| A | B | C | |
|---|---|---|---|
1 | |||
2 | No. | Question | Answer |
3 | 1 | What tools do you use to collect geolocation data | GPS coordinates: Google Maps, Fields Area measure, Google My Map Polygons: Fields Area measure, Google Earth, Google My Map Data aggregation: Fields Area measure, Google Earth, Excel Worksheet, Google My Map, Geojson webpage |
4 | 2 | How do you ensure that the EUDR Products you supply to EU importers are deforestation-free and not in a protected area? | Compliance with the European Union Deforestation Regulation (EUDR) is ensured through a structured verification strategy that includes both desk-based assessments via multi-sourced data layers and backed up with a standardized field verification mechanism. The approach prioritizes but is not limited to bulk data analysis for a systematic review of various sources. Detailed analysis up to plot level can be leveraged if necessary. |
5 | 3 | What are your plans to determine that they are deforestation free and what tools/processes will you use to demonstrate that? | Non-forested sourcing areas are verified by desk-based assessments, i.e. overlaying the plot coordinates with the local government’s forest map layers to identify plots within or near forested areas. These plots will be excluded from the EUDR compliance program. Should the buyers request verification through internationally recognized platforms, we are willing to cooperate and crosscheck multi-sourced data layers to narrow down to only safe sourcing regions. |
6 | 4 | What percentage of your supply chain currently meets the EUDR requirement of: polygon mapped for plots >= 4 Ha and gps point with estimated area for plots <4Ha. | 50,000 EUDR-compliant coffee plots across Dak Lak, Gia Lai, and Dak Nong are anticipated to be fully updated and available by 2025. |
7 | 5 | Do you have procedures in place and adapted resources to manage and protect traceability information? | An Aggregator Registry that includes all our Aggregators (Buying Agents, Local Traders, Cooperatives, etc.) who deliver directly to Simexco. For each Aggregator, register the number of mapped and approved EUDR farmers, along with the maximum volume that the Aggregator can realistically deliver to Simexco from their full EUDR farmer base. |
8 | 6 | At what stage do you keep EUDR purchased volumes segregated? | Collection Centres' stock and Cooperatives' warehouse stock Simexco's Warehouse including incoming stock, processing area and outcoming stock |
9 | 7 | Can you provide precise geolocation data (latitude and longitude) for the farms where the coffee was cultivated? | Farmer List, generated at the delivery from collection centers to the company's warehouse, includes farm origin coordinates of product compliant with the EUDR (as per the Purchase Order). This list remains consistent throughout all intermediary stages, from the warehouse to the dry mill, and through to export at the port to ensure traceability, allowing EU downstream buyers to track the product back to the original farmers and upstream actors. |
10 | 8 | What systems are in place to trace the coffee's journey from farm to export? | Database System of Sourcing Areas in Full Traceability (in compliance with EUDR), an in-house digital platform that facilitates seamless communication across all departments at Simexco, ensuring efficient and accurate order processing at every step. By integrating advanced technology, the platform enhances workflow efficiency and precision. Buyers can easily query their specific orders, track their status—from order receipt to successful delivery and payment—and trace all relevant details, including those related to EUDR compliance, simply by entering the Purchase Order number. This ensures full traceability and adherence to EUDR regulations. |
11 | 9 | What measures have you implemented to ensure the coffee do not come from land cleared after December 31, 2020? | Simexco confirms data accuracy by identifying areas with deforestation or degradation post-December 31, 2020, using multiple verification platforms and cross-checking with stakeholders. Compliance with the European Union Deforestation Regulation (EUDR) is ensured through a structured verification strategy that includes both desk-based assessments via multi-sourced data layers and backed up with a field verification mechanism. The approach prioritizes but is not limited to bulk data analysis for a systematic review of various sources. Detailed analysis up to plot level can be leveraged if necessary. |
12 | 10 | What actions are taken if any part of the supply chain is found to be non-compliant or at high risk with the EUDR? | Once identified (upon either in-house assessment or cross-checked by buyers or the EU) as operating on land deforested post 31/12/2020, farm’s EUDR compliance program supplier membership is systematically phased out, demonstrating a firm commitment to responsible sourcing. In cases where high risks of deforestation/forest degradation are identified (i.e. farms neighboring or in proximity of deforested lands), those specific farms’ membership in our EUDR compliance program will first be eliminated. Then we will work closely with the farmers, under directives of state authorities to address and mitigate these issues. This may involve restoration efforts, transitioning the farm to compliance with sustainable land-use practices, or implementing corrective measures to reduce further environmental impact. |
13 | 11 | What is your protocol to comply with national regulation? | Our sustained commitment to excellence in compliance and continuous improvement in the course of our business has been recognised through numerous accolades and achievements awarded over consecutive years, which affirm our dedication to adhering to both national and international standards and highlight our role as a key ambassador of Vietnam’s coffee on the global market. And we continuously strive to set benchmarks for the industry in terms of legal compliance, environmental responsibility, and sustainable business practices. |
14 | 12 | How does Simexco's compliance with national legislations adhere to EUDR? | Coffee production within Simexco's supply chain complies with all relevant local laws, including those related to land use rights, environmental protection, forest-related rules, third-party rights, labor rights, citizens' rights, Free, Prior, and Informed Consent (FPIC), as well as tax, anti-corruption, customs, and trade regulations. Documentation verifying this compliance is available. |
15 | 13 | What due diligence procedures have you established to identify and mitigate risks related to deforestation and legal non-compliance? | Data integrity and transparency are ensured by enabling stakeholders to easily verify and confirm geolocation data, supported by a streamlined chain of custody, collectively referred to as the full Traceability Process. Compliance with national laws, environmental regulations, and relevant sustainability certifications (such as EUDR or third-party certifications) is maintained. Continuous updates are implemented to stay aligned with the latest domestic and international regulations, ensuring effective protection of the rights of indigenous farming households within Simexco Daklak’s supply chain. Social responsibilities are upheld by supporting local households in establishing sustainable livelihoods, addressing deforestation risks, and providing verifiable documentation. Risk management is enhanced through the integration of multi-sourced, multi-layered information, which is recorded, tracked, and verified accurately. This ensures that no single data source can fully prove compliance, thereby reinforcing the system’s robustness. |
16 | 14 | How do you monitor and assess risks within your supply chain? | We establish a robust monitoring and oversight system with direct engagement of the supervising assignees to ensure continued compliance with EUDR standards. This includes regular monitoring of compliance levels, risk assessment up-to-date reports, and periodic field visits to track and evaluate the effectiveness of the risk mitigation measures implemented along with independent checks to validate the accuracy and timeliness of these data by physically visiting the sites where activities are taking place—such as farms, collection centres, dry mills, or other facilities—to gather data, verify compliance, assess risks, and ensure that plans or policies are being effectively implemented. |
17 | 15 | How do you collaborate with farmers and suppliers to ensure adherence to deforestation-free and legal practices? | Simexco Daklak, in line with directives from state authorities, actively supports and communicates with our supplier network, particularly local farmers who are land users. We inform them of the EUDR compliance requirements and encourage them to fully disclose the current status of their coffee farms, especially those located near forested areas. Besides having consistently worked together to ensure that none of the coffee production areas within our supply chain overlap with deforestation-risk zones (i.e., 100% of coffee products are sourced from non-deforested lands and areas free from land-use disputes), we mitigate risks by implementing strong company policies to foster transparency and promoting responsible land use practices among all stakeholders and establish a two-way documented commitment to EUDR compliance, which is specifically tailored to support farmers and collectors, who are our direct suppliers and involves principles to promote voluntary but principled cooperation between parties in the coffee supply chain, ensuring compliance with EUDR and other sustainability standards such as RA, 4C, and Fairtrade. |
18 | 16 | What support or training do you provide to them regarding EUDR compliance? | To gain a comprehensive understanding of the socioeconomic context of each farm, frequent on-site assessment is conducted by Simexco’s robust team of 30 agronomists on the primary income sources of the households involved in farming activities. By evaluating these income sources, insights are gathered into the economic stability and potential pressures faced by these households. This step is crucial in identifying cases where additional support or resources may be necessary to promote sustainable farming practices effectively. It also aids in developing strategies to prevent activities that could contribute to deforestation, aligning both environmental and social sustainability goals. |
19 | 17 | What systems are in place to continuously monitor compliance with EUDR requirements? | Traceability and Transparency Legal Compliance Monitoring and Reporting Engagement and Training Risk Management |
20 | 18 | Do you conduct regular audits or assessments of your supply chain? | Regular updates to maintain the geospatial data's relevance, aligning with each crop to ensure the geolocation data remains up-to-date. Targeted field checks conducted both annually and on an ad hoc basis to further strengthen transparency and ensure adherence to regulatory requirements, supporting a transparent, compliant supply chain for responsibly sourced coffee. |
21 | 19 | What initiates desk-based checking? | The goal of desk-based checking is to verify if the company's due diligence system is effective and whether it adequately ensures that the imported goods are in line with the EUDR’s sustainability criteria. It allows authorities to ensure compliance without needing direct field inspections, although this may also occur if discrepancies or concerns arise during desk checks. |
22 | 20 | Is your coffee supply chain covered by a coffee sustainability and/or certification and/or verification? | Integrating sustainability certifications, such as Fairtrade, Rainforest Alliance, and 4C, into a company's operations helps mitigate environmental, social, and financial risks by ensuring compliance with legal standards, enhancing market access, and building consumer trust fostering long-term business sustainability, competitiveness, and community resilience. These certifications promote environmental responsibility, fair labor practices, and traceability, reducing the risk of legal, reputational, and operational issues. They also provide transparency in the supply chain, improve access to financing, and encourage continuous improvement through regular audits. Recognizing the importance of supporting local communities, we also promote implementation of joint programs and projects offering training and essential resources and catering ongoing needs, reducing farmers' dependency on high-risk factors within the value chain. |
23 | 21 | How are you addressing the challenges that smallholder farmers may face in meeting EUDR requirements? | While we have consistently worked together to ensure that none of the coffee production areas within our supply chain overlap with deforestation-risk zones (i.e., 100% of coffee products are sourced from non-deforested lands and areas free from land-use disputes), we mitigate risks by implementing strong company policies and fostering a two-way commitment to EUDR compliance. These efforts are specifically tailored to support farmers and collectors, who are our direct suppliers. This approach is key to fostering transparency and promoting responsible land use practices among all stakeholders. |
24 | 22 | How do you communicate this requirement and secure compliance from your suppliers and sub-suppliers (e.g., contractual assurances)? Please provide an example. (Article 11) | We actively build strong company policies and fostering a two-way commitment between the company and its suppliers to EUDR compliance. These efforts are specifically tailored to support farmers and collectors, who are our direct suppliers. This approach is key to fostering transparency and promoting responsible land use practices among all stakeholders. |
25 | 23 | What initiatives are in place to support supplier and farmers in achieving compliance? | Smallholders to be informed and assisted with Deforestation Regulation compliance (e.g., through capacity building and investments). To gain a comprehensive understanding of the socioeconomic context of each farm, frequent on-site assessment is conducted by Simexco’s robust team of 30 agronomists on the primary income sources of the households involved in farming activities. By evaluating these income sources, insights are gathered into the economic stability and potential pressures faced by these households. This step is crucial in identifying cases where additional support or resources may be necessary to promote sustainable farming practices effectively. It also aids in developing strategies to prevent activities that could contribute to deforestation, aligning both environmental and social sustainability goals. |
26 | 24 | How do you acknowledge your cooperation to phyical visits or data sharing requests? | Buyers or the EU retain the right to audit or inspect the responses to this questionnaire. Farmers and collection centers are fully informed and provide consent for any physical visits or requests for data sharing. |