DATA FLOWS → TRACEABILITY
Supply Chain Traceability
From farm to shelf – proving where products come from
and how they were produced.
In 30 Seconds
Traceability is the ability to track products through every stage of the supply chain – from raw material origin through processing, manufacturing, and distribution to the final consumer.
Origin
Where was it grown or extracted? GPS coordinates, farm IDs, plot registration.
Journey
How did it move through the chain? Processing, aggregation, transformation records.
Integrity
Can claims be verified? Chain of custody, audit trails, certification linkage.
Why it matters now: The EU Deforestation Regulation (EUDR) makes traceability mandatory for seven commodities. From December 2026, companies must prove products are deforestation-free with plot-level geolocation – transforming traceability from nice-to-have to non-negotiable.
Where This Fits
Traceability operates at Layer 3 (Ecosystem Services) in our Data Flows vertical – where value chains transform raw materials into products:
Data Flows context: Traceability connects MRV (ground-level measurement) to disclosure requirements at L4-L5. It's the chain of custody that links a specific plot of land to a product on a shelf.
Chain of Custody Models
How certified or verified materials are tracked through supply chains. Different models offer different levels of traceability and assurance.
Identity Preserved
Highest traceability, highest cost
Products from a single, identified source are kept completely separate throughout the supply chain. No mixing with other materials at any stage.
- • Batch-specific origin tracking
- • No blending permitted
- • Premium pricing justified
- • Full physical separation required
Use cases
- • Single-origin coffee/chocolate
- • Specialty forest products
- • High-value traceable commodities
- • Battery passport minerals
Physical Segregation
High traceability, moderate cost
Certified materials are kept physically separate from non-certified materials, but may be blended with other certified materials from different sources.
- • Certified-only batches
- • Physical separation maintained
- • Multiple certified sources may mix
- • Direct physical link to certified origin
Use cases
- • FSC-certified timber
- • RSPO Segregated palm oil
- • Fairtrade commodities
- • Organic certification
Mass Balance
Volume accounting, lower cost
Certified and non-certified materials may be physically mixed, but the volume of certified material is tracked through bookkeeping. Output claims match input volumes.
- • Bookkeeping-based tracking
- • Physical mixing allowed
- • Volume in = volume out (certified)
- • Lower infrastructure requirements
Use cases
- • RSPO Mass Balance palm oil
- • Sustainable biofuels (ISCC)
- • Recycled content claims
- • Renewable energy certificates
Book & Claim / Credits
No physical link, market support
Certified production creates tradeable credits. Buyers purchase credits separately from physical products. No physical connection between certified production and buyer's supply chain.
- • Credit trading system
- • No physical link required
- • Supports market transition
- • Lowest cost, lowest traceability
Use cases
- • RSPO Book & Claim credits
- • Renewable Energy Certificates
- • Carbon offsets
- • Transition market support
EUDR implication: The regulation requires plot-level geolocation and deforestation-free verification. This effectively mandates identity preserved or segregation approaches – mass balance alone won't satisfy EUDR requirements.
Traceability by Supply Chain Stage
Farm / Origin Level
Where traceability begins. Capturing who produced what, where, and when.
Data Elements
- • Geolocation: GPS coordinates, plot polygons
- • Producer ID: Farm/farmer registration
- • Production data: Harvest dates, volumes
- • Land use history: Deforestation status
- • Certification: Valid certificates, audit dates
Collection Methods
- • Mobile apps with GPS capture
- • Farm mapping / polygon delineation
- • Digital farmer registration systems
- • Third-party verification visits
- • Satellite monitoring integration
First Mile / Aggregation
Where smallholder production is collected and consolidated. Often the most challenging link.
Data Elements
- • Collection records: Who delivered what, when
- • Volume tracking: Weights, grades, lots
- • Producer linkage: Maintaining origin connection
- • Quality data: Moisture, contamination checks
- • Payment records: Price, premiums paid
Challenges
- • Informal collection networks
- • Cash transactions, no records
- • Multiple intermediaries
- • Mixing at collection points
- • Limited digital infrastructure
Processing / Transformation
Where raw materials become processed commodities. Transformation ratios complicate tracking.
Data Elements
- • Input records: Raw material receipts
- • Conversion factors: Input:output ratios
- • Batch tracking: Lot numbers, dates
- • Segregation records: Certified vs conventional
- • Output documentation: Processed product records
Key Standards
- • FSC Chain of Custody
- • RSPO Supply Chain Certification
- • ISCC EU (biofuels)
- • Rainforest Alliance CoC
- • Fairtrade Trader Standard
Distribution & Retail
Where products reach consumers. Focus shifts to consumer-facing transparency.
Data Elements
- • Logistics: Shipment tracking, customs
- • Documentation: Bills of lading, certificates
- • Inventory: Stock movements, locations
- • Consumer info: QR codes, product passports
- • Compliance: Due diligence declarations
Consumer Transparency
- • QR code origin lookup
- • Digital product passports
- • On-pack certification logos
- • Brand sustainability reports
- • Third-party verification marks
EUDR & Regulatory Context
The EU Deforestation Regulation is the most significant traceability mandate in history. It's reshaping global supply chains for seven commodities.
EU Deforestation Regulation (EUDR)
What it requires
- • Geolocation: Plot-level coordinates for all sourcing
- • Cutoff date: No deforestation after 31 Dec 2020
- • Legal compliance: Production meets local laws
- • Due diligence: Risk assessment and mitigation
- • Declaration: Submission via EU TRACES system
Seven commodities covered
- • Cattle (beef, leather)
- • Cocoa (chocolate, cocoa products)
- • Coffee
- • Palm oil (and derivatives)
- • Rubber
- • Soya
- • Wood (timber, paper, furniture)
| Deadline | Who | Requirements |
|---|---|---|
| 30 Dec 2026 | Large operators & traders | Full compliance, due diligence declarations |
| 30 Jun 2027 | SMEs, micro/small operators | Compliance with simplified procedures |
Non-compliance penalties: Up to 4% of EU annual turnover, product confiscation, market withdrawal, exclusion from public procurement.
Related Regulatory Drivers
CSDDD (EU)
Corporate Sustainability Due Diligence Directive requires human rights and environmental due diligence across value chains – broader scope than EUDR.
Phased implementation 2027-2029
Battery Regulation (EU)
Requires digital battery passports with full supply chain traceability for cobalt, lithium, nickel – including carbon footprint.
Phased implementation 2024-2031
US FOREST Act
Proposed legislation mirroring EUDR for US market. Would require deforestation-free imports of key commodities.
Under consideration
UK Environment Act
Schedule 17 requires due diligence on "forest risk commodities" for large UK businesses. Similar to EUDR in intent.
Secondary legislation pending
Technology Infrastructure
The tools and platforms enabling supply chain traceability at scale.
Traceability Platforms
- Sourcemap – Complex supply chain mapping
- Trase – Commodity flow transparency
- Koltiva – Farm-to-market traceability
- Enveritas – Coffee verification
- Farmer Connect – QR consumer lookup
End-to-end visibility
EUDR Compliance Tools
- Coolset – End-to-end EUDR management
- Satelligence – Deforestation monitoring
- Rainforest Alliance – AI verification
- Iceberg Data Lab – TRACES integration
- Earthworm (Starling) – Satellite + supply chain
Regulation-ready
Geolocation & Mapping
- Global Forest Watch – Open deforestation data
- Planet Labs – Daily satellite imagery
- Regrow – Agricultural MRV
- Agri-mapping apps – Farm polygon capture
- JRC TMF – EU tropical forest monitoring
Plot-level evidence
Blockchain & Trust
- BanQu – Immutable supply chain records
- IBM Food Trust – Food traceability
- Provenance – Product history verification
- LogChain – Logistics blockchain
- Everledger – High-value item tracking
Tamper-proof records
Digital Product Passports
- EU DPP framework – Regulatory standard
- Catena-X – Automotive data space
- Battery passports – EV supply chain
- Textile passports – Fashion industry
- QR-linked data – Consumer access
Product-level data
Certification Systems
- FSC – Forest products CoC
- RSPO – Sustainable palm oil
- Rainforest Alliance – Multi-commodity
- Fairtrade – Fair trade + traceability
- ISCC – Biofuels, circular economy
Third-party assurance
Commodities in Focus
Different commodities face different traceability challenges. Here's the landscape by sector:
Cocoa
~6 million smallholders, fragmented supply chains, child labour concerns.
- • 83% traceability to farm level (2024)
- • West Africa concentration (Ivory Coast, Ghana)
- • First-mile aggregation challenges
- • UTZ, Rainforest Alliance certification
Palm Oil
Major deforestation driver, complex derivatives, ubiquitous in products.
- • RSPO covers ~19% of global production
- • Indonesia & Malaysia dominate
- • Palm kernel oil derivatives challenge
- • Segregation vs mass balance debates
Soya
Embedded in animal feed, indirect deforestation link, Brazil Cerrado risk.
- • Indirect exposure via livestock feed
- • Large-scale farms easier to trace
- • Cerrado biome conversion hotspot
- • RTRS, ProTerra certification
Cattle / Beef
Largest deforestation driver, complex animal movements, indirect land use.
- • Animals move between farms
- • Direct + indirect supplier challenge
- • Brazil Amazon focus
- • Emerging blockchain solutions
Coffee
25 million smallholders, quality differentiation drives traceability.
- • Specialty coffee = high traceability
- • Commodity coffee = aggregated
- • Climate change shifting production zones
- • 4C, Rainforest Alliance certification
Timber / Wood
Most mature traceability systems, FSC/PEFC established, illegal logging risk.
- • FSC covers ~200M ha certified
- • Mature CoC systems
- • Paper/pulp transformation tracking
- • Illegal logging "timber laundering"
Challenges & Limitations
Smallholder Inclusion
Most EUDR commodities are produced by smallholders with limited digital access, no formal land tenure, and reliance on informal collection networks.
- • Cost burden falls on weakest actors
- • Risk of market exclusion
- • Digital literacy gaps
- • Language and connectivity barriers
Data Quality & Fraud
Traceability systems are only as good as the data entered. Incentives for falsification are high; verification is expensive.
- • Fake GPS coordinates
- • "Certified" product laundering
- • Document fraud
- • Satellite detection limitations
Cost & Complexity
Full traceability is expensive. Many supply chains have hundreds of suppliers across multiple tiers and jurisdictions.
- • Technology investment required
- • Ongoing monitoring costs
- • Multiple system integration
- • Who pays? Premium distribution
Indirect Supply Chains
EUDR covers direct suppliers but indirect links (e.g., soy in animal feed, palm derivatives) are harder to trace and may shift deforestation rather than reduce it.
- • Embedded commodities in products
- • Tier 2+ supplier visibility
- • Deforestation displacement risk
- • Scope creep as regulations expand
The Pandion View
Traceability is moving from voluntary differentiator to regulatory requirement. The organisations that build traceability infrastructure now will have competitive advantage when compliance becomes mandatory.
Key Principles
- • Start with risk: Map high-risk commodities and origins first
- • Build incrementally: Full traceability takes years – start somewhere
- • Invest in first mile: That's where most traceability breaks down
- • Technology is enabler, not solution: Systems need people and processes
- • Verification matters: Unverified data creates false confidence
Where Traceability Connects
- • MRV: Satellite monitoring validates origin claims
- • Disclosure: Traceability data feeds CSRD, TNFD reporting
- • Carbon markets: Credit integrity depends on traceable outcomes
- • Consumer trust: Transparency drives brand value
- • Risk management: Supply chain visibility reduces surprises
The EUDR deadline is a forcing function. Companies that treat it as a compliance checkbox will struggle. Those that see it as an opportunity to build genuine supply chain intelligence will emerge stronger.
Where To Go Next
MRV Systems
The measurement infrastructure that validates traceability claims
AI in Data Flows
How AI is transforming traceability and verification
Provisioning Services
The ecosystem outputs that supply chains depend on
Supply Chain (L5)
Corporate action perspective on sustainable sourcing
Biodiversity Credits
Where traceability meets nature-positive finance