What is the European Union Deforestation-free products Regulation?
The EU Deforestation Regulation (EUDR) will come into effect on the 31st of December 2026. According to the Regulation, companies (operators) that first place EUDR commodities/products on the EU market must demonstrate that their products are not sourced from land that was recently deforested illegally or has suffered forest degradation, and that the sourcing process does not violate local regulations. First-in-line operators must collect and publish a Due Diligence Statement which shows that the sourcing and trading of the commodities are in line with the EUDR requirements. Depending on the country of origin, different requirements must be met within the DDS.
Three requirements for your due diligence statement:
1) Information acquisition
First, operators must gather key information on products placed on or exported from the EU market. This includes the trade name, type, description of relevant commodities (e.g., wood species), quantity, country of production, and precise geolocation of production areas with timeframes. Operators must also record supplier and buyer contact details and provide verifiable proof of deforestation-free sourcing and legal compliance.
2) Risk assessment
EUDR risk assessment requires evaluating the country of production, forest presence, indigenous rights, deforestation trends, and supply chain complexity. Operators must assess document reliability, legal compliance, and risks like corruption, conflict, or data falsification. They should also check for mixing of unknown-origin products and consider any substantiated concerns or regulatory guidance pointing to potential non-compliance.
3) Risk mitigation strategy
If the risk assessment reveals anything other than low or negligible risk, operators must take mitigation steps. These may include independent audits or additional checks based on earlier information. Operators are required to establish appropriate policies and controls to manage risks—such as record-keeping, internal oversight, and compliance systems.
Who does it apply to?
The EU Deforestation Regulation (EUDR) applies to operators and traders involved in placing relevant commodities—such as cattle, cocoa, coffee, palm oil, rubber, soy, and wood—and their derived products on the EU market. First-in-line operators will be responsible for commencing the DDS and filing it in the Information System of the EU. All other operators and traders will have to file a list of suppliers and be able to trace the products back to the original first-in-line operator.
How can we help?
At Intire, we are committed to creating a positive environmental impact by helping businesses conduct their DDS. Given the complexity of the process, we support you throughout all three phases—information gathering, risk assessment, and risk mitigation—to identify non-compliance or confirm compliance of relevant products.
Besides the EUDR, other regulations like EUFLR and SBTi also require companies to investigate their supply chain. With our broad expertise, we support companies with the integration of their supply chain for reporting and strategic purposes.
We also offer specialized services such as human and labour rights assessments, stakeholder mapping and engagement, human rights risk analysis, remedy mechanisms, and the design and facilitation of Free, Prior and Informed Consent (FPIC) processes. These can be fully integrated into each due diligence phase.
