From first-mile digitalization to accurate reporting: we help you track and document your sustainability
The EU regulation mandates that commodities like cattle, cocoa, coffee, palm oil, rubber, soy, wood and their derived products must be deforestation-free, impacting producers, importers, exporters and traders. This prevents EU consumption from contributing to deforestation and forest degradation, reducing greenhouse gas emissions and biodiversity loss. Consumers will benefit from more sustainable products. The regulation becomes effective on December 30, 2024, for large companies, while for micro and small enterprises, it will become operational on June 30, 2025.
Conditions for market release for raw materials and products
They are deforestation-free
They have been produced in accordance with the relevant legislation of the country of production
They are covered by a due diligence statement
Obligations for Operators and Traders
Collect information about product origin (like gealocalization and traceability of land)
Deforestation risk evaluation
Risk assesment for deforestation alert
Upload Due Diligence Statement on EU Portal for products in regulation scope
Penalties
Cash penalties for maximum ammount of at least 4 % of the operator’s or trader’s total annual Union-wide turnover in the financial year.
Confiscation of the products and confiscation of revenues gained
Temporary exclusion for a maximum period of 12 months from public procurement processes
Temporary prohibition from placing or making available on the market or exporting relevant commodities and relevant products
Prohibition from exercising the simplified due diligence
EUDR Timeline
EUDR Compliance Challenges
Supply chain data collection and verification
1. Collecting and verifing first-mile data to demostrate EUDR Compliace.
2. Geolocation of all involved plots and data accuracy satellite verification.
Supply chain traceability
1. Supply chain end-to-end traceability is needed in order to link imported lots to farmer’s plots.
2. Collection of legal compliance data in supply chain countries.
Ongoing monitoring
1. Continuous satellite monitoring of fields deforestation status, with real-time data correction. 2. Annual review of non EUDR compliance risk assessment and mitigation.
Due Diligence Statement on EU portal
1. Conducting Due Diligence including all necessary information, risk assessment and risk mitigation measures for non-compliance. 2. Uploading Due Diligence Statement on EU portal