What Does the EUDR Mean for Companies?

The EU Deforestation Regulation (EUDR) is a European law that requires companies to ensure that the products they place on the European market or export do not contribute to deforestation or forest degradation.

Stijn, What Exactly Is the EUDR?

Stijn Dhondt:
The EU Deforestation Regulation (EUDR) is a European law designed to prevent products sold or exported by companies from contributing to deforestation or forest degradation. This regulation aligns with the EU’s ambition to reduce the impact of European consumption on global forests and support climate and biodiversity goals. The EUDR introduces strict requirements for businesses, making them accountable for full traceability within their supply chains.

Which Products Fall Under the EUDR?

Stijn Dhondt:
The regulation applies to products associated with a high risk of deforestation, including:

• Wood

• Soy

• Palm oil

• Cocoa

• Coffee

• Beef

• Rubber

Additionally, derived products such as paper, leather, and certain food products also fall under the regulation.

The EUDR Has Been Delayed Until December 2025. What Does This Mean for Companies?

Stijn Dhondt:
This delay gives businesses extra time to properly prepare for the regulation’s implementation. However, this does not mean they should wait. The requirements remain strict, and companies should already begin analyzing their supply chains and implementing the necessary due diligence processes to ensure compliance once the law takes effect.

What Is the Purpose of the EUDR?

Stijn Dhondt:
The new rules aim to:

• Ensure that products consumed in Europe do not contribute to deforestation or forest degradation, both within the EU and globally.

• Reduce CO₂ emissions caused by EU consumption and production of the regulated commodities by at least 32 million tons per year.

• Eliminate deforestation caused by agricultural expansion for the production of the regulated commodities, as well as address forest degradation.

Why Is the EUDR Important for Companies?

Stijn Dhondt:
The EUDR is more than just a legal requirement—it presents an opportunity for companies to strengthen their sustainability strategy and future-proof their operations.

Transparency in supply chains is no longer a "nice-to-have", but an absolute necessity.

Complying with the EUDR offers several advantages:

• Enhanced reputation among customers and investors.

• Better risk management and regulatory compliance, preventing fines and trade restrictions.

• Increased access to sustainable investments.

How Can Companies Prepare for the EUDR?
Stijn Dhondt:
The first step is mapping out the entire supply chain and identifying potential risks. Businesses must implement systems that ensure full transparency and traceability.

Seeking expert guidance—such as the support we provide at Sustinera—can help companies develop a solid action plan and establish effective compliance processes.

Where Can Companies Find More Information About the EUDR?

Stijn Dhondt:
More details about the EUDR are available on the official European Commission website.
At Sustinera, we provide practical guidance and strategic advice to help companies meet compliance requirements on time.