In today’s globalised marketplace, achieving comprehensive visibility of your supply chain isn’t just a goal—it’s now a mandatory requirement. With strict new regulations such as the European Union’s Deforestation Regulation (EUDR) coming into force within a matter of weeks, companies are under increasing pressure to ensure their operations are not contributing to deforestation.
The EUDR and its impact on businesses
The EUDR aims to prevent the import and sale of products linked to deforestation in the EU market. It covers specific commodities, including cattle, cocoa, coffee, palm oil, soy, wood, and rubber, as well as products derived from these commodities, such as leather, paper, and furniture. To achieve EUDR compliance, these products must be deforestation-free, meaning they must not originate from land deforested after December 31, 2020.
Key features of the EUDR include traceability and due diligence. Companies must provide geographic coordinates of the land where the commodities were produced, linking the products to specific plots. They also must assess the risk of deforestation and demonstrate compliance through a due diligence process. The regulation applies to both EU and non-EU companies that import, export, or trade these commodities to or from the EU market. Operators must ensure that their products comply with legal requirements and are deforestation-free. The EUDR will come into full effect on December 30, 2024, with different timelines for small and micro-sized enterprises.
The challenge of achieving EUDR compliance
Achieving compliance with the EU Deforestation Regulation (EUDR) presents several significant challenges for businesses. One major hurdle is meeting the stringent traceability requirements, which demand full visibility of every entity within the supply chain, extending to raw material origins, prior to conducting risk assessments or due diligence. This is particularly difficult for businesses with complex, global supply chains, where transparency is rarely standard practice. Additionally, acquiring the required information from suppliers can be highly challenging, especially in cases where language barriers exist, as common languages may not be widely spoken or understood across all regions involved in the supply chain.
How businesses can achieve EU Deforestation Regulation compliance
The optimal way to overcome these challenges and achieve EUDR compliance is through a deforestation impact assessment that utilises supply chain mapping. In this approach geolocation tools are used to pinpoint supplier locations with the precision required by the legislation (up to six decimal places) and due diligence platforms are used to assess supply chain risks using relevant datasets. As with any testing service, it is essential for businesses to have a thorough understanding of the results of such an assessment and respond effectively to fully meet the legislative requirements. Given the complex nature of the results, identifying a partner that hands over results with a comprehensive discussion is highly valuable.
The benefits of Eurofins’ deforestation impact assessment
Eurofins have developed an EUDR deforestation impact assessment to help companies in scope of the EUDR understand their current position and meet the stringent requirements. The EUDR due diligence requirements consist of three core elements
- Information requirements as outlined in Article 9
- Risk assessment in accordance with Article 10
- Risk mitigation measures in accordance with Article 11
Eurofins employs data collection to trace and identify the entire supply chain, gathering information and evidence specific to Article 9 through a streamlined process. The collected information includes but is not limited to
- The country and region of production, including geographic coordinates or polygons for all land plots where the commodities and relevant products were produced
- Product specific information such as the common and scientific name of the species, where tracing wood
- Business and contact information for all entities within the supply chain
Following the data collection, Eurofins will deliver a detailed risk assessment in alignment with article 10, utilisng globally recognised datasets to evaluate deforestation risk in the supply chain. During a meeting that discusses the results in great detail, Eurofins will clearly outline the product supply chains as either compliant, non-compliant, or at risk of non-compliance. Where supply chains have been identified as non-compliant, or at risk of non-compliance, the company will be advised to undertake risk mitigation measures in accordance with Article 11, to reduce risk to no, or only a negligible level.
To maintain alignment with the EUDR and ensure ongoing adherence, Eurofins offer an annual review of supply chain assessments, providing regular updates to keep risk assessments current and reflective of any changes in regulations or supply chain dynamics.
Get started today
Navigating the complexities of supply chain transparency and regulatory compliance can be daunting, but you don’t have to do it alone. Our EUDR Deforestation Impact Assessment is here to provide the support and insight you need to thrive in a regulatory environment. With our robust datasets, tailored reporting, and expert guidance, achieving full visibility and compliance has never been easier.
Contact us today to learn more about how our EUDR Deforestation Impact Assessment can transform your business, help achieve compliance with the EU Deforestation Regulation and setting you on the path to sustainable success.
