What is the EUDR?
The EUDR (EU Deforestation Regulation) obliges companies to prove that certain products have been produced in a deforestation-free and legally compliant manner. The aim is to effectively curb global deforestation - primarily by regulating the trade in risky raw materials.
In concrete terms, this means that only deforestation-free products may be placed on the EU market or exported from the EU.
Seven raw materials are affected: palm oil, soy, wood, cocoa, coffee, beef and natural rubber, as well as numerous downstream products such as chocolate, paper, furniture and tires.
Who does the EUDR apply to?
The EUDR is aimed at:
- Importers of high-risk raw materials and products from third countries,
- Exporters from the EU,
- as well as producers and processors within the EU who place these products on the European market.
This means that not only large corporations, but also small and medium-sized companies are obliged to prove that their products are deforestation-free.
What does the EUDR actually require?
The regulation is based on three central obligations:
- Prove freedom from deforestation: The product must not originate from areas that were deforested after December 31, 2020 - regardless of whether the deforestation was legal or not.
- Legality in the country of origin: All applicable environmental, labor and human rights regulations must have been complied with.
- Due diligence declaration: This must be submitted via the EU TRACES portal and contain all relevant information on geodata, suppliers and risk analyses.
If the proof is missing, the product may not be sold - even if it is already in stock.
What happens in the event of violations?
In addition to fines (at least 4 % of the annual turnover):
- Confiscations,
- Exclusion from public contracts,
- and reputational damage due to public disclosure of the violations.
The most serious economic effect: products without EUDR-compliant proof may no longer be placed on the market. Access to the EU internal market is therefore directly linked to freedom from deforestation.
Deforestation-free products as a future standard
The EUDR makes it clear: deforestation-free products are no longer a voluntary approach to sustainability, but a regulatory requirement. Companies that do not have their supply chains under control are exposing themselves to massive risks - both legal and economic.
At the same time, the regulation offers opportunities: those who proactively shape change can position themselves as a sustainable provider, strengthen customer trust and achieve long-term competitive advantages.
How cubemos helps with the implementation
Our new white paper on EUDR offers a step-by-step guide - especially for SMEs:
- Identification of relevant products and suppliers
- Assessment and documentation of risks
- Preparation and submission of the due diligence declaration
- Technical integration with ERP systems
With the cubemos Software can be used to automate due diligence obligations, efficiently record supplier data and systematically track deforestation-free products.
Conclusion
The EUDR is a milestone in sustainable procurement. Anyone who wants to offer deforestation-free products must act now - and actively shape their supply chain.
