Methodologies and references

Methodologies

Selection of SCF focus municipalities

We used the following methodological approach to determine the 61 focus municipalities for SCF member reporting and collective action (please note the original 25 focus municipalities – most of which are still at the top of the list of native vegetation conversion to soy – remain in the scope):

  • Out of the 5,570 municipalities in Brazil, focus municipalities must have at least 95% of their territory in the Cerrado.
  • The area of planted soy in focus municipalities must be larger than 5,000 hectares (PAM/IBGE 2020).
  • Focus municipalities must be within the region’s top municipalities as measured by
    1. Area of native vegetation converted to soy (Agrosatelite 2019/20 Soy Expansion Report, and PRODES 2018/2019) and
    2. Availability of remaining native vegetation in legal reserves suitable for soybeans.
  • Focus municipalities must have at least 2 SCF members operating (sourcing or have physical presence) within their boundaries.

We will review and update our scope and focus municipalities every 3 years, according to the latest data available.

Monitoring traceable volumes

The following methodological approach is used by members individually to produce the volume key performance indicators reported annually:

  1. Soy volume sourced in the Cerrado: The proportion (in tonnes) of soybean volume sourced by the member company from the Cerrado biome, in municipalities with at least 95% of its territory in the biome, compared with the total volume sourced out of Brazil by the reporting company. This information is reported as % of soy sourced in Cerrado and % of soy sourced in other biomes.
  2. Soy volume sourced in focused municipalities in the Cerrado: From total in step 1, the proportion (in %) of soybean volume produced in the focus municipalities, by considering the municipality of the supplier. This information is reported as % of soy sourced in focus municipalities and % of soy sourced in other Cerrado municipalities.
  3. Direct and indirect sources: From total in step 2, the proportion (in %) of soybean sourced directly from farmers and the proportion sourced from third parties, by considering the type of activity of supplier (using the supplier’s tax registry number as a source). This information is reported as % of direct sources in focus municipalities and % of indirect sources in focus municipalities.
  4. Volume traceable and not traceable: From total volume of direct sources (step 3), the proportion of volume that is traceable to farm, by considering farm location information provided by supplier. Volumes are classified as traceable to farm when there is a polygon of the farm where soy was produced. This information is reported as % direct sources traceable to farm in the focus municipality. Companies will obtain at least 95% of direct soy volumes as traceable to farm starting from December 2020.

    Reporting methodology for soy sourced by joint ventures

    There are six variance factors to consider when reporting on soy sourcing of joint ventures (JV) associated with an SCF member company. They depend on awareness of JV operated volumes; control of JV operations; and purchasing from a JV. For each of these, there is a yes/no answer. The consolidated scenarios are:

    1. When a company knows the JV’s overall volumes
      • If the SCF member controls the JV operations (e., it manages soy purchases from the JV), regardless of if it sources from the JV or not: report volume equivalent to its share on the JV as direct.
      • If the SCF member does not control the JV but sources from it: report volumes effectively sourced to the SCF member as indirect.
      • If the SCF member does not control and does not source from the JV: report volumes equivalent to its share as indirect.
    1. When a company does not know the JV’s overall volumes because it has no control (i.e., it does not manage soy purchases from the JV):
      • If it sources from the JV: report as indirect
      • If it does not source from the JV: report volume as indirect based on the financial revenue from the JV through the mathematical rationale described below:
        • As participant of the JV, company has revenues from JV expressed in $ 000 (A)
        • Company has its own total revenue for the country expressed by $ 000 (B)
        • A/B = X% of JV revenue representativeness over the company revenue. Companies shall consider such X% as a percentage of the company’s total origination volume.
        • Companies shall add X% to the % of sourcing from the area and report as indirect.
    l

    Reporting methodology for deforestation- and conversion-free (DCF) soy

    Measuring and reporting on DCF soy will involve two indicators, each based on different data sources. Soy volumes sourced by joint ventures will integrate DCF calculations according to the established ‘Reporting methodology for soy sourced by joint ventures’ described above.

    1. Reporting via individual company data

    Data sources:

    • Farm area (polygon): data from each company
    • Soy area by polygon: Agrosatelite study (crop year 20/21)
    • Conversion area: PRODES Cerrado 2020

    Indicators:

    • DCF% of each company in the 61 focus municipalities (FMs);

    To calculate SCF member company verified DCF soy footprint, use the following indicator:

    Total volume of verified DCF soy purchased from farms in 61 FMs = % Verified DCF
    Total volume of soy purchased from farms in 61 FMs (direct and indirect)

    This indicator will allow for progress to show overtime, as increasing monitoring will be implemented throughout the whole sourcing chain. Thus, the indicator presents to what extent companies have effectively monitored and verified soy volumes as DCF. Such individual results are auditable.

    2. Reporting via publicly available information (common indicator of 61 municipalities by the SCF, not a company’s individual indicator)

    Data sources:

    • Farm area of each municipality (polygon): SICAR (note: only if not mass balance)
    • Soy area: Agrosatelite study purchased by ABIOVE (crop year 20/21)
    • Conversion: PRODES Cerrado 2020
    • Average municipality productivity (IBGE/CONAB)

    To calculate the percentage of DCF soy at landscape level in the 61 focus municipalities, use the following indicator:

     

    Total volume of DCF soy of 61 FMs = % of DCF soy in the 61 focus municipalities
    Total volume of soy of 61 FMs

    References

    1. ABIOVE and Agrosatélite, 2021. Technical Report: Cerrado soy dynamics with focus on the 61 priority municipalities updated for crop year 2019/20 vs. PRODES 2014-2019. Available on: https://wbcsdpublications.org/scf/wp-content/uploads/2021/06/Soy_Dynamic_2019-20_AGROSATELITE_SCF_V1.pdf
    2. Rudorff, B.; Risso, J., 2021. Cerrado soy dynamics on the SCF 61 focus municipalities updated for crop year 2020/21 VS. PRODES 2014-2020. Agrosatélite Applied Geotechnology Ltd. Florianópolis-SC, Brazil, 2021 17 p. Available on: https://wbcsdpublications.org/scf/wp-content/uploads/2021/12/Soy_Dynamic_2020-21_AGROSATELITE_SCF_November_2021.pdf

     Full list of the 61 SCF focus municipalities

    Aparecida do Rio Negro TO State of Tocantins
    Baixa Grande do Ribeiro PI State of Piauí
    Balsas MA State of Maranhão
    Campos de Júlio MT State of Mato Grosso
    Campos Lindos TO State of Tocantins
    Carolina MA State of Maranhão
    Correntina BA State of Bahia
    Currais PI State of Piauí
    Formosa do Rio Preto BA State of Bahia
    Goiatins TO State of Tocantins
    Jaborandi BA State of Bahia
    Lagoa da Confusão TO State of Tocantins
    Mateiros TO State of Tocantins
    Mirador MA State of Maranhão
    Monte do Carmo TO State of Tocantins
    Peixe TO State of Tocantins
    Pium TO State of Tocantins
    Planalto da Serra MT State of Mato Grosso
    Porto Nacional TO State of Tocantins
    Riachão das Neves BA State of Bahia

    Ribeiro Gonçalves PI State of Piauí
    Sambaíba MA State of Maranhão
    Santa Rosa do Tocantins TO State of Tocantins
    São Desidério BA State of Bahia
    Uruçuí PI State of Piauí
    Abreulândia TO State of Tocantins
    Água Boa MT State of Mato Grosso
    Água Fria de Goiás GO State of Goiás
    Alto Araguaia MT State of Mato Grosso
    Araguacema TO State of Tocantins
    Barra do Ouro TO State of Tocantins
    Barreiras BA State of Bahia
    Buritizeiro MG State of Minas Gerais
    Cabeceiras GO State of Goiás
    Campo Novo do Parecis MT State of Mato Grosso
    Caseara TO State of Tocantins
    Caxias MA State of Maranhão
    Corrente PI State of Piauí
    Cristalina GO State of Goiás
    Dois Irmãos do Tocantins TO State of Tocantins

    Fernando Falcão MA State of Maranhão
    Gilbués PI State of Piauí
    Gurupi TO State of Tocantins
    Itacajá TO State of Tocantins
    Itapiratins TO State of Tocantins
    Luís Eduardo Magalhães BA State of Bahia
    Marianópolis do Tocantins TO State of Tocantins
    Niquelândia GO State of Goiás
    Nova Nazaré MT State of Mato Grosso
    Novo Acordo TO State of Tocantins
    Novo São Joaquim MT State of Mato Grosso
    Paracatu MG State of Minas Gerais
    Pastos Bons MA State of Maranhão
    Pedro Afonso TO State of Tocantins
    Poxoréu MT State of Mato Grosso
    Riachão MA State of Maranhão
    Santa Filomena PI State of Piauí
    Santa Maria do Tocantins TO State of Tocantins
    Sebastião Leal PI State of Piauí
    Sucupira do Norte MA State of Maranhão
    Unaí MG State of Minas Gerais