EUDR compliance: Your path to deforestation-free supply chains

EU Deforestation Regulation (EUDR) - what you need to know now: From 2025, anyone importing raw materials such as soya, palm oil, wood, beef, cocoa, coffee or rubber will have to prove that these do not originate from deforested areas. Find out here which deadlines apply and what companies can do to be well prepared.

Who is affected by the EUDR? 

The EU Deforestation Regulation (EUDR) came into force on 29 June 2023 and obliges companies to ensure deforestation-free supply chains. The aim is to prevent the placement on the market, the provision on the Union market and the export of products that are associated with deforestation or forest degradation. Who is affected and what are the obligations for companies in Germany and Europe?

Deadlines for the implementation

• Large and medium-sized companies (>250 employees or >EUR 50 million turnover or EUR 25 million balance sheet total) must fully implement the regulations from 30 December 2025.
• Micro and small companies have until 30 June 2026 to complete their compliance measures.

Key obligations for companies

To prove that their supply chains are deforestation-free, companies must implement the following measures:

1. Geolocalisation and traceability
   • Geocoordinates as proof of origin for all relevant raw materials
   • Complete traceability back to the agricultural area or plantation
2. Risk assessment and risk mitigation
   • Analysis of deforestation risk within the supply chain
   • Measures such as audits, satellite monitoring, certificates 
3. Due diligence declaration
   • Companies must submit a formal declaration confirming their compliance with the EUDR 
   • Without this declaration, import or export is not permitted in the EU

Micro and small enterprises are subject to simplified obligations under the EU Deforestation Regulation (EUDR). For instance, they are not required to conduct their own due diligence if this has already been carried out by an upstream operator. They are also exempt from annual reporting and do not have to implement specific internal procedures to minimise risks. However, these simplifications only apply under certain conditions and do not constitute a complete exemption from responsibility.

Categorisation of the risk countries

• Low risk: 140 countries, including all EU Member States, the USA, Canada, China and Australia.
• High risk: Belarus, Myanmar, North Korea and Russia.
• Standard risk: All other countries that have not been explicitly categorised as low or high risk.

This categorisation influences the due diligence obligations of companies and the frequency of official inspections. Simplified requirements apply to imports from low-risk countries, while products from high-risk countries are subject to stricter checks.

Consequences of violations

• Fines of at least 4% of annual turnover
• Confiscation of non-compliant products
• Exclusion from public tenders

How companies can be prepared 

1. Identify products and raw materials: Determine whether your products or raw materials are covered by the EUDR, e.g. wood, beef, palm oil, soya, cocoa, coffee or rubber.
2. Analyse your supply chain: Check your supply chain for transparency and traceability back to the cultivation area.
3. Collect geodata: Collect precise geolocalisation data of production sites to prove that they are deforestation-free.
4. Carry out a risk assessment: Evaluate potential risks in your supply chain and implement mitigation measures.
5. Involve suppliers: Train your suppliers on EUDR requirements and promote their compliance.
6. Utilise compliance systems: Implement digital tools to assist with data management, risk assessment and reporting.

Conclusion

The EUDR presents companies with new challenges, but also opens up opportunities. Those who act early and implement due diligence obligations minimise risks and gain a competitive advantage. Now is the right time to set up a sustainable supply chain.

Our offer: Would you like to know whether your company is covered by the EU Deforestation Regulation or do you need support with its implementation? Contact us - we will help you to fulfil the new requirements efficiently.

• EU Deforestation Regulation 
• Implementation portal for the EUDR
• Country Classification List – European Commission

Text: Daria Ezhkova