Deforestation risk

Deforestation risk is a concept used by supply chain transparency initiatives such as Trase to express the amount of deforestation or clearance of native vegetation after a certain cut-off date that can be linked to a particular batch of soy or another commodity. The deforestation risk is calculated as the number of hectares that is cleared of native vegetation in a particular region per tonne of yield, and is assigned to a trader or country on the basis of the amount of product it sources from that specific region. If a buyer sources 500 t soy from a region that produces 1000 t and where 800 ha of deforestation can be linked to soy production, the buyer faces a deforestation risk of 400 hectares (50% of the total) in this region.