EUDR-compliant Supply Chain Transparency

EUDR-compliant supply chain transparency ensures the traceability of raw materials and products according to EU regulations.

EUDR-compliant supply chain transparency refers to the complete and traceable tracking of raw materials and products within the supply chain that meets the requirements of the EU Deforestation Regulation (EUDR). This regulation came into effect in June 2023 and aims to prevent deforestation and forest degradation through the import and trade of certain goods in the EU. Affected products include soy, palm oil, beef, coffee, cocoa, wood, and rubber. Companies are required to ensure that these goods do not originate from areas that have been deforested or degraded after December 31, 2020.

To ensure EUDR-compliant supply chain transparency, companies must accurately capture geolocation data of agricultural areas and document that the respective areas comply with legal requirements. This includes conducting risk analyses, evaluating countries of origin and suppliers, as well as implementing risk mitigation measures. The required information must be documented digitally and retained for at least five years.

The active involvement of the supply chain is essential, as only suppliers can provide the necessary data. Companies should inform their suppliers early about the EUDR requirements and support them to ensure a smooth flow of information. Overall, EUDR-compliant supply chain transparency not only enables compliance with legal provisions but also contributes to enhancing sustainability and responsible sourcing in business practices.