The World Cocoa Foundation (WCF), has worked with leading industry companies and the Alliance of Biodiversity International and CIAT centre for tropical agriculture, for a new Active Deforestation Risk Assessment (DRA) Methodology for supply chains in the sector, reports Neill Barston.

As the key organisation noted, it has worked with businesses including Barry Callebaut; Cargill; Compañía Nacional de Chocolates; ECOM Agrotrade; Lindt & Sprüngli; Luker; Mondelēz; Olam Food Ingredients (ofi); Sucden; The Hershey Company, to create the new standards.

Moreover, as it acknowledges, its renewed approach has been driven by the requirement for greater compliance with the much-delayed EUDR deforestation laws finally coming into force at the end of this year, along with planned corporate sustainability due diligence CSDDD and sustainability reporting requirements (CSRD) also making their way through the European Parliament, which is anticipated to have a transformative impact on how companies approach their trading around the world under new, legally binding frameworks of operating.

These combined legislations come at a particularly crucial moment for the cocoa trade, which is facing significant strain from price volatility, continued instances of crop disease including swollen shoot virus significantly affecting crops in Ivory Coast and Ghana which supply two thirds of the chocolate sector.

In addition, farmers have been hit with notable farm gate price reductions within the past year in West Africa that have signalled a period of extended major challenges for the industry, which is also facing climate change tests with an anticipated El Nino weather cycle that could negatively affect crops later this year.

Against this complex backdrop, the WCF noted that its collaborative approach also extended to working with additional technical experts, compliance providers and public authorities, the methodology provides practical guidance to support more transparent, consistent and evidence-based approaches to deforestation risk assessment.

Lack of global regulation
Notably, there remains no globally applied standard for deforestation risks – with many market observers stating that without a truly international approach, there may well be imbalances around the world as to how such ambitious frameworks put forward in Europe are matched elsewhere.

For its part, the WCF has said that a “globally uniform approach to deforestation risk assessment is desirable,” and noted that its methodology allows for differing contexts and can act as a foundation for regions around the world to adopt.

The methodology provides step-by-step guidance covering: Plot data quality assurance, Forest baseline definition and validation, Deforestation overlay analysis, Legal zoning checks, Verification procedures, as well as Mitigation and corrective actions

Furthermore, the WCF noted that the methodology can also support more consistent approaches to land-use change GHG emissions monitoring and accounting through improved forest baseline definition, mapping and data quality procedures.

In addition, the organisation noted that governments, markets and supply chains place increasing emphasis on traceability, forest protection and due diligence, cocoa sector stakeholders face growing pressure to improve the quality, transparency and comparability of risk assessment approaches.

The Active DRA Methodology has been developed to help address these challenges through a structured process that combines science-based analysis, data quality assurance, local context, verification procedures and documented judgment.

Developed under WCF’s Regulatory Assurance and Standards Workstream, the methodology is intended as a practical reference framework for companies, governments and third-party monitoring providers. It is designed to complement existing national systems and company due diligence processes by improving transparency, comparability and confidence in assessment outcomes.

Significantly, the WCF noted that the methodology recognises that environmental rigour and fair treatment of producers are closely linked – and verification strengthening through such means may positively impact EUDR assessments where there is conflicting or low quality evidence.  

Mike Matarasso, Impact Director and Head of North America, World Cocoa Foundation, commented: “The cocoa sector needs robust, transparent and practical approaches to assessing deforestation risk”

“This methodology represents an important step forward in supporting greater consistency, stronger verification and better-informed decision-making across cocoa supply chains.”

In addition Louis Reymondin, Senior Scientist – Digital Inclusion, Alliance of Bioversity International and CIAT), welcomed the initiative as a positive force for delivering transparency.

“No single dataset can fully capture the complexity of tropical agricultural landscapes. This methodology provides a structured framework for assessing evidence, strengthening verification processes and improving transparency in how risk assessments are conducted.”