What is EUDR?

EUDR is a regulation set up by the EU to ensure that products from certain commodities consumed in the EU market do not contribute to deforestation or forest degradation anywhere in the world.

EUDR Regulation (EU) 2023/1115 on deforestation-free products targets key commodities linked to deforestation including palm oil, soy, cattle, coffee, cocoa, rubber, and wood. These products are widely used in various industries, from food and cosmetics to furniture and biofuels.

By promoting the consumption of ‘deforestation-free’ products and reducing the EU’s impact on global deforestation and forest degradation, the EU wants to bring down greenhouse gas emissions and biodiversity loss.

The regulation becomes applicable on 30th December 2024 and applies to companies placing these commodities, or products thereof on the EU market, or exporting them from it. These companies need to demonstrate that their products are deforestation-free, and not linked to forest degradation, nor illegal harvesting and trade by establishing a Due Diligence system.

EUDR Due Diligence

The EUDR introduces a due diligence system that obligates companies to take active steps in ensuring compliance with the regulation. The due diligence process is multifaceted and involves several key steps:

1. Gathering information: Companies are required to trace their products back to the origin and demonstrate the exact supply chain actors the products go through. This involves gathering detailed information on the commodities, including the exact geographic location where they were produced. Geolocation data is crucial for verifying that the land has not been subject to recent deforestation.
2. Risk Assessment: Companies must assess the risk of deforestation and illegal activities in their supply chains covering various requirements the EUDR has set out.
3. Risk Mitigation: If a company identifies a risk of deforestation or illegality, it must implement mitigation measures. This could involve sourcing from different suppliers, engaging in more thorough audits, or investing in more sustainable agricultural practices.
4. Reporting and Transparency: Companies are required to maintain transparent records of their due diligence activities and report them to the relevant authorities. The EUDR mandates that companies provide accurate and verifiable information to demonstrate their compliance, promoting transparency and accountability in global supply chains.
5. Penalties for Non-Compliance: The EUDR imposes significant penalties for non-compliance. Companies found to be in violation of the regulation may face fines, bans from the EU market, and other enforcement actions. This strict enforcement mechanism underscores the EU's commitment to ensuring that the regulation has real-world impacts.

EUDR Services

EUDR sets a high bar for environmental and legal compliance, it also presents significant challenges for businesses that need to understand and implement the EUDR Due Diligence requirements.

At Certain, we are experts in regulatory compliance and specialize in developing and drafting risk assessments tailored to your enterprise and your needs. We have vast experience collaborating with all types and sizes of companies and, more important, with the competent authorities.

We also offer different services in the field of EUDR to help you navigate its intricacies, ensuring that your products meet the necessary standard and that your operations remain fully compliant. We help with the preparation and maintenance of your DDS, the risk assessment/risk mitigation and we review your existing Due Diligence System or Risk analyses. 

With Certain, you can ensure that your company contributes cost-effectively to sustainable forest and wood management in full compliance with the existing regulations. 

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