The EU Deforestation Regulation (EUDR) is designed to minimize deforestation and forest degradation linked to supply chains. Companies importing or exporting certain products must ensure they are deforestation-free and comply with due diligence requirements. Here’s what businesses need to know:

What is EUDR?

Aims to reduce the EU’s impact on global deforestation.
Ensures supply chains are free from forest-harming activities.
Promotes sustainable and ethical sourcing practices.
Aligns with the EU’s climate change and biodiversity commitments.

Products Covered by EUDR:

Cattle
Cocoa
Palm Oil
Soya & their derivatives (Annex 1)
Coffee
Rubber
Wood

Timeline for Compliance:

Dec 2022: EUDR agreed upon.
Jun 2023: Regulation enters into force.
Dec 2024: Non-SMEs must ensure due diligence.
Jun 2025: SMEs must comply with regulations.

Key Compliance Requirements:

Due Diligence: Companies must conduct due diligence before placing products on the market or exporting them.
Risk Assessment & Mitigation: Implement controls, use independent audits, and manage risks proactively.
Documentation & Reporting: Maintain an updated due diligence system and publicly report on performance annually.

Information Companies Must Provide:

Country of production
Geo-location
Supply chain details
Risk assessment reports

Penalties for Non-Compliance:

Fines of up to 4% of the company’s annual EU turnover.
Suspension of market access and product seizure.
Public listing of non-compliant companies and penalties imposed.

Why EUDR Matters:

With increasing global sustainability regulations, compliance with EUDR is not optional. Businesses must integrate deforestation-free sourcing into their operations, ensuring ethical and transparent supply chains. Acting now can prevent legal risks and strengthen brand reputation.