European Union Deforestation Regulation (EUDR)
The solution for EUDR compliance
In an increasingly complex regulatory environment, complying with the EUDR (European Union Deforestation Regulation) can be a challenge. Our cloud platform offers you a comprehensive solution to manage all aspects of the regulations efficiently and securely.
This system must include information gathering (Due Diligence) on the origin of the products, risk assessment, and the adoption of measures to avoid or minimize the risk that the products come from illegally deforested areas. The applicability of the Regulation depends on several factors, such as the country of origin of the product, the type of production and forest management practices. This directive is an extension and update of the previous directive, the EU Timber Regulation (EUTR), and aims to increase the transparency and quality of sustainability information that companies must provide. The objectives of the EUDR are to reduce deforestation linked to EU consumption, promote sustainable production and consumption, protect biodiversity and ecosystem services, improve transparency and accountability, and contribute to sustainable development goals.
Responsibility according to role and company size
Main features of the EUDR
- The products affected by the European Deforestation Regulation (EUDR) are those that have a higher risk of being associated with deforestation and forest degradation. Wood, Cocoa, Coffee, Soy, Palm oil, Rubber and Cattle.
- Due diligence: Implementation of a due diligence system to assess and mitigate the risk of deforestation associated with the products.
- Prohibition of unsustainable products: The introduction, marketing, or export of affected products that do not come from deforestation-free areas or have not been produced in accordance with the legislation of the country of origin is prohibited.
- Due Diligence Declaration (DDD): Mandatory submission of a DDD in the European Commission's computer system before introducing affected products into the EU market or exporting them. The DDD should include information on the origin of the products, the due diligence measures implemented and the deforestation risk assessment.
- Traceability: Implementation of a traceability system to track affected products from production to marketing, ensuring compliance with the EUDR.
- Documentary record: Preservation of a record of the DDDs and related documentation for at least 5 years.
Affected products
Who has to comply with the EUDR?
The EUDR affects a wide range of companies within the European Union. Specific categories of companies that must comply with EUDR requirements include:
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Large companies: All large companies,
regardless of whether they are listed on the stock exchange or not. A company is considered large if it meets at least two of the following criteria:
- 250 or more employees.
- A total balance sheet exceeding 25 million euros.
- Net annual income exceeding 50 million euros.
- Companies listed on regulated markets in the EU: This includes both large companies and listed small and medium-sized enterprises (SMEs).
- Non-European companies: non-European companies that are part of the supply chain of these products may be indirectly affected by the EUDR, as their European suppliers will require information and guarantees on the origin and sustainable production of the products.
- Small and medium-sized enterprises (SMEs): They have the obligation to communicate to the operators and traders located in the subsequent links of the supply chain all the necessary information, including the reference number of the DDD and to provide the authorities with the required information and collaborate in the controls.
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