How the EU Deforestation Regulation will reshape your supply chain in 2024

05/01/2024

What is EUDR?

The EU Deforestation Regulation (EUDR) is a legislative measure by the European Union, specifically Regulation (EU) 2023/1115, designed to reduce the impact of EU consumption on global deforestation and forest degradation. It targets key commodities such as cattle, cocoa, coffee, palm oil, soy, wood, and rubber—both as raw materials and derived products—ensuring they are sourced from non-deforested land as of December 31, 2020.

Who are Regulated Entities
The regulation impacts any operator or trader who places the covered commodities or their products on the EU market or exports them from the EU. This includes all members of the supply chain from producers to retailers. Importantly, companies operating in the EU need to be prepared to comply with its requirements by December 30, 2024.

How to Solve Compliance Challenges
To comply with the EUDR, affected parties must implement a robust due diligence system. This system involves assessing deforestation risks within the supply chain, collecting supplier data, implementing risk mitigation strategies, and maintaining detailed records of all efforts to prevent sourcing from deforested areas.

Role of FSC COC Certification
While FSC COC Certification supports due diligence by verifying that wood products come from responsibly managed forests, it does not fully meet all the EUDR requirements, such as tracing the origin back to the exact forest. Therefore, it should be part of a broader compliance strategy rather than a sole solution.

Due Diligence System
The due diligence system required under the EUDR includes several components: risk assessment to identify high-deforestation areas, information gathering on supplier practices (including compliance and origin), risk mitigation strategies, and comprehensive monitoring and record-keeping of all due diligence activities.

Solution
Navigating the complexities of the EUDR can be challenging. Our consultancy can assist you in setting up the necessary due diligence framework, ensuring your supply chain complies with these new regulations efficiently and effectively. Contact us to learn how we can help your business adapt to these important changes.

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