The EU Deforestation Regulation (EUDR) is reshaping global supply chains. Are you ready for the new requirements? From cocoa to coffee, and wood to palm oil, ensuring your products are deforestation-free is now a legal obligation. This guide covers the latest updates and answers your most pressing questions about the EUDR and relevant EUDR Tool.
The implementation timeline for the EUDR has been adjusted to provide businesses and authorities with more time to prepare. The new deadlines are:
1) For large companies: The regulation becomes fully applicable on December 30, 2025.
2) For micro and small enterprises (SMEs): You have a longer grace period, with the deadline set for June 30, 2026.
These changes give you a critical window to implement a robust due diligence system. Don’t wait—the clock is ticking!
The regulation targets seven key commodities and a wide range of derived products:
a) Cattle (including beef and leather)
b) Cocoa (and chocolate)
c) Coffee
d) Oil Palm (and palm oil)
e) Rubber
f) Soy
g) Wood (including furniture and paper)
If your business places any of these products on the EU market or exports them, you are affected.
The EUDR places obligations on two main groups:
Operators: These are companies that first place the covered commodities or products on the EU market, or export them. They bear the full responsibility for conducting due diligence.
Traders: These are other companies in the supply chain. Large traders have the same obligations as operators, while SME traders have simplified requirements and can rely on the due diligence statements of their suppliers.
A DDS is a mandatory electronic declaration that must be submitted via the EU’s Information System (TRACES) for each shipment. It’s your official proof that you’ve conducted due diligence and that the products carry a “negligible risk” of being linked to deforestation. The DDS requires detailed information, including geolocation data of the production plots. With the right EUDR Tool you can achieve compliance in a short time.
To be compliant, you must:
a. Information Gathering: Collect comprehensive data, including geolocation coordinates of the land plots where the commodities were produced.
b. Risk Assessment: Analyze the collected data to determine if there is a risk of deforestation or illegality. The EU is also introducing a country benchmarking system to classify countries by risk level (high, standard, or low).
c. Risk Mitigation: Take action to reduce any identified risks, such as obtaining additional information or engaging with your suppliers.
Non-compliance can lead to severe penalties, including hefty fines of up to 4% of your annual EU turnover, confiscation of goods, and even exclusion from public tenders.
Navigating these new regulations can be complex. Manual processes involving spreadsheets and scattered data are not only time-consuming but also increase the risk of errors and non-compliance.
Our state-of-the-art EUDR Tool is designed to streamline your entire due diligence process.
With our EUDR Tool, you can:
Automate Data Collection: Effortlessly gather and centralize supplier information, geolocation data, and product details.
Conduct AI-Powered Risk Assessments: Our platform analyzes your supply chain against key risk indicators, including satellite data, to provide real-time risk scores.
Generate and Submit Due Diligence Statements: Create audit-ready DDS documents and seamlessly submit them to the EU’s TRACES system with a single click.
Ensure End-to-End Traceability: Trace every product back to its origin plot, providing the transparency and accountability required by the EUDR.
Don’t let EUDR compliance be a burden. Our EUDR Tool provides the solution to automate your due diligence, reduce administrative work, and secure your place in the EU market.
DISS-CO’s cutting-edge AI platform provides a comprehensive suite of tools for vendor due diligence and complaint management, specifically focusing on maximizing sustainability within your supply chain:
1. Automated Risk Detection for Sustainable Supply Chains: Our AI algorithms analyze vast quantities of data to identify potential red flags related to ethical sourcing, environmental practices, and social responsibility throughout your vendor network.
2. ESG (Environmental, Social, and Governance) Compliance Assessments: DISS-CO helps ensure your suppliers adhere to ESG best practices, promoting a responsible sustainable supply chain.
3. Real-Time Monitoring: Continuously monitor your sustainable supply chain with DISS-CO’s AI-powered platform. Stay updated on emerging risks and trends, allowing for swift action to maintain sustainability.
By leveraging AI-powered risk assessment tools like DISS-CO´s, businesses can reap a multitude of benefits, leading to a more sustainable supply chain and a greener future:
