EUDR STANDARD COMPLIANCE GUARANTEE

EUDR Compliance and Responsible Cocoa Sourcing in Peru

In my capacity as Director, and on behalf of Sierra Naturals, I confirm that we are implementing a comprehensive and structured plan to fully align with the requirements of the EU Deforestation Regulation (EUDR). Our objective is to ensure that all cocoa plots within our Peruvian supply chain are demonstrably free from deforestation as of December 31, 2020.

In 2025, we conducted an initial diagnosis and evaluation of all registered cocoa plots within our organic farmer network. This assessment covers producers located in the regions of San Martín, Ucayali, and Junín. Each plot has been individually geo-referenced and assigned a unique code, ensuring a high level of precision, traceability, and data integrity. This process enables us to reliably verify the deforestation status of each plot in relation to the EUDR cut-off date.

To support this verification, we apply a combination of robust assessment methodologies:

  • Producer declarations and testimonies: We collect historical land-use information through structured interviews with farmers, providing an initial validation of crop age and land history.
  • Satellite image analysis: We analyse satellite imagery from around December 31, 2020, to assess land use at the cut-off date, identifying whether plots were used for cocoa cultivation, other crops, fallow land, or forest.
  • Field verification: Where satellite data is unavailable or inconclusive, we conduct on-site assessments, including direct observation and, where applicable, dendrochronological analysis to determine plantation age.

Our sourcing model in Peru is built on close collaboration with established local cooperatives. This allows us to maintain direct engagement at the farm level and ensures full visibility and control across all stages of the supply chain.

We systematically collect and verify detailed farm-level data, including precise geolocation coordinates for every cocoa plot. This ensures that all cocoa can be accurately traced back to its origin, meeting a core requirement of the EUDR and reinforcing accountability throughout the supply chain.

A key element of our approach is the strategic investment in digital tools such as the Osapiens platform, which enables us to guide, streamline, and scale this entire process. Through this system, all relevant data from our cooperative partners—including farm mapping, production records, and supplier documentation—is consolidated into a single, structured environment. This not only improves data accuracy and consistency but also significantly reduces administrative complexity, supports real-time monitoring, and ensures that all information is readily available for compliance reporting and audits.

In line with the legal requirements of the EUDR, we ensure that all cocoa is produced in accordance with applicable Peruvian laws. This includes compliance with national land-use regulations, environmental legislation, and agricultural production standards. We maintain documentation supporting legal land tenure and verify that all farmers and cooperatives operate within the established legal framework.

Our due diligence system is embedded across the entire supply chain. We continuously verify supplier information, maintain up-to-date documentation, and monitor sourcing practices to ensure ongoing compliance. This approach ensures that EUDR alignment is not a one-time exercise, but a continuous and verifiable process.

Through this integrated approach—combining cooperative partnerships, rigorous verification methods, legal compliance, and investment in advanced digital traceability systems—we ensure a high level of reliability, transparency, and control in our Peruvian cocoa sourcing.

This enables Sierra Naturals to meet EUDR obligations consistently, credibly, and verifiably.