Land Use Change
Land use change refers to the impact of human activity on land and ecosystems. It is central to many environmental and socio-economic challenges, including biodiversity loss, climate change and the well-being of vulnerable communities that depend on land.
LDC’s activity in sourcing, processing, transporting and distributing agricultural products is tied to millions of hectares of land. We are committed to promoting responsible land use across our global supply chains, with a focus on eliminating deforestation, protecting biodiversity and preserving water resources.
Our work in this area started by establishing specific policies for priority supply chains with high exposure to deforestation and biodiversity loss, including soy, palm and coffee. These policies have guided our work to engage suppliers, drive supply chain traceability and apply geospatial monitoring on our supply base, addressing instances of non-compliance.
Our Commitment
In early 2022, we took an important further step with our commitment to eliminate deforestation and conversion of native vegetation of high conservation value for agricultural purposes from our global supply chains, by the end of 2025.
This commitment crystallized our aspiration and is reflected in our accelerated plans to expand deforestation- and conversion-free due diligence efforts across our global supply chains, striving for continuous improvement toward our target.
Among other concrete actions supporting our commitment, we have defined:
- November 30, 2016, as the cut-off date for palm.
- December 31, 2020, as the cut-off date for soy and other commodities.
What We Do
Our actions toward our commitment focus on five key areas to promote deforestation- and conversion-free sourcing in our supply chains, as follows:
Global Risk Assessment
In line with our DCF methodology, we conduct deforestation and land conversion risk assessments in our global supply chains to identify priority regions requiring further supply chain traceability, due diligence and monitoring.
Regular risk assessments allow us to capture changes in land use patterns and adjust our due diligence accordingly.
Supply Chain Transparency & Monitoring
We have invested in and deployed satellite monitoring systems to build greater traceability and transparency in priority regions, and we are working to extend this coverage.
As an example, our third-party monitoring systems allow us to identify near real-time deforestation and peat developments in global palm supply chains, which our teams review and address in a timely manner, following our Palm Grievance Protocol.
Traceability and Supplier Engagement
Our supplier engagement programs include training and capacity building to increase knowledge and adoption of supply chain traceability and deforestation due diligence practices.
We also engage with farmers, whose production methods are key to conserving natural resources and habitats, empowering them to increase their yields through sustainable agriculture practices, which may involve our regenerative agriculture programs.
While LDC originates agricultural products directly from farmers, we also procure from indirect suppliers (such as cooperatives, aggregators and other third-party suppliers), which can present bigger challenges for traceability and deforestation due diligence, due to the presence of intermediaries and lack of sectoral alignment on DCF commitments and methodologies for internationally traded volumes for certain crops. Achieving DCF targets for these parts of our supply chains therefore requires increased awareness, supplier engagement and acceleration of sectoral initiatives.
Exploring Incentive Mechanisms for Conservation
Preserving forests on and around farms is vital for maintaining long-term productivity and climate resilience, a view shared by many farmers we work with and a process that requires collaboration across the entire agricultural value chain.
In Brazil’s Cerrado biome, we are experimenting with conservation incentive models for soy and corn farmers who go beyond legal requirements, while supporting them in adopting sustainable land-use practices. This requires collaboration across the whole value chain and beyond, to establish economically viable alternatives for producers.
As members of the Soft Commodities Forum, we also support the Farmer First Clusters Initiative that addresses soy-driven deforestation and conversion in Brazil’s Cerrado landscapes.
Reporting on Our Progress
Transparent reporting is key to achieving our commitment, and details about our methodology and progress are available below:
Spotlight on In-House Monitoring Expertise
Our Data Science team is advancing LDC’s deforestation monitoring efforts, using tools like Google Earth Engine and sector collaborations (e.g., Forest Data Partnership). This expertise guides internal practices and improves decision-making related to land use monitoring.
