The EU Deforestation Regulation (EUDR) introduces new requirements for companies that place certain commodities and derived products on the European market or export them from the EU. The regulation is designed to ensure that products consumed within the EU are not associated with deforestation or forest degradation and that they are produced in accordance with the laws of the country of origin¹.
For many industrial organizations, this shifts deforestation from a sustainability discussion into a concrete operational and compliance requirement that affects procurement, supply chain transparency and digital traceability.
What is EUDR and why it matters
The EUDR requires companies to demonstrate that relevant products are deforestation-free, meaning they were not produced on land that experienced deforestation after 31 December 2020. Companies must also confirm that these products comply with all applicable legislation in the country of production².
To demonstrate compliance, companies must conduct a structured due diligence process and provide evidence supporting their claims before products can be placed on or exported from the EU market.
The regulation applies to several commodities associated with global deforestation, including cattle, cocoa, coffee, palm oil, rubber, soy and wood, as well as many derived products such as leather, chocolate, furniture and paper-based goods³. Because these materials are used across a wide range of industries, the regulation affects manufacturers, distributors, traders and retailers throughout global supply chains.
Who is affected by EUDR
The regulation applies to operators and traders who place relevant commodities or products on the EU market or export them from the EU. Operators must conduct due diligence and submit compliance information before products can enter the market⁴.
In practice, this means companies must verify that their supply chains meet EUDR requirements, collect the necessary supporting information and ensure that suppliers provide accurate and traceable documentation. Organizations with complex supplier networks may face additional challenges when gathering and validating upstream data.
EUDR deadlines and planning horizon
The regulation will apply according to the following timeline:
- 30 December 2026 – large and medium-sized companies
- 30 June 2027 – micro and small enterprises⁵
Although the timeline provides organizations with time to prepare, compliance often requires significant changes to supplier engagement, traceability systems and governance processes.
Due diligence and traceability requirements
A central element of the regulation is the Due Diligence Statement (DDS). Before placing products on the EU market or exporting them, companies must submit a DDS confirming that the product meets the regulation’s requirements⁴.
These statements are submitted through the EU Information System, which acts as a centralized platform for registering due diligence statements and enabling authorities to verify compliance⁵.
To support this declaration, companies must collect and maintain documentation demonstrating that products are deforestation-free. This includes supply chain information, geolocation data identifying the production area and evidence confirming that products were produced legally under applicable local laws.
Operational challenges for companies
While the regulation is conceptually straightforward, implementation presents several operational challenges.
Many organizations lack the systems required to trace materials back to their geographic origin. Supply Chain information is often distributed across procurement systems, supplier documentation and logistics records. Additionally, upstream suppliers may not yet have the processes or digital tools required to provide reliable geolocation and compliance data.
As a result, companies must develop new approaches to supplier collaboration, data validation and risk management while ensuring that compliance processes integrate smoothly into existing operational workflows.
How IndX supports EUDR compliance
At IndX, EUDR compliance is approached as an operational transformation rather than a documentation exercise. The focus is on helping organizations establish sustainable processes that integrate compliance into existing supply chain and digital operations.
This includes defining governance frameworks, implementing traceability architectures and integrating compliance workflows into enterprise systems such as procurement, ERP and Supply Chain platforms. By establishing consistent data foundations and structured processes, organizations can meet regulatory requirements while maintaining operational efficiency.
References
- European Commission – Regulation on Deforestation-Free Products
https://environment.ec.europa.eu/topics/forests/deforestation/regulation-deforestation-free-products_en
- Regulation (EU) 2023/1115 – Deforestation-Free Products Regulation (Official Legal Text)
https://eur-lex.europa.eu/eli/reg/2023/1115/oj
- European Commission – Commodities Covered by the EUDR
https://environment.ec.europa.eu/topics/forests/deforestation/regulation-deforestation-free-products_en
- European Commission – FAQ on the EU Deforestation Regulation
https://environment.ec.europa.eu/publications/eu-deforestation-regulation-faq_en
- European Commission – EUDR Implementation Portal and Information System
https://green-forum.ec.europa.eu/nature-and-biodiversity/deforestation-regulation-implementation_en
