Problem Statement

In the global trade ecosystem, verifying the origin of goods is crucial for compliance with trade regulations, ensuring product quality, and maintaining consumer trust. Traditional methods of tracing goods often rely on paperwork that can be susceptible to fraud, loss, or errors. This lack of transparency and accountability in the supply chain can lead to significant issues, including the circulation of counterfeit products, violations of trade sanctions, and loss of revenue for genuine manufacturers and suppliers. Companies that have committed to eliminating deforestation in their supply chains are struggling to demonstrate measurable reduction in deforestation due to lack of appropriate and cost-effective forest monitoring systems and reliable imagery.

How EO Helps

EO technologies can significantly enhance the traceability and verification of the origin of goods by providing unbiased, timely, and accurate data directly from the source of production. This data is crucial for validating sustainability claims from organizations, ensuring transparency and accountability. EO can help in the following ways:

• Tracking Land Use for Resource Verification: Satellite imagery provides clear and verifiable evidence of land use at the point of origin, ensuring commodities such as timber, soy, or palm oil are sourced sustainably. Optical imagery from Sentinel-2 and Landsat allows for mapping of land cover changes, such as deforestation, plantation establishment, or crop harvesting. For example, EO data can confirm whether timber is sourced from legally managed forests or if crops are grown in deforestation-free zones. SAR imagery from Sentinel-1 complements optical data by enabling consistent monitoring, even in cloudy or dark conditions, ensuring continuous traceability.

• Enhancing Supply Chain Transparency: By integrating EO data with geospatial supply chain platforms, organizations can create transparent traceability systems. For example, combining GPS data from transport vehicles with EO imagery allows stakeholders to track the movement of commodities from source to market, ensuring the integrity of supply chains. Platforms such as Global Forest Watch or Google Earth Engine allow stakeholders to monitor regions, providing accessible, actionable insights into supply chain origins. These technologies empower businesses, regulators, and consumers to verify claims about the origin and sustainability of products.

Case Study: Nestle Palm Oil Transparency Dashboard

Since 2017, Starling has been helping Nestlé better understand the complex deforestation patterns in palm oil producing areas, including where deforestation occurs, what its key drivers are, and who is involved. Nestlé leverages the Starling satellite monitoring system to engage suppliers and address deforestation risks within its supply chain. Upon receiving alerts, they engage directly with suppliers linked to the mills around the detected alert to verify supply chain connections, assess measures taken to mitigate deforestation risks, and foster collaboration. This engagement, supported by precise data, enables suppliers to verify their no-deforestation commitments and helps Nestlé allocate resources effectively. When necessary, they collaborate with Earthworm Foundation and their suppliers for on-the-ground verification to inform decision-making, including potential suspensions.

Additionally, Starling aids in identifying priority locations for forest conservation, engaging smallholders and plantation companies, and collaborating with local governments for integrated land use planning. Using Starling data, Nestlé piloted a forest footprint analysis in Aceh, Indonesia, to assess future deforestation risks and land rights conflicts, with plans to scale up this work for preventive action. Nestlé's approach underscores the importance of technology and partnerships in promoting sustainable sourcing and reducing deforestation within its supply chain.