“Sustainability in Action” Series

By P. Batziaki

The European Union Deforestation Regulation (EUDR) introduces stringent requirements for businesses that trade in commodities linked to deforestation. Industries dealing with soy, palm oil, beef, coffee, wood, and rubber must now prove that their supply chains are free from deforestation and comply with EU sustainability standards.

To ensure compliance, businesses must conduct due diligence, tracing the origins of raw materials and verifying that they do not come from deforested areas. This process involves geolocation tracking, supplier assessments, and certification schemes. Companies must also maintain detailed records to demonstrate compliance in case of audits.

Non-compliance can lead to significant penalties, including fines and restrictions on market access. For businesses operating in affected sectors, adopting transparent supply chain practices is crucial. Partnering with certified suppliers, using blockchain for traceability, and investing in sustainable sourcing programs will be essential for meeting EUDR requirements.

While the regulation presents challenges, it also offers opportunities. Companies that proactively adapt will enhance their reputation, strengthen their market position, and gain consumer trust. The transition to deforestation-free supply chains not only aligns with regulatory demands but also contributes to global conservation efforts.

Next Steps & How We Can Help

The EUDR is reshaping global supply chains, requiring businesses to ensure their commodities are deforestation-free. Compliance involves extensive due diligence, traceability systems, and supplier verification.

We assist companies in mapping their supply chains, implementing traceability solutions, and securing the necessary documentation to meet EUDR requirements. Through supplier engagement programs and risk assessments, we help businesses proactively adapt, avoiding penalties while maintaining ethical sourcing practices.