Preparing for the EU Deforestation Regulation
The EU Deforestation Regulation (EUDR) requires companies to prove that their supply chains are not linked to deforestation or forest degradation. It applies to organisations placing certain commodities and derived products on the EU market. For many organisations this is not primarily a legal challenge. It is an operational supply chain data challenge. Companies must collect traceability information from suppliers, assess risks, and submit a Due Diligence Statement through the EU’s TRACES system before products can be placed on the market.
Scope and objective
What is the EU Deforestation Regulation?
The EU Deforestation Regulation builds on the EU Timber Regulation (EUTR) but significantly extends its scope. It applies to a broader set of commodities and products derived from them, including: wood, rubber, soy, palm oil, coffee, cocoa and cattle.
The objective is clear. Companies must be able to trace these commodities back to the land where they were produced and demonstrate that this production did not contribute to deforestation or forest degradation. This requires clear traceability across the supply chain.
Regulatory deadlines
Implementation timeline
The implementation timeline for EUDR is approaching quickly. Large enterprises must comply by 31 December 2026. Small and medium-sized enterprises must comply by 30 June 2027. Although these dates may appear distant, the operational preparation required is significant. Supply chain alignment, data collection and process changes take time. Many large retailers and brand owners have already started preparing their organisations and supply chains. Smaller organisations must now do the same to avoid delays in compliance.
Where EUDR affects your organisation
Operational impact assessment - ProductIP PAWS
To understand the practical implications of new regulations, we analyse them using the ProductIP PAWS framework. PAWS identifies where legislation impacts operations by looking at four areas:
- Product
- Artwork
- Workflow
- Supply Chain
This method helps organisations quickly determine where operational changes will occur and which teams inside the organisation must be involved. Regulations rarely change products. They disrupt processes.
Product
In most cases, EUDR does not directly change the product itself. The regulation does not introduce new material restrictions comparable to chemical legislation. However, products may be affected indirectly if suppliers cannot demonstrate that commodities originate from compliant supply chains. In those cases companies may need to replace suppliers or restructure sourcing.
Artwork
EUDR can affect how environmental claims and certifications are used in communication. Many organisations combine EUDR compliance with certification schemes such as FSC, PEFC, AMFORI or SA8000. These schemes introduce their own requirements, including licensing, audits and usage conditions. Marketing and compliance teams must work together to ensure that claims are accurate and supported by evidence.
Workflow
EUDR introduces a structured due diligence process. Before placing products on the EU market, companies must collect supply chain information, assess risks and take mitigation measures where needed. This results in a Due Diligence Statement that must be submitted through the EU TRACES system. Without a valid statement, products cannot be placed on the market. This creates a new compliance checkpoint in the product release process.
Supply Chain
The largest impact of EUDR is in the supply chain. Companies must collect detailed information from suppliers, including identification data, geolocation coordinates of production plots, traceability information, risk assessments and mitigation documentation. This often requires engaging deeper tiers of suppliers and updating agreements to ensure cooperation and data availability.
From documents to structured data
The real challenge: supply chain data
EUDR exposes a structural issue in many organisations. Supply chain compliance information is often scattered across purchasing systems, supplier documentation, spreadsheets and email exchanges. Managing this information manually becomes difficult when organisations work with hundreds of suppliers and thousands of products.
Structured supply chain compliance
Why ProductIP for EUDR compliance
ProductIP helps organisations structure and manage compliance data across their supply chains. Companies use ProductIP to:
- Collect supplier information through structured workflows.
- Organise product compliance documentation.
- Manage traceability across product portfolios.
- Maintain structured technical files for regulatory compliance.
One example is Verifeyer, a smart form mechanism used to collect regulatory information and documentation from supply chain partners. Verifeyer guides suppliers step-by-step through relevant questions, allowing them to provide structured answers and upload supporting evidence. This helps organisations gather compliance information in a consistent format while maintaining oversight of the progress across their supplier network.
Once the required information is collected and verified, it can support the creation of the Due Diligence Statement required for submission to TRACES. By structuring supply chain data and documentation, organisations can manage compliance more efficiently and maintain oversight across complex product portfolios.
For a deeper explanation of the regulation itself, visit our regulatory knowledge base:
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Ready to prepare for EUDR compliance?
EUDR introduces a complex compliance dossier. But with structured processes and cooperation across the supply chain, it becomes manageable. What matters most is starting early and building the systems needed to collect and manage the required information.
