Golden Agri-Resources Launches SmartTrace Platform to Support EUDR Compliance
In a bid to assist its customers in preparing for the upcoming implementation of the EU Regulation on Deforestation-Free Products (EUDR), Golden Agri-Resources (GAR) has initiated a limited number of customer trials for its SmartTrace Due Diligence platform. The platform, designed to be integrated into the EU TRACES system, aims to facilitate EUDR Due Diligence checks for operators.
One of the initial customers utilizing the SmartTrace system is the Verborg Group, operating a state-of-the-art tropical oil refinery in Farmsum, Netherlands. GAR and Verborg Group forged a strategic partnership in early 2024 for the supply of tropical oils to customers across Europe, ensuring high-quality, traceable, deforestation-free oils.
The trial involved a delivery of 9,500 tons of palm oil products to Verborg Group’s refinery at the end of February. This delivery, traceable 100% back to the plantations in Indonesia where it was grown, is part of ongoing testing of systems and procedures to comply with regulations ahead of the EUDR implementation.
Goedhart Borgesius, Director of Verborg Group, emphasized the significance of the study in convincing European buyers of EUDR preparations: “We recognize our responsibility to offer sustainably produced, high-quality, deforestation-free tropical oils to our customers. This delivery marks a milestone in our ability to demonstrate these attributes and provide customers with the assurance that they are contributing to eliminating deforestation risks in the tropical oil supply chain.”
The EUDR mandates that companies importing selected raw materials into the EU must submit detailed Due Diligence reports confirming products are free from deforestation risks and produced in compliance with local laws. GAR’s SmartTrace platform enhances visibility and security for Due Diligence data, increasing trust and transparency in complex raw material supply chains.
The web-based platform offers operators an unprecedented overview of their entire palm oil supply chain. Leveraging blockchain technology, the system can trace every component of a palm oil shipment down to plantation level, authenticating product sourcing. GAR’s decade-long investment in supply chain traceability allows it to trace 100% of palm trees produced on its plantations back to the plantation, with 99% traceability to the plantation extended throughout its entire palm oil supply chain in Indonesia. Similarly, deliveries of soy, sugar, coconut, and sunflower oils are 100% traceable to the mill.
The system not only indicates where palm oil products were produced and traded but also provides crucial information and analyses to assist buyers in complying with import regulations. Companies and traders utilizing the system will be able to generate detailed reports meeting key EUDR compliance requirements, including due diligence and risk mitigation for deforestation and legality. These reports can be integrated into the EU’s TRACES platform, enabling customers to efficiently conduct necessary Due Diligence checks.
Maarten van der Hoeven, GAR’s Head for Europe and LatAm, highlights the benefits of the system: “By digitizing the Due Diligence process, SmartTrace helps our customers collect, manage, and share the data required to meet EUDR requirements. In a complex supply chain where compliance data for a shipment can contain millions of data points, we aim to ensure our customers have access to accurate, efficient, and reliable data to prove their palm oil is free from deforestation.”
Beyond EUDR compliance, SmartTrace can adapt to other legal frameworks and complex data and reporting requirements.
In conclusion, GAR’s SmartTrace platform is a valuable tool for companies seeking to ensure compliance with EUDR and other regulations governing deforestation-free products. By providing enhanced visibility and security for Due Diligence data, the platform boosts trust and transparency in complex supply chains. As the EUDR deadline approaches, it is crucial for operators to adopt systems like SmartTrace to streamline compliance processes and demonstrate commitment to sustainable sourcing practices.
