{"id":710972,"date":"2024-10-22T05:54:02","date_gmt":"2024-10-22T12:54:02","guid":{"rendered":"https:\/\/www.esri.com\/about\/newsroom\/?post_type=wherenext&p=710972"},"modified":"2024-10-25T06:20:24","modified_gmt":"2024-10-25T13:20:24","slug":"new-law-demands-geographic-coordinates-from-the-supply-chain","status":"publish","type":"wherenext","link":"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/new-law-demands-geographic-coordinates-from-the-supply-chain","title":{"rendered":"New Law Demands Geographic Coordinates from the Supply Chain"},"author":501,"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":[180112,280142,1461,490832],"department":[476822,488822],"wherenext-category":[],"industry":[],"class_list":["post-710972","wherenext","type-wherenext","status-publish","format-standard","hentry","tag-compliance","tag-deforestation","tag-sustainability","tag-traceability","department-data-and-ai","department-sustainability-risk"],"acf":{"short_description":"To comply with the European Union Deforestation Regulation (EUDR), companies will need a system of record like GIS to trace products.","pdf":{"host_remotely":false,"file":"","file_url":""},"flexible_content":[{"acf_fc_layout":"content","content":"Companies that sell or trade certain goods in the European Union (EU) will soon need a sharper view of their supply chains, thanks to a forthcoming environmental regulation."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Left","content":"Snapshot<\/strong>: An EU mandate set to go into effect in 2025 empowers the bloc to collect geographic coordinates related to products derived from cattle, cocoa, coffee, palm oil, rubber, soy, and wood. Penalties for noncompliance are steep.","snippet":""},{"acf_fc_layout":"content","content":"Adopted in 2023, the EU Deforestation Regulation (EUDR)<\/a> covers seven commodities\u2014cattle, cocoa, coffee, palm oil, rubber, soy, and wood\u2014and products derived from them. Businesses planning to sell or trade these commodities and products in the EU must conduct due diligence to ensure that no suppliers are linked to deforestation, forest degradation, or other abuses.\r\n\r\nEnforcement is likely to begin in late 2025. <\/a>Compliance will require a strong grasp of location. Among other provisions, businesses must \u201ccollect geographic coordinates of the plots of land where the commodities were produced,\u201d states a European Commission document<\/a>. Companies will also need to guarantee that product manufacturing meets local environmental protections and labor laws. A similar regulation\u2014the UKFRC<\/a>\u2014is in the offing in the United Kingdom.\r\n\r\nAs legislators increase scrutiny of global trade<\/a> and its impacts, many companies are using enterprise software known as geographic information system (GIS) technology<\/a> to monitor their supply networks. On a GIS dashboard, a business leader can see the locations of mills, factories, and farms in the context of trends in deforestation, pollution, wage rates, and other environmental and social factors.\r\n\r\nA chocolate manufacturer, for instance, can use GIS to collect the geographic coordinates of farms where cacao is grown, perform risk assessments on those suppliers, and identify where mitigation measures might be needed to comply with new laws.\r\n

Mapping the Links Between Commerce and Deforestation <\/strong><\/h3>\r\nWhile the EU is not itself a locus of deforestation, products consumed across the bloc are responsible for about 10 percent of global deforestation<\/a>. The EUDR, like other regulations that make up the European Green Deal, seeks to counteract harmful trends that destroy biodiversity and escalate greenhouse gas emissions, ultimately safeguarding both people and the planet."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Right","content":"Related Read:<\/strong>\r\n\r\n\/\/ Companies explain how they trace<\/a> nature-based products","snippet":""},{"acf_fc_layout":"content","content":"Once EUDR enforcement begins, failure to conduct due diligence could result in fines of up to 4 percent of a company\u2019s EU turnover<\/a>, or even temporary prohibition from trading in the bloc.\r\n\r\nSuch regulations are compelling firms to examine areas of their trade networks that have often gone undocumented. A recent CIPS & Deloitte report found that just 13 percent of firms are able to map their entire supply chain network<\/a>. As many as 22 percent have no visibility past immediate suppliers.\r\n\r\nExecutives are increasingly adopting location technology to establish traceability beyond Tier 1 partners. For example, a company that operates retail locations for the world\u2019s largest furniture manufacturer<\/a> uses GIS to monitor sustainable practices in forests from the US to Romania. Analysts use maps to track biodiversity metrics in timber stands and help the company achieve Forest Stewardship Council (FSC) certification.\r\n\r\nBy applying a combination of satellite imagery, parcel data<\/a>, GIS, and AI, companies and regulators can automatically detect forest disturbances that may indicate illegal logging. Recently, this approach was used to catch a cacao firm<\/a> engaging in deforestation in the Amazon.\r\n

Preparing for a Future of Supply Chain Transparency<\/strong><\/h3>\r\nAs companies stand up the technology and personnel needed to comply with regulations like EUDR, they\u2019ll also need to anticipate another EU policy on the horizon: the Digital Product Passport (DPP)<\/a>.\r\n\r\nThe DPP might be viewed as the logical extension of recent supply chain regulations. It will require products sold in the EU to come with virtual labels containing details on an item\u2019s origin, materials, and manufacturing processes. While the legislation was formally adopted this year, specific information on how it will be enforced is expected in 2025.\r\n\r\nCompanies can prepare for the reality of both a digital passport and the EUDR mandate by centralizing information in a system of record like GIS. With reliable supply chain data managed and monitored in GIS, companies can track and report on a product\u2019s life cycle from raw material to store shelves.\r\n\r\nNew regulations\u2014along with a corporate desire to understand frequent supply chain disruptions<\/a>\u2014are ushering in a new age of visibility and traceability for global trade networks. Location technology will help executives adapt to a new reality in which supply chain obscurity is out of fashion\u2014and out of compliance."}],"references":null},"yoast_head":"\nEUDR to Require Geographic Coordinates for Commodities, Products<\/title>\n<meta name=\"description\" content=\"With EUDR enforcement set to begin in 2025, companies trading products and commodities in the EU need to get oriented.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/new-law-demands-geographic-coordinates-from-the-supply-chain\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New Law Demands Geographic Coordinates from the Supply Chain\" \/>\n<meta property=\"og:description\" content=\"With EUDR enforcement set to begin in 2025, companies trading products and commodities in the EU need to get oriented.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/new-law-demands-geographic-coordinates-from-the-supply-chain\" \/>\n<meta property=\"og:site_name\" content=\"Esri\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/esrigis\/\" \/>\n<meta property=\"article:modified_time\" content=\"2024-10-25T13:20:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.esri.com\/about\/newsroom\/app\/uploads\/2024\/10\/new-law-demands-geographic-coordinates-for-products-wherenext-card-826x465-1.jpg\" \/><meta property=\"og:image\" content=\"https:\/\/www.esri.com\/about\/newsroom\/app\/uploads\/2024\/10\/new-law-demands-geographic-coordinates-for-products-wherenext-card-826x465-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta 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