=\"font-weight: 400;\"><strong>Why Work in Palm Oil?<\/strong><\/h3>\r\n<p style=\"font-weight: 400;\">Tijs Lips chose one of sustainability\u2019s toughest challenges.<\/p>\r\n<p style=\"font-weight: 400;\">Palm oil has a reputation problem. Even his mother buys palm-oil-free butter despite knowing what Lips does for a living. At parties, he\u2019s seen people walk away when they learn he works in the industry.<\/p>\r\n<p style=\"font-weight: 400;\">But for Lips, manager of tropical oils sustainability at Bunge, palm oil\u2019s troubled reputation is precisely why the work matters. This is where he can make the biggest difference.<\/p>\r\n<p style=\"font-weight: 400;\">Palm oil appears in hundreds of products ranging from chocolate to cosmetics. It sustains not just individual smallholders but also entire regional economies across Southeast Asia, Latin America, and Africa. The scale of its importance\u2014and its environmental challenges\u2014makes the sustainability work both difficult and essential.<\/p>\r\n<p style=\"font-weight: 400;\">\u201cWhat I find most interesting is that I get to connect with growers and suppliers around the world,\u201d Lips said. \u201cThey tell the real story of why deforestation is happening, or why they stopped deforesting, or why they struggle with the ever-moving industry compliance frameworks. There are so many stories behind the work.\u201d<\/p>\r\n<p style=\"font-weight: 400;\">There\u2019s no perfect supply chain, but measurable progress on deforestation proves the approach works.<\/p>\r\n<p style=\"font-weight: 400;\">\u201cYou understand why you\u2019re doing it,\u201d Lips said. \u201cThat feeling wouldn\u2019t be there if you chose an easier path.\u201d<\/p>","snippet":""}],"references":null},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.9 (Yoast SEO v25.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Inside Bunge\u2019s Traceability and Monitoring Platform<\/title>\n<meta name=\"description\" content=\"Bunge spent eight years building palm oil traceability that was ready when European Union deforestation rules arrived.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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