EUDR Compliance – What to do.
Our guide to EUDR compliance
In view of pressing global environmental problems, the European Union has taken a bold step with the introduction of the EU Deforestation Regulation (EUDR). This regulation will change the trade and industry landscape by enforcing sustainable practices. This article looks at the EUDR, its objectives, its scope and its profound impact on businesses inside and outside the EU.
Of course, we won’t leave you on your own: we will show you how you and your company can meet these new challenges. Ventum Consulting supports you in the jungle of regulations and offers you the necessary expertise and solutions to not only be compliant, but also to stand out from the competition.
What is the EUDR framework?
The EU Deforestation Regulation (EUDR) is an important step towards environmental protection and sustainable trade practices. In both private Essentially the EUDR ensures that products entering the EU market do not contribute to deforestation or forest degradation. This regulation obliges market participants to provide a comprehensive Due diligence system in order to guaranteethat their products are deforestation-free and comply with the laws of the country of origin.
Important change: EUDR postponed by one year
The implementation of the EUDR law (European Union Deforestation Regulation) has been officially postponed by 12 months.
The start of application has been postponed to the following days:
- Large and medium-sized enterprises: Start on December 30, 2025
- Micro and small enterprises: Start on June 30, 2026
To the official press release.
Why you should still act now:
The postponement does not mean that preparation for the regulation should be postponed. Rather, it offers a valuable opportunity to test processes and fully comply with all requirements. Companies that start now secure a head start and are already on a secure footing when the regulation comes into force.
EUDR Maturity Assessment Checklist
The new EU Deforestation Regulation (EUDR) is a significant step towards more sustainable supply chains. Our maturity assessment check will help you understand the key requirements of the regulation and find out how well prepared your company is for the start of its application.
Which companies are affected by CBAM?
The EUDR affects a wide range of companies involved in the import or export of products within the EU. It applies to large multinational corporations, SMEs and even smaller traders if their business activities involve goods or products that are associated with a deforestation risk.
It is not limited to producers of raw materials, but also applies to companies that trade in potentially deforestation-relevant goods such as food, wood and certain biofuels. The regulation emphasizes transparency and accountability at all levels of the supply chain and makes compliance a general obligation for companies operating in the EU market.
Which product groups are affected by the EUDR?
The EUDR specifically targets goods and raw materials with a high risk of deforestation. These include palm oil, soy, wood, coffee, rubber and cocoa, as well as products made from them, such as chocolate and furniture. The scope of the regulation also covers commodities that do not directly originate from forests but have a significant impact on land use and can potentially contribute to deforestation and forest degradation.
EUDR compliance challenges and implications for companies
Compliance with the EUDR is a complex challenge for companies. The demand for a detailed due diligence process requires a deep understanding and absolute transparency in the supply chain from source to sale. European market participants must collect and keep available comprehensive data and information, carry out risk assessments and take corrective action to mitigate identified risks. In order to ensure compliance with the regulations over time, market participants face a wide variety of challenges that need to be overcome:
Companies are obliged to submit a comprehensive due diligence declaration in accordance with the EUDR before importing goods into the EU. This must be done before the goods pass through customs. The aim of these due diligence obligations is for companies to take responsibility for ensuring and proving that their products fully comply with the requirements of the EUDR.
The biggest challenge is therefore the timely collection and verification of data from suppliers in order to demonstrate compliance with EU regulations. This requires early and precise coordination with suppliers as well as effective data management. Failure to do so can lead to serious delays in customs clearance or sanctions.
Companies operating on the global market in particular are often faced with the challenge of monitoring complex supply chains with a wide variety of players. In particular, different standards and guidelines that influence operational processes increase the difficulty of complying with due diligence obligations. However, the EUDR makes it necessary to monitor the entire supply chain and ensure that no illegal or non-compliant products enter the domestic market.
This increases the complexity for companies enormously, as they have to fulfill complex obligations, collect evidence of the origin of raw materials and also guarantee compliance with legal regulations and environmental and social standards. An error in any of these steps can have significant legal and financial consequences for companies.
The EUDR requires companies to ensure that their suppliers have not engaged in deforestation or forest degradation on their land since the cut-off date for deforestation and forest degradation (December 31, 2020).
This requires regular checks for environmentally harmful practices. As a solution for implementation, technologies such as satellite imagery or remote sensing systems will be used to facilitate monitoring. In addition, companies must have independent audits or on-site inspections carried out to verify the information and ensure compliance.
As these measures are both costly and resource-intensive, they require a structured approach and expertise in the area of EUDR compliance.
Internationally operating companies with extensive and complex supply chains in particular face the challenge of checking all their suppliers for compliance with EUDR regulations. Many companies work with a large number of suppliers, often in different countries and regions, who all have their own processes, documentation and compliance standards.
The EUDR requires comprehensive due diligence to verify all relevant information about a company and its products. For EUDR compliance, this means that companies must be able to collect and analyze detailed data for each supplier and confirm compliance with a deforestation-free supply chain.
With a large number of suppliers, companies quickly reach their capacity limits due to a lack of human, financial and technological resources to carry out these checks effectively and regularly. This can lead to delayed or incomplete inspections, which in turn increases the risk of bringing non-compliant products to market and thus risking sanctions. Companies must therefore make strategic decisions on how to prioritize their resources, optimize their supplier selection and potentially reduce their supplier base to ensure compliance.
Timetable for the implementation of the EUDR
In December 2020, the EU agreed on the Deforestation Regulation. On June 29, 2023, it officially came into force. For non-SMEs, the transition period ends on December 30, 2025, after which full compliance is required. SMEs have a slightly longer deadline until the June 30, 2026. At that time, the EU will also assess the impact of the EUDR and consider proposals to extend its scope.
Companies need to integrate these timelines into their strategic planning to ensure a smooth transition to full EUDR compliance. Ventum Consulting can provide the necessary support and tools to ensure that companies not only comply with regulations during the transition period, but also take the opportunity to strengthen their commitment to sustainable business practices.
Ventum Consulting: Your EUDR Navigator
Ventum Consulting is your reliable partner for overcoming the challenges of the EUDR. We take a holistic approach that combines a deep understanding of your business processes with our extensive expertise in supply chain management, technology-based solutions and effective implementation strategies.
Our methodology aims to seamlessly integrate the EUDR into your existing business processes while ensuring environmental, economic and legal compliance. Through our technology-based solutions and our deep understanding of sustainable supply chain management, we enable your company not only to meet legal requirements, but also to develop long-term competitive advantages. We support you in minimizing risks while maximizing the transparency and sustainability of your supply chains.
EUDR compliance services from Ventum Consulting
To lay the foundation for EUDR compliance, Ventum Consulting first conducts a thorough analysis of the existing data and processes. The aim of this status quo analysis is to identify gaps in data collection and management. We check the completeness and accuracy of the data collected on the supply chain and ensure that all relevant information on the origin and production of the goods is available. This is the first and crucial step in identifying potential risks and vulnerabilities that could jeopardize compliance with the EUDR.
Once the data situation and existing gaps have been clearly defined, Ventum Consulting supports your company in developing a customized strategy for EUDR compliance. This includes integrating EUDR requirements into existing corporate strategies as well as advising on the planning and implementation of necessary adjustments. Our interdisciplinary team of sustainability and compliance experts offers not only legal advice, but also strategic impulses to strengthen your supply chain against environmental risks and to comply with international standards.
In this phase, the focus is on the practical implementation of the strategies and measures developed. Ventum Consulting works closely with your organization to implement appropriate methods and tools for data collection, risk assessment and supply chain monitoring. We support you in the introduction of IT solutions that automate processes and improve data transparency. In addition, if desired, we can develop a specific due diligence system that is precisely tailored to the needs and requirements of your company.
Fulfilling the EUDR reporting obligations is an essential part of the compliance process. Ventum Consulting helps you to develop and implement a formalized reporting process. Our experts support you in collecting and preparing the necessary information to meet both internal and external reporting requirements. We ensure that your reports not only comply with regulatory requirements, but also increase the transparency and credibility of your company vis-à-vis stakeholders and the public.
In today’s regulated and environmentally conscious market, EUDR compliance is not just about complying with regulations, but also
about securing a sustainable competitive advantage. Ventum Consulting’s expertise in EUDR compliance positions your company for resilience and growth in the global marketplace. Our partnership ensures that your business processes are not only compliant with current regulations, but also in line with wider sustainability goals and ready for the demands of tomorrow’s market.
In summary, the EUDR presents both significant challenges and opportunities for businesses. With Ventum Consulting as your partner, you can safely navigate this complexity while promoting compliance, sustainability and business growth in an increasingly regulated global landscape.
