Key Points

◆Against the backdrop of growing momentum around TNFD and environmental due diligence, the study organizes key traceability barriers in corporate supply-chain natural capital assessment into three types: supplier volatility, physical commingling (mixing), and non-disclosure of supplier information.
◆Recognizing the practical difficulty of full supplier-level traceability, the study proposes introducing a supply-shed approach as a transitional solution.
◆Building on a hybrid supply-shed × landscape framework, the study proposes a two-stage process that links wide-area screening using objective data (e.g., remote sensing and environmental DNA) to targeted supplier-level due diligence in high-risk areas.
◆As implementation-oriented research issues, the study highlights responsibility allocation and the avoidance of double counting, the need for third-party coordination, and risk-proportionate compliance burdens for low-risk areas in light of regulations such as the EUDR.

Summary

Assessing natural capital impacts across global supply chains has become increasingly important under the Kunming–Montreal Global Biodiversity Framework, the Taskforce on Nature-related Financial Disclosures (TNFD), and regulatory instruments such as the EU Deforestation Regulation (EUDR). However, supplier-level assessments face substantial practical constraints arising from supplier volatility, physical mixing of commodities, and limited data disclosure.

This study examines the applicability of the supply-shed approach to corporate natural capital assessment and proposes a hybrid framework integrating supply-shed and landscape approaches. By combining area-based screening with spatially explicit and objective data sources—such as remote sensing and environmental DNA (eDNA)—the framework seeks to enhance cost-effectiveness while maintaining ecological relevance.

Positioned as a transitional pathway toward more detailed supplier-level assessments, the proposed approach provides academic insights into proportionate, risk-based strategies for corporate nature-related assessment and emerging regulatory frameworks.

Figure 1. Relationship between supplier approach, supply-shed approach, landscape approach, and their correspondence to supply chain challenges
The supply-shed and landscape approaches can be mutually complementary when implemented in an integrated manner.
They are particularly effective in addressing variability in sourcing locations and the physical mixing of materials

Journal Information

Journal: Environmental Research Communications 
Title: Applicability of Supply Shed Approach in Global Supply Chains: 
Integrating Supply Shed and Landscape Approaches for Natural Capital Assessment 
Authors: Keishi Nakao (First Author), Ryo Kohsaka
Date: January 2026
DOI: https://doi.org/10.1088/2515-7620/ae3d83

Research Grants

This study was supported by JSPS KAKENHI (JP22H03852, JP23H01584, JP23H03605), the JST Program for Co-creation in Knowledge Integration (JPMJPF2110), and the Environment Research and Technology Development Fund (JPMEERF20241M03) of the Environmental Restoration and Conservation Agency, provided by the Ministry of the Environment, Japan

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Contact

Professor Ryo Kohsaka (Attn: Keishi Nakao) 
Graduate School of Agricultural and Life Sciences, The University of Tokyo
The Laboratory of Forest Landscape Planning and Design, Department of Forest Science,Graduate School of Agricultural and Life Sciences The University of Tokyo
E-mail: kohsaka.lab[at]gmail.com / kohsaka.seminar[at] gmail.com
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