EUDR: The EU Deforestation Regulation
Keeping deforestation out of our supply chain
In a significant move to combat deforestation and forest degradation, companies trading in commodities such as cattle, cocoa, coffee, oil palm, rubber, soy, and wood, along with products derived from these, are mandated to adhere to rigorous due diligence within the supply chain.
The scope of this new regulation is therefore very large and influences a large amount of industries. This requirement ensures that the goods do not stem from deforestation, forest degradation, or breaches of local environmental and social laws post-December 31, 2020.
The EU Deforestation Regulation (EUDR) is a part of the EU’s broader environmental and social sustainability goals, put in place to protect wildlife and the future of our forests.
The Advantages of our EUDR module
The Deforestation Module
The EUDR demands strict control and monitoring measures to ensure the safety of the world’s forests and wildlife. It is not just in every organization’s best interest to uphold these standards for the sake of the planet and the protection of wildlife and human rights, but also to avoid penalties and reputational damage to the organization.
For that, Compliance Solutions has developed a Module that can be integrated into the already existing Supply Chain Compliance System we offer to make upholding these values as easy and as diligent as possible.
Simple implementation
of the Deforestation Regulation
Legally secure
compliance with all
requirements
Rapid implementation
of the LkSG software
AI-supported, automated
& resource-efficient
Risk management
& risk analysis
Simple implementation of the Deforestation Regulation
Legally secure compliance with all requirements
Rapid implementation of the LkSG software
AI-supported, automated & resource-efficient
Risk Management & Risk Analysis
The New Workflow of the Supply Chain Compliance System
Integrating the new EUDR-Module into the Supply Chain Compliance System
Compliance Solutions offers a workflow-driven, fully risk-based solution for supply chain compliance. This includes an automated, AI-supported risk calculation and a comprehensive screening on supply chain-relevant and corruption-relevant topics.
The European Deforestation Regulation is seamlessly worked into the already existing workflow, ensuring that these new standards are enforced diligently. That is possible through Compliance Solutions’ adaptable systems, that can be individually customized for any demand. It is possible for every customer to stay safe and compliant with the EUDR when choosing Compliance Solutions Supply Chain Compliance Software.
What to Expect
Regulation Timeline and Scope
- June 29, 2023: EU Deforestation Regulation comes into force
(it applies to all goods produced on and after June 29 2023, with the exception of timber and timber products) - December 30, 2024: Enforcing EUDR
(products that violate this regulation in EU markets, or trading them within the EU, will be strictly prohibited) - December 31, 2027: EUDR also comes into force for timber and timber products
Enforcement and Penalties
Protecting the EU Deforestation Regulations Integrity
Member states are tasked with enforcing the EU Deforestation Regulation (EUDR) through regular, often unannounced checks, with the authority to demand immediate remedial actions for non-compliance risks. Companies must submit a due diligence report before placing their product on the market, thereby assuming responsibility for compliance under penalty threats. Penalties for non-compliance include:
- fines up to 4% of the company’s EU turnover from the preceding year
- confiscation of non-compliant products
- temporary exclusion from public procurement processes and public funding
- a temporary ban on dealing with those items in the EU
Private parties also have the right to raise concerns and act as whistleblowers if necessary.
Compliance and Due Diligence
How the EU Deforestation Regulation Protects Wildlife
Companies are obligated to provide a due diligence statement, demonstrating that there is no more than a negligible risk of non-compliance with the regulation.
In these statements, they have to provide evidence that their products are deforestation-free. That term refers to products, not produced on land that was converted from natural forest to agricultural use post-December 31, 2020.
Additionally, products derived from or involving wood must not contribute to forest degradation, a process, that entails the conversion of naturally regenerating forests into plantation forests or other wooded land used for agriculture.
Through that, the EU hopes to preserve the world’s natural forests and to protect essential biodiversity from harmful industries.
Legal and Illegal Practices
Redefining Global Standards
The EU Deforestation Regulation (EUDR) targets not only illegal activities such as unauthorized logging but also processes that are considered legal in the countries where the products are produced.
A large part of international deforestation is technically legal under local laws, which made regulation difficult in the past. Now, if a company wants to place their products in EU markets, they have to comply with EU regulations, regardless of how the law stands in the country of production.
But it also mandates compliance with local social and environmental laws in the areas of production, placing the onus on companies introducing products into the EU market to ensure adherence to these rules.
Legal and Illegal Practices
Redefining Global Standards
The EU Deforestation Regulation (EUDR) targets not only illegal activities such as unauthorized logging but also processes that are considered legal in the countries where the products are produced.
A large part of international deforestation is technically legal under local laws, which made regulation difficult in the past. Now, if a company wants to place their products in EU markets, they have to comply with EU regulations, regardless of how the law stands in the country of production.
But it also mandates compliance with local social and environmental laws in the areas of production, placing the onus on companies introducing products into the EU market to ensure adherence to these rules.
INITIAL CONSULTATION & PRODUCT DEMONSTRATION
How can we support you?
Are you interested in our EUDR module or our supply chain compliance system? Please write to us, our compliance experts will be happy to advise you.
Are you interested in our EUDR module or our supply chain compliance system? Please use our contact form. Our compliance experts will be happy to advise you.
