Golden Agri-Resources and Verborg Group Collaborate to Test SmartTrace EUDR Compliance System

Introduction

In a significant move towards sustainable practices, Golden Agri-Resources (GAR) has partnered with the Verborg Group to test its innovative SmartTrace due diligence platform. This initiative is part of GAR's broader strategy to ensure compliance with the European Union's upcoming EUDR (EU Deforestation Regulation) set to come into effect on December 30, 2025.

The SmartTrace Platform

The SmartTrace platform is built on blockchain technology, allowing for enhanced integration with the EU TRACES system while supporting the due diligence required by operators under the EUDR. By launching limited customer tests, GAR aims to prepare its clients for compliance, ensuring they can navigate the complexities of the new regulations effectively.

Pilot Testing with Verborg Group

One of the first companies to pilot the SmartTrace system is the Verborg Group, which operates a cutting-edge tropical oil refinery in Farmsum, Netherlands. This strategic partnership, formed in early 2024, focuses on supplying traceable and deforestation-free tropical oils across Europe.

The initial test involved the delivery of 9,500 metric tonnes of palm oil products to Verborg Group’s facility, all of which are 100% traceable back to plantations in Indonesia. This shipment marks a critical step in GAR's ongoing efforts to fine-tune systems and processes ahead of the EUDR's implementation.

Importance of Compliance

Goodhart Borgesius, Managing Director at Verborg Group, emphasized the significance of these tests in preparing European buyers for EUDR compliance, stating, "We recognize our responsibility to provide sustainably produced, high-quality, deforestation-free tropical oils to customers. This first shipment underscores our ability to demonstrate these attributes and gives our clients confidence that they contribute to reducing deforestation risks in the tropical oil supply chain."

The EUDR mandates that companies importing specific commodities into the EU must provide detailed due diligence reports confirming that the products are free from deforestation and produced in accordance with local legislation. The SmartTrace platform is designed to offer better visibility and assurance for these due diligence data, fostering trust and transparency in complex supply chains.

Enhancing Supply Chain Transparency

GAR’s web-based SmartTrace platform provides operators with a comprehensive view of their palm oil supply chain, enabling the tracking of each shipment down to the plantation level. This empowers users with an end-to-end perspective of the product’s origin, verified through blockchain technology. The capability to trace 100% of palm oil produced on its plantations underscores GAR's commitment to transparency, with an impressive 99% Traceability to the Plantation (TTP) rate across its total palm oil supply chain in Indonesia.

Meeting Growing Regulatory Needs

Beyond merely identifying where palm products are produced and traded, SmartTrace facilitates critical information and analyses that help buyers comply with incoming regulations. Businesses and traders can generate detailed reports meeting EUDR requirements, managing due diligence and risk mitigation for deforestation and legality.

These reports will integrate with the EU's TRACES platform, ensuring clients have the necessary information to complete their due diligence declarations effectively. Maarten van der Hoeven, GAR's head for Europe and Latin America, articulates the benefits of this digital approach: "By digitalizing the due diligence process, SmartTrace assists our clients in gathering, managing, and sharing the data required to meet EUDR standards. In a complex supply chain, where compliance data for a single shipment can comprise millions of data points, we aim to ensure our clients access accurate, efficient, and reliable data proving their palm oil is deforestation-free."

Future Adaptability

In addition to complying with the EUDR, SmartTrace is also designed for adaptability to other regulatory frameworks and intricate data reporting requirements. As regulatory landscapes evolve, GAR aims to equip its clients with the tools necessary to remain compliant and sustainable.

Conclusion

The collaboration between Golden Agri-Resources and Verborg Group represents a pivotal step towards establishing a more transparent and responsible palm oil supply chain. With the SmartTrace platform, both entities are not just preparing for regulatory compliance but are also setting new standards for sustainability in the industry. As the deadline approaches for the EUDR implementation, initiatives like these will be crucial for fostering a future where environmental responsibility is paramount.