EU Deforestation Regulation (EUDR) & Supply Chains

EU Deforestation Regulation (EUDR) – At a Glance

What Is the EUDR?

The EUDR is a major regulatory initiative from the European Union aimed at:

• Reducing the EU’s contribution to global deforestation.

• Promoting sustainable, transparent, and traceable supply chains.

• Ensuring products placed on or exported from the EU market are deforestation-free and legally produced.

Commodities Covered

The regulation applies to seven key commodities and their derived products:

1. Cattle – meat, leather

2. Cocoa – beans, paste, butter, chocolate

3. Coffee – all forms

4. Oil Palm – palm oil, derivatives (glycerol, fatty acids)

5. Rubber – natural rubber, tires, rubber clothing

6. Soya – beans, meal, oil, residues

7. Wood – logs, furniture, paper, packaging

Key Timeline

• June 29, 2023: Regulation adopted

• December 30, 2025: Enforcement begins for most businesses

• June 30, 2026: Compliance deadline for micro and small enterprises

• 2026–2028: EC review and possible adjustments

Core Compliance Requirements

Companies must maintain 5+ years of data including:

• Product details (type, trade name, scientific name for wood)

• Quantity (net weight, units)

• Country and region of origin

• Geolocation (exact GPS coordinates of production sites)

• Supply chain contacts (supplier and buyer details)

• Deforestation-free assurance and legal compliance proof

Risk Categorization System

Regions are classified as:

• High Risk – Strong likelihood of non-compliance

• Standard Risk – Default level

• Low Risk – Minimal risk of deforestation

Companies sourcing from high-risk regions face stricter due diligence, while low-risk sourcing allows streamlined processes.

Who Is Responsible?

Entity Type	Key Responsibilities
Economic Operators	Full due diligence, traceability, compliance, submit reports
Large Traders	Conduct due diligence, maintain records, collaborate with authorities
SME Traders	Maintain records, report issues, cooperate upon request

Penalties for Non-Compliance

• Fines up to 4% of EU annual turnover

• Confiscation of goods

• Temporary bans from EU funding and public tenders

How Freyr Can Help

Freyr provides end-to-end EUDR compliance support, including:

• Due Diligence System Design & Training

• Risk Assessment & Mitigation

• Compliance Reporting & Documentation

• Regulatory Monitoring & Team Training

Freyr’s tailored services aim to ease the burden of compliance while aligning with your sustainability goals.

Conclusion

The EUDR represents a paradigm shift in sustainability governance. Companies must act now to:

• Reassess sourcing strategies

• Upgrade data and traceability systems

• Train internal teams on regulatory duties

Partnering with experts like Freyr can ease this transition, ensuring compliance while strengthening your brand’s commitment to ethical and sustainable sourcing.