Applicability of supply shed approach in global supply chains: integrating supply shed and landscape approaches for natural capital assessment

Abstract Private companies are increasingly expected to evaluate and disclose their environmental impacts across entire value chains, yet supplier-level traceability remains highly burdensome. Core barriers include supplier volatility, commodity mixing, and nondisclosure by upstream actors. These challenges limit the feasibility of site-specific monitoring and hinder compliance with emerging frameworks such as the Taskforce on Nature-related Financial Disclosures (TNFD), the European Union Deforestation Regulation (EUDR), and the Kunming–Montreal Global Biodiversity Framework adopted under the Convention on Biological Diversity (CBD). In response, the “supply-shed” approach has emerged as a pragmatic alternative. By grouping suppliers within defined markets or regions, it enables collective impact assessment and management without requiring precise supplier identification. This method, already applied in corporate Scope 3 greenhouse gas accounting, reduces costs while maintaining meaningful links to environmental outcomes. Integrating the supply-shed concept with landscape approaches provides a hybrid framework that balances practicality and ecological relevance. The supply-shed brings organizational clarity and accountability within supply chains, while the landscape approach anchors assessments in spatial and ecosystem-specific boundaries. Together, they allow companies to conduct initial risk screening at regional scales using secondary data, remote sensing, or environmental DNA (eDNA), followed by targeted supplier-level studies when higher resolution is necessary. This model offers efficiency in addressing traceability barriers and supports more systematic monitoring of biodiversity, water, and land-use impacts. Looking ahead, critical issues remain in defining responsibility across overlapping supply-sheds, ensuring coordination within broader landscapes, and aligning with regulatory regimes that may burden smallholders. Nonetheless, embedding supply-shed–landscape hybrids into evolving policy frameworks presents a cost-effective and inclusive pathway for corporate natural capital assessment. Such integration can lower financial and technical barriers, expand corporate participation, and foster more credible contributions to global biodiversity conservation.

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Publication Details

Journal
Environmental Research Communications
Published
2026-01-26
DOI
https://doi.org/10.1088/2515-7620/ae3d83
Primary Topic
Food Supply Chain Traceability
Type
article
Field-Weighted Citation Impact
0.00

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article

Applicability of supply shed approach in global supply chains: integrating supply shed and landscape approaches for natural capital assessment

Keishi NAKAO, Ryo Kohsaka
Environmental Research Communications
Food Supply Chain Traceability
article

Applicability of supply shed approach in global supply chains: integrating supply shed and landscape approaches for natural capital assessment

Keishi NAKAO, Ryo Kohsaka
article en

Abstract

Abstract Private companies are increasingly expected to evaluate and disclose their environmental impacts across entire value chains, yet supplier-level traceability remains highly burdensome. Core barriers include supplier volatility, commodity mixing, and nondisclosure by upstream actors. These challenges limit the feasibility of site-specific monitoring and hinder compliance with emerging frameworks such as the Taskforce on Nature-related Financial Disclosures (TNFD), the European Union Deforestation Regulation (EUDR), and the Kunming–Montreal Global Biodiversity Framework adopted under the Convention on Biological Diversity (CBD). In response, the “supply-shed” approach has emerged as a pragmatic alternative. By grouping suppliers within defined markets or regions, it enables collective impact assessment and management without requiring precise supplier identification. This method, already applied in corporate Scope 3 greenhouse gas accounting, reduces costs while maintaining meaningful links to environmental outcomes. Integrating the supply-shed concept with landscape approaches provides a hybrid framework that balances practicality and ecological relevance. The supply-shed brings organizational clarity and accountability within supply chains, while the landscape approach anchors assessments in spatial and ecosystem-specific boundaries. Together, they allow companies to conduct initial risk screening at regional scales using secondary data, remote sensing, or environmental DNA (eDNA), followed by targeted supplier-level studies when higher resolution is necessary. This model offers efficiency in addressing traceability barriers and supports more systematic monitoring of biodiversity, water, and land-use impacts. Looking ahead, critical issues remain in defining responsibility across overlapping supply-sheds, ensuring coordination within broader landscapes, and aligning with regulatory regimes that may burden smallholders. Nonetheless, embedding supply-shed–landscape hybrids into evolving policy frameworks presents a cost-effective and inclusive pathway for corporate natural capital assessment. Such integration can lower financial and technical barriers, expand corporate participation, and foster more credible contributions to global biodiversity conservation.

Environmental Research CommunicationsVol. 8(2)
The University of Tokyo (JP)
Environmental Restoration and Conservation Agency, Japan Society for the Promotion of Science
Life in Land
Openalex Percentile: Top 77%
Food Supply Chain Traceability
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