How Satellite AI is Revolutionizing Deforestation Detection and Supply Chain Transparency

Satellite AI offers a precise solution for detecting deforestation in real time and making supply chains more transparent. Unilever demonstrates with its palm oil pilot project how this technology can be successfully used to promote sustainability and meet legal requirements such as the EU Deforestation Regulation (EUDR). In fact, Unilever’s approach aligns with a broader industry shift, as companies increasingly leverage advanced monitoring to comply with new regulations and consumer expectations for ethical sourcing (Earthworm Foundation).

Key Takeaways at a Glance:

• Success at Unilever: 95.7% of palm oil proven to be deforestation-free (as of 2024) according to Unilever's sustainability reports.
• Technology Use: Combination of satellite monitoring, AI analysis, and blockchain.
• Challenges: Mixing of certified and non-certified raw materials, complex supply chains, and lack of infrastructure among smallholders.
• Results: Over 430,000 hectares of protected ecosystems and improved traceability.

Comparison of Key Technologies:

These technologies enable companies to identify risks early and build sustainable supply chains. According to the World Resources Institute, AI-powered satellite systems have revolutionized forest monitoring by providing near real-time alerts, which are crucial for rapid response and enforcement.

EU Deforestation Regulation from 2025: Legally Compliant Implementation for Companies

Challenges in Supply Chain Monitoring

Palm oil supply chains are often so complex that full monitoring of sustainability becomes difficult. To overcome these hurdles, new approaches are needed—as the following examples illustrate. The Center for International Forestry Research (CIFOR) highlights that traceability is especially challenging in regions with thousands of smallholder farmers and fragmented supply networks.

Mixing of Raw Materials

A major issue is the mixing of certified and non-certified palm oil products, which significantly complicates traceability. Around 50% of RSPO-certified palm oil is produced under the mass balance model, where certified and non-certified palm oil are blended. Additionally, only 58% of certified palm oil is actually sold as such. The rest is downgraded and marketed as conventional palm oil (RSPO).

"Despite strong demand for segregated volumes from our members, there simply isn’t enough supply. Switching the system from mass balance to segregated is a significant challenge."
– Arnaud Bonisoli, Project Manager for Sustainable Supply Chains at Transitions

Limits of Manual Audits

Traditional audits based on physical inspections quickly reach their limits. The following overview shows where the weaknesses lie:

Research by Science of The Total Environment confirms that remote sensing and AI dramatically outperform manual audits in both speed and scale, making them indispensable for large-scale monitoring.

Verification of Smallholders

Smallholders, who manage about 80% of agricultural land in Asia and account for 80% of food production, present another challenge. There is often a lack of technical infrastructure and digital documentation, making monitoring difficult. These structural deficits significantly hinder transparent traceability (FAO).

"Supply chain transparency is a tool, not an end goal. Palm oil faces unique challenges, mainly due to a highly fragmented and complex supply chain."
– Edwina McKechnie, Associate Director at BSR

All these challenges highlight the necessity of using modern technologies such as AI-powered satellite monitoring to control supply chains more efficiently. Initiatives like Global Forest Watch demonstrate how open-access satellite data and AI can empower both companies and smallholders to improve traceability and sustainability.

Satellite AI System Components

Multi-Satellite Data Collection

Modern satellite monitoring uses a combination of optical, radar, and thermal sensors to reliably detect changes in forest cover—even under challenging conditions. For example, the European Space Agency’s Sentinel satellites provide critical radar data that can penetrate cloud cover, ensuring year-round monitoring.

This versatile data foundation is analyzed by AI systems in real time to deliver fast and precise insights.

Forest Loss Detection Systems

With the help of AI algorithms such as Ultralytics YOLOv8, satellite data is evaluated in real time to accurately document land use changes. According to recent studies, such AI models can achieve over 90% accuracy in detecting deforestation events, enabling early intervention.

"If we only discover deforestation through satellite data, all we can do is inform the authorities—the forest is already gone. But if we can show them the at-risk areas in advance, deforestation can be prevented. That’s a major shift in the fight against deforestation." – Carlos Souza, Senior Researcher at Imazon

These systems deliver impressive results: 75% of areas classified as at risk are located within just 4 km of actual deforestation sites.

Blockchain Data Security

Blockchain technology ensures tamper-proof documentation of all data transactions. With the help of smart contracts, data flows are automated, reducing manual intervention. The World Economic Forum notes that blockchain’s transparency and immutability are key for building trust in sustainability claims.

"Blockchain enables an unbroken monitoring chain for data—whether it’s stored or transmitted, from end user to end user, satellite to satellite, stored on our satellites or combined with artificial intelligence to detect anomalous transactions." – Dennis Gatens, Chief Commercial Officer, Cloud Constellation

This technology not only protects data integrity but also supports preventive measures to more effectively prevent deforestation.

Results of the Unilever Palm Oil Program

The AI-powered satellite systems described above make it possible to measure progress in Unilever’s palm oil program. These efforts are part of a wider industry movement, as seen in similar initiatives by Nestlé and Ferrero (Nestlé Palm Oil Progress).

Program Monitoring Area

The program focuses on a specially developed monitoring system for Indonesia and Malaysia, covering an impressive area of over 20 million hectares. Since 2021, an investment of €218 million in Unilever Oleochemical International (UOI) in Sei Mangkei, North Sumatra, has enabled direct sourcing from local mills.

Data Collection Methods

Data collection combines state-of-the-art satellite technology with on-site inspections to analyze the supply chain in detail. Unilever also collaborates with partners like Satelligence and Earthworm Foundation to enhance data accuracy and local engagement.

“The latest digital capabilities help us better identify high-risk areas and focus interventions where they are most urgently needed.”

The technologies and methods used include:

• Anonymized mobile data to analyze transport routes
• Crowdsourced documentation in the Aceh region
• Blockchain technology to ensure traceability
• Satellite image analysis via Google Cloud

These approaches have a direct impact on the measurable results of the program.

Program Results

The numbers speak for themselves: By the end of 2023, 97.5% of key raw materials could be certified as demonstrably deforestation-free. The number of supplying mills was also reduced from 1,700 to 500, significantly increasing monitoring efficiency (Unilever News).

“Better monitoring helps all of us understand what’s happening in our supply chains. With a clearer picture, the risk of issues like deforestation can be better assessed. We want to be the first to know, and the first to act.”

Key Achievements at a Glance:

• 430,000 hectares of protected and restored ecosystems
• RSPO certification for 14,000 independent smallholders
• 148,000 tons of RSPO smallholder certificates by 2024
• 30% improvement in traceability in the first supply chain tier

Steps for Corporate Implementation

Implementation in the Supply Chain

Integrating satellite AI into supply chains requires a structured approach. Companies must adapt their IT infrastructure while considering current sustainability standards. The process typically begins with a detailed supply chain analysis, followed by regional pilot projects that are gradually expanded to larger areas. Unilever’s pilot projects, for example, have shown how technological advantages can be particularly effective during the implementation phase. The McKinsey Global Institute emphasizes that digital transformation is key to scaling sustainability across global supply chains.

With general implementation as a foundation, the next section describes how certification processes such as those of the RSPO can be integrated.

Methods for Integrating RSPO

The combination of satellite monitoring and RSPO certification, such as through the RSPO Hotspot Hub System, enables real-time monitoring of slash-and-burn activities inside and outside RSPO concessions. This integrated approach is recognized as a best practice for meeting NDPE (No Deforestation, No Peat, No Exploitation) commitments (RSPO Supply Chain Certification).

"The RSPO Principles & Criteria and RSPO Supply Chain Certification is the best way for companies and governments to meet their No Deforestation, No Peat, No Exploitation (NDPE) commitments as it applies to palm oil sourcing policies." – Roundtable on Sustainable Palm Oil

Technically, this integration is based on a combination of high-resolution satellite images (1.5-meter resolution), radar sensors for weather-independent monitoring, and blockchain-based traceability. For such a monitoring system to function effectively, powerful risk detection is essential. The next section highlights how this is achieved.

Risk Detection Systems

Preventive risk detection in deforestation requires a multi-layered monitoring system. One example is the dashboard used by Unilever, which integrates data from various sources, maps, and supply chain information. Key components include:

• AI-based predictive analytics to identify potential deforestation hotspots.
• Multi-source monitoring that incorporates climate data and economic indicators.
• Automated alarm systems that send instant notifications in case of suspicious activity.

These systems help companies not only track their sustainability goals transparently and measurably, but also efficiently meet regulatory requirements such as those of the EUDR. According to CDP, predictive analytics and automated alerts are increasingly critical for proactive risk management in supply chains.

FAQs

How do satellites, AI, and blockchain work together to stop illegal deforestation?

Satellites enable real-time forest monitoring and provide high-resolution images that reveal even the smallest changes in forest cover. This data is then analyzed using artificial intelligence (AI) to identify patterns and quickly detect unusual activities such as illegal deforestation. The Global Forest Watch platform is a prime example of how these technologies work together to deliver actionable insights.

Additionally, blockchain technology plays a crucial role by storing all key information—such as wood origin—in an immutable digital ledger. This combination of modern technologies helps companies make their supply chains more transparent and responsible. At the same time, it helps prevent illegal practices, protect the environment, and ensure compliance with ESG goals. The World Economic Forum underscores blockchain’s value for verifying sustainability claims in complex supply chains.

What obstacles do smallholders face in participating in sustainable supply chains, and how can these be overcome?

Smallholders face a variety of challenges when it comes to joining sustainable supply chains. They often lack access to regulated markets because they do not have knowledge of sustainable agricultural practices. This makes it difficult for them to meet certification standards. This not only results in financial disadvantages but also increases the risk of deforestation (FAO).

There are, however, solutions: Targeted training programs and partnerships between companies and NGOs can play a decisive role. Measures such as providing resources for certification or using modern technologies like geospatial mapping can economically empower smallholders. At the same time, this helps make supply chains more environmentally friendly and future-proof. The RSPO and Earthworm Foundation have both documented successful smallholder inclusion programs that boost sustainability and livelihoods.

How can Unilever’s satellite AI technology be used to prevent illegal deforestation in other industries or regions?

Unilever’s Use of Satellite AI in the Fight Against Illegal Deforestation

Unilever demonstrates how modern technologies like satellite AI can be effectively used to combat illegal deforestation and monitor land use changes. These methods are not limited to forestry—they can also be applied in other sectors such as agriculture or mining. The goal is to promote sustainable practices and detect illegal activities at an early stage. For instance, research in Africa shows that satellite-based early warning systems led to an 18% reduction in deforestation rates. These systems not only enable accurate environmental monitoring but also provide greater transparency in supply chains. Companies benefit by being able to achieve their ESG goals more effectively. Thanks to their broad range of applications, such technologies are a powerful tool in the global fight against deforestation (WRI).