What are deforestation- and conversion-free (DCF) commitments?

In a world where consumers, regulators, and investors demand evidence of sustainable sourcing, Deforestation- and Conversion-Free (DCF) commitments are rapidly moving from “nice-to-have” to “non-negotiable.”

Unlike traditional “deforestation-free” policies, which focus solely on forests, DCF commitments broaden the scope to all natural ecosystems, safeguarding forests, grasslands, wetlands, peatlands, and savannahs from being converted into farmland or other uses after a set cut-off date.

This wider lens not only addresses biodiversity conservation more comprehensively but also builds resilience into the global supply chain, ensuring companies can access demanding markets and meet growing regulatory pressures.

Why DCF goes beyond “deforestation-free”

When we talk about “deforestation-free,” the spotlight is on forest loss. But what about other ecosystems under threat?

Ecosystem conversion—turning natural grasslands into cropland, draining wetlands, or clearing savannahs—can be just as devastating for biodiversity and climate stability. DCF commitments close this gap by focusing on deforestation and conversion-free supply chains.

In doing so, they:

• Safeguard biodiversity across different habitats, not just trees.
• Meet investor and customer expectations for ESG risk management.
• Reduce long-term business risk, including regulatory compliance challenges and supply disruptions.

DCF vs EUDR: two related but different frameworks

One common misconception is that DCF is the same as the EU Deforestation Regulation (EUDR).

They are complementary, but not identical:

Companies that comply with the EUDR have data verification and risk assessments in place, which can also facilitate the expansion of DCF verification.

How to implement DCF commitments

1. Establish a baseline and a cut-off date

The first step is to establish the point in time after which you will not source from land that has been deforested or converted. This date should be based on credible, verifiable land-use change data and will serve as your benchmark for demonstrating compliance.

Make sure this cut-off date is widely understood—both within your organisation and across your supplier base, since certain buyers will only engage with companies that can prove adherence to it.

2. Define your unit of analysis

Your verification approach could be at a jurisdictional level (district, municipality) or attain more accuracy with supply sheds. Supply sheds can be extremely simplified (buffer zones based on 10, 25, or 50 km radius) or very sophisticated (using distance, terrain, cadastral, crop, and certification datasets to model out the precise areas of cultivation that deliver into the facility). The most granular unit of analysis is based on farm-plot mapping in the field.

If farm-level data is unavailable, an area-based (jurisdictional, buffers) or supply shed approach can be considered. Meridia can model out accurate supply sheds, which minimise false positives by reflecting real-world supply dynamics.

For all the above options, we assume that you have a list of the sourcing facilities and their locations (Meridia can support with the identification of facilities if necessary). The more granular your analysis, the stronger your verification will be, making it easier to meet the expectations of high-standard customers and industry coalitions.

Meridia’s specialists can support you in designing a DCF methodology that fits your sourcing realities, defining parameters that ensure accuracy and credibility.

3. Ensure accurate and reliable field data to conduct regular risk assessments

The quality of your risk assessments is only as strong as the data behind them. Without precise, up-to-date, and validated field information, even the most advanced monitoring tools can produce unreliable results.

Conducting regular, high-quality risk assessments is essential for identifying potential deforestation or ecosystem conversion threats early, so you can take corrective action before they escalate into non-compliance. Frequency matters — ongoing checks enable you to stay ahead of risks, safeguard supply chain integrity, and maintain access to demanding markets.

• Clean, validate, and structure your field data to ensure audit readiness and compatibility with monitoring systems. Meridia offers specialised data cleaning and standardisation services to help streamline this process.
• Test your sourcing data rigorously, whether at the farm level, buffer zone, or supply shed scale, for accuracy, consistency, and plausibility. A solution like Verify can automate this process, giving you reliable inputs for decision-making.

4. Maintain ongoing supplier engagement and oversight

Embed your DCF requirements directly into supplier agreements, and back them up with training sessions and practical guidance to support compliance. Put in place a structured monitoring process along with a clear grievance mechanism to address issues as they arise. This approach fosters shared accountability among both direct and indirect suppliers, making it clear that negligence to meet DCF standards can lead to losing access to important markets.

Challenges concerning DCF commitments

Implementing and maintaining DCF commitments involves several distinct yet interconnected challenges. These can be broadly categorised into technical complexity, investment scale, data quality, supplier transparency, and compliance visibility.

Technical complexity

• Traceability to plot level: Achieving accurate, farm- or plot-level traceability is technically demanding, especially in fragmented supply chains with many smallholders. 
• Mapping indirect suppliers: Tracking commodities from indirect or intermediary suppliers introduces further difficulty due to limited transparency and scarce geospatial data.
• Geospatial data challenges: Ensuring geolocation accuracy, conducting remote monitoring using satellite imagery, and interpreting historic land-use changes require advanced tools and expertise.
• Defining and classifying land use: Differentiating between deforestation and broader ecosystem conversion demands clear definitions and expert identification of diverse land-use categories, complicating compliance analysis.
• Infrastructure and data fragmentation: Supply chains in regions with limited infrastructure and dispersed data sources amplify coordination and data integration difficulties.

Scale of investment

• Financial resources: Sufficient budget allocation is essential for farm mapping, data infrastructure, and technology acquisition, which are often overlooked or underfunded.
• Human and technical capacity: Implementing and sustaining DCF systems demands skilled personnel for data collection, analysis, supplier engagement, and ongoing monitoring.
• Long-term supplier engagement: Investing in training, contracts, and remediation with suppliers, especially smallholders, requires continuous effort and resources beyond initial implementation.

Data quality and supplier transparency

• Inconsistent or poor-quality data: Variability in geolocation data quality and incomplete supplier information undermine the accuracy of risk assessments.
• Limited supplier visibility: Particularly with indirect suppliers, a lack of direct relationship complicates the collection of reliable data and the enforcement of DCF policies.
• Risk of false negatives/positives: Using inadequate location data (e.g., single GPS points rather than polygons) can either mask actual risk or cause false alarms, affecting decision-making.

Compliance visibility and risk assessment

• Overestimated compliance: Many companies discover that their supply chains are less compliant than initially assumed, especially when accounting for indirect sourcing and conversion risks.
• Complex cut-off dates and ecosystem scopes: Aligning internal policies with multiple regulatory frameworks and differing cut-off dates complicates compliance management.
• Documentation and audit readiness: Maintaining transparent, verifiable records across fragmented networks is resource-intensive but critical for due diligence.

Simplify meeting your DCF Commitments with Meridia

Meridia Verify turns ambitious DCF commitments into clear, verifiable proof, helping you detect risks, ensure legal compliance, and maintain supply chain integrity with confidence.

Why choose Verify for DCF?

Identify potential deforestation and conversion risks in your supply chain in real time — not just in forests, but also in savannahs, peatlands, wetlands, and other critical non-forest ecosystems. 

Go beyond environmental checks with legal compliance verification

Verify tests compliance with locally relevant laws and regulations in the country of origin, including:

• Land use rules and production laws
• Embargoes on illegal deforestation and conversion
• Protected areas
• Indigenous and community land rights
• Environmental protection
• Human rights and forced labour restrictions

Prioritise and act on high-risk suppliers

Our actionable dashboards highlight high-risk suppliers, provide context for each identified risk, and suggest targeted remediation actions. This allows you to focus resources where they have the most impact.

Accessible and time-saving

Designed for ease of use, even for non-GIS experts, Verify automates risk assessments and verification workflows, saving your team valuable time and eliminating the need for manual analysis.

Methodology you can trust

Built on over a decade of field experience, our approach is transparent, version-controlled, and aligned with the latest Accountability Framework Initiative (AFi) guidance. Using country-specific, peer-reviewed datasets, we ensure repeatable, audit-ready results. All verification is independently assured under ISAE 3000 standards.

Advanced supply shed modelling

Achieving farm- or plot-level traceability can be challenging in fragmented supply chains involving many smallholders. When farm-plot data is missing, traditional buffer zones often oversimplify reality and inflate risk estimates.

Meridia’s supply shed modelling for DCF provides greater realism and accuracy by reflecting actual sourcing patterns, preventing double-counting, and disclosing uncertainties. This significantly reduces false positives and mirrors true supply chain dynamics.

Expert guidance and support

From defining your DCF methodology that fits your sourcing realities and monitoring parameters to preparing for audits, our in-house specialists can support you to ensure accuracy and credibility.

We also offer additional services in data preparation, cleaning, and audit readiness to fully align your data and documentation with DCF commitments.

Learn how Verify can support your DCF journey.

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Frequently asked DCF questions

What is a “Deforestation- and Conversion-Free (DCF)” commitment?

A DCF commitment is a pledge to ensure that none of the commodities you source come from areas where deforestation or ecosystem conversion has taken place after a specific cut-off date. These ecosystems include forests, savannahs, wetlands, and peatlands. By adopting DCF, companies help protect biodiversity and maintain essential ecosystem functions across all types of natural landscapes, not just forests.

How are deforestation and conversion different?

Deforestation is the removal of forests to make way for other land uses. Conversion is a broader term, covering the transformation of any natural ecosystem, such as grasslands, wetlands, or peatlands, into non-natural uses. Choosing a DCF policy instead of only “deforestation-free” ensures that critical habitats outside forests receive protection as well.

What does DCF mean for supply chain management?

Implementing DCF standards means confirming that your sourcing areas meet the agreed benchmark: no deforestation or ecosystem conversion after the cut-off date. This isn’t limited to direct suppliers. You also need to address risk and compliance throughout the extended chain, including indirect suppliers and intermediaries.

How are DCF commitments made operational?

Making a DCF commitment operational involves several steps: define your baseline for assessing land-use change, set a specific cut-off date, decide on your monitoring scale (from jurisdictional or buffer-based approaches to supply shed modelling or precise farm-plot mapping), conduct ongoing risk assessments using geospatial and land-use data, and keep suppliers engaged through contractual clauses, capacity building, and regular monitoring.

Why do businesses commit to DCF?

Organisations pursue DCF for a variety of strategic reasons: securing access to major markets, reducing operational risks linked to supply chain disruption, protecting brand reputation, meeting investor and stakeholder expectations, and preparing for future regulations. Beyond business interests, many also aim to actively combat biodiversity loss and climate change.

Is DCF compliance required under the EUDR?

No. DCF is a voluntary standard, while EUDR compliance is mandatory for any company selling relevant commodities into the EU. Nevertheless, a strong DCF policy can position a company well ahead of EUDR expectations by covering a wider set of ecosystems and offering greater ESG value, while being EUDR compliant can set companies up for successfully making DCF commitments.

Can a well-designed DCF program help with EUDR compliance?

Yes. Accurate sourcing maps, robust risk assessment procedures, and meticulous documentation all support the EUDR due diligence process. Just ensure that EUDR-specific rules, such as its fixed cut-off date and requirement for legal proof of origin, are fully incorporated.

What are the practical steps to reach DCF compliance?

Start by setting the ecosystems and geographic areas covered by your policy and choosing your cut-off date. Map farms using precise polygons, or use buffers or supply shed modelling. Verify your data carefully. Use satellite and land-use information for ongoing risk assessment. Train and engage suppliers (especially smallholders). Monitor supply chains continuously. Document everything in a way that is audit-ready.

What major hurdles do companies encounter with DCF?

Typical obstacles include:

• Navigating conflicting cut-off dates across different regulatory regimes and market initiatives

• Securing highly detailed, plot-specific traceability, which is often challenging to achieve within dispersed smallholder supply bases
• Consistently identifying and mapping diverse non-forest ecosystems with accuracy
• Managing data sets that are fragmented, inconsistent, or have significant gaps
• Underestimating the time, expertise, and resources required for sustained supplier engagement and continuous monitoring

How can Meridia help companies comply with DCF standards?

Verify delivers farm-level verification and automated risk assessments, integrating satellite imagery, historical land-use data, and expert evaluation to pinpoint deforestation or conversion risks, even in the most complex supply chains. Our specialists also guide companies in building a DCF methodology tailored to their sourcing realities.

Complementary services, including field polygon mapping, on-the-ground data collection, and supplier training, ensure your compliance tools cover the whole journey from policy to proof.

Why choose Meridia Verify?

Verify is an end-to-end solution for large-scale, automated DCF monitoring. Using a stringent methodology and audited process, it uses satellite analysis, expert interpretation, and high-quality datasets to uncover deforestation and conversion risks across both forest and non-forest ecosystems, even in challenging smallholder or multi-tier supply chains. 

With intuitive dashboards offering audit-ready insights and prioritised remediation actions, plus independent assurance (ISAE 3000) and expert oversight, Verify helps you maintain credible, transparent compliance and strengthen long-term supply chain resilience.

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