L3: ECOSYSTEM SERVICES → PROVISIONING
Provisioning Services
What we extract from nature – food, water, timber, fibres, genetic resources.
The tangible products that underpin global supply chains.
In 30 Seconds
Provisioning services are the tangible products we extract from ecosystems. Unlike regulating services (which markets are only now learning to price), provisioning services have been traded for millennia:
| Category | Examples | Key Sustainability Issues |
|---|---|---|
| Food | Crops, livestock, fish, wild food | Land conversion, overfishing, soil degradation |
| Freshwater | Drinking water, irrigation, industrial use | Aquifer depletion, pollution, allocation conflicts |
| Raw materials | Timber, fibres, biofuels | Deforestation, illegal logging, land rights |
| Genetic resources | Seeds, plant compounds, animal breeding | Biopiracy, access and benefit sharing |
| Medicinal resources | Pharmaceuticals, traditional medicine | Overexploitation, indigenous rights |
Why it matters now: EUDR (EU Deforestation Regulation) makes companies legally liable for deforestation in their supply chains. Due diligence is no longer optional – it's mandatory.
Where This Fits
Provisioning Services sit within Layer 3: Ecosystem Services – the translation layer where natural capital becomes economic value:
Provisioning = extraction. These are the ecosystem services most directly tied to commodity markets and supply chains. The sustainability challenge is ensuring extraction doesn't degrade the underlying natural capital.
The Regulatory Shift: EUDR
EU Deforestation Regulation – the game-changer
The EU Deforestation Regulation (EUDR) requires companies placing certain commodities on the EU market to prove they are “deforestation-free” – not produced on land deforested after December 2020.
Covered Commodities
Cattle
Beef, leather
Cocoa
Chocolate, cocoa butter
Coffee
Beans, instant coffee
Palm oil
Food, cosmetics, biofuel
Rubber
Tyres, industrial
Soy
Feed, oil, food
Wood
Timber, paper, furniture
Derived products
Including charcoal, printed paper
Due Diligence Requirements
1. Information collection
Geolocation of production plots, quantity, supplier details, risk assessment
2. Risk assessment
Evaluate likelihood of non-compliance based on country risk, supplier history, satellite data
3. Risk mitigation
Where risk identified, take action: audits, supplier development, alternative sourcing
4. Due diligence statement
Submit statement to EU system before placing product on market
Timeline
Large companies: Compliance required from December 2025
SMEs: Compliance required from June 2026
Note: Implementation delays have been proposed – check current status
Certification Landscape
Voluntary certification has been the primary mechanism for sustainable provisioning. EUDR doesn't replace certification – but it does change what's sufficient.
| Commodity | Key Certifications | Focus |
|---|---|---|
| Wood/Paper | FSC, PEFC | Sustainable forestry, chain of custody |
| Palm oil | RSPO | No deforestation, social criteria |
| Soy | RTRS, ProTerra | Conversion-free, responsible production |
| Coffee/Cocoa | Rainforest Alliance, Fairtrade | Environment + social + economic |
| Fisheries | MSC, ASC | Sustainable catch, aquaculture standards |
| Multi-commodity | ISCC | Sustainability, GHG savings, traceability |
EUDR vs Certification
Certification alone is not sufficient for EUDR compliance. EUDR requires:
- • Geolocation: Polygon or GPS coordinates of production plots
- • Cut-off date: Proof of no deforestation after 31 Dec 2020
- • Your own due diligence: Can't simply rely on third-party certification
Certification can support due diligence, but operators must conduct their own assessment.
The Circular Economy Connection
Provisioning services are where circular economy principles meet natural capital. The goal: maximise value from what we extract while minimising extraction itself.
Linear Model (Current)
Extract → Manufacture → Use → Dispose
- • Maximise throughput
- • Externalise environmental costs
- • Resource depletion inevitable
- • Waste as default outcome
Circular Model (Target)
Extract → Manufacture → Use → Recover → Regenerate
- • Design for longevity and recovery
- • Internalise environmental costs
- • Resource cycling extends availability
- • Waste as design failure
Circularity Strategies for Provisioning
Reduce
Decrease material intensity per unit of value. Lightweighting, dematerialisation, product-as-service.
Replace
Substitute virgin materials with recycled/regenerative alternatives. Bio-based materials, recycled content.
Regenerate
Source from systems that restore natural capital. Regenerative agriculture, agroforestry, sustainable forestry.
Recover
Capture value from end-of-life products. Recycling, composting, cascading use of materials.
Measuring Provisioning Impacts
What gets measured gets managed. Key metrics for provisioning service sustainability:
Land footprint
Hectares of land used per unit of product. Lower is better.
Frameworks: TNFD, GRI, CDP
Water footprint
Blue, green, and grey water consumption. Context matters (water-stressed regions).
Frameworks: CDP Water, AWS
Deforestation risk
Hectares of forest conversion linked to supply chain. Zero is the target.
Frameworks: EUDR, CDP Forests
Recycled/renewable content
Percentage of inputs from recycled or renewable sources.
Frameworks: CSRD, Ellen MacArthur
Certification coverage
Percentage of sourcing covered by credible certification schemes.
Frameworks: Company-specific, sector benchmarks
Traceability depth
How far back in the supply chain you can trace. Plot-level is gold standard.
Frameworks: EUDR, TNFD
Who Operates Here
Producers / Farmers
Supply side of provisioning services
Key questions:
- • How do I prove deforestation-free status?
- • Which certifications add value?
- • What premiums can I command?
Watch out for: Compliance costs, certification fatigue, price volatility.
Commodity Traders / Processors
Aggregation and transformation
Key questions:
- • How do I maintain chain of custody at scale?
- • What due diligence systems do I need?
- • How do I manage supplier transitions?
Watch out for: Traceability complexity, data quality, reputational risk.
Brands / Retailers
Demand side and consumer interface
Key questions:
- • How do I ensure supplier compliance?
- • What claims can I make?
- • How do I communicate to consumers?
Watch out for: Greenwashing risk, supply security, cost pass-through.
Certification Bodies / Auditors
Assurance and verification
Key questions:
- • How do standards evolve for EUDR?
- • What's the role of technology in verification?
- • How do we maintain credibility?
Watch out for: Audit fatigue, capacity constraints, interoperability.
The Pandion View
Provisioning services are the most tangible connection between business and nature. Every supply chain extracts – the question is whether extraction regenerates or depletes.
The shift from “sustainable sourcing as nice-to-have” to “due diligence as legal requirement” changes everything. Companies that built robust traceability systems early now have a competitive advantage. Those catching up face compliance costs and supply chain redesign.
We help clients understand their provisioning dependencies, design due diligence systems that work, and build supply chains that are both compliant and genuinely sustainable.