Auditing for soy traceability in the Cerrado

Preventing soy-related deforestation and conversion in the Cerrado is vital to promoting biodiversity and protecting the climate. That’s why we fully support the efforts of COFCO International and the Soft Commodities Forum to ensure traceability for soy suppliers in this region. This is very important, as when companies fully understand the social and environmental risks presented by supplier, they can take targeted measures to improve their practices. Traceability is also fast becoming a market requirement.

Improving the sustainability of soy will require the participation of everyone in the supply chain. Companies including COFCO International are on a journey to make this happen. As a certification company, we perform independent verification of the activities of agricultural businesses in different biomes. We’ve conducted audits of COFCO International’s work to trace its soy supplies in the area for 03 years. In particular, we check on the processes used by the company to comply with both its own standards and commitments. In addition, we verify whether the company’s employees have been sufficiently trained to perform each process. In 2022, we audited the company’s work towards its SCF commitments regarding traceability for the first time.

Among the challenges we encounter in this work, unravelling the stories behind lengthy, indirect supply chains can be a complex endeavour, particularly when not everyone in the supply chain shares the same commitment to raising standards or uncovering what’s happening at farm level. To overcome this, we understand that engaging suppliers with the importance of the SCF requirements and traceability in general is vital to making progress. Additionally, we believe a consistent way of auditing, ideally annually, would be very helpful. With the entire agricultural sector agreeing on a harmonised way forward, as recommended by the SCF.

Over the past year, COFCO International has made a significant effort to improve the traceability of its supply chain, adding social and environmental supplier verification, establishing a deforestation-free standard, and achieving all the traceability targets of its sustainability-linked loan. The company has also traced 100% of its direct soy supplies within 61 priority municipalities in the Cerrado, meeting its SCF commitments.

Beyond this, COFCO International is working with both direct and indirect suppliers and seeking for standards that verify the robust nature of its sustainability efforts. Importantly, the team knows that this is all about continuous improvement. The business is on the right path, constantly striving to advance its traceability process, and collaborating with partners to ensure it gains a full understanding of social, human rights and environmental risks, supported by precise satellite imagery and supplier engagement.

We’ll continue to monitor the progress of COFCO International on its pathway to a more sustainable supply chain, including by ensuring we deliver the most appropriate and effective services to help achieve its soy sustainability ambitions.