EUDR Regulation: What is and how to comply with the requirements?

EUDR – European Union Deforestation Regulation – is a European Union regulation that aims to combat deforestation and promote sustainable practices in supply chains. The document, which brings together a series of requirements for the forestry sector, came into force in June 2023 and companies must apply it from December 30, 2024.

To help manage your forestry assets under the requirements of the EUDR regulation, you can count on the support of INFLOR solutions. Want to know how? Then we invite you to check out this special content, prepared by us, from the INFLOR Blog.

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EUDR regulation: what is it and what is it used for?

The Council of the European Union established the EUDR regulation with the main objective of combating deforestation. Companies in the forestry sector must demonstrate that they source deforestation-free resources for specific products entering the EU market. It is essential to be aware of this regulation, as non-compliance can lead to fines of up to 4% of a company’s turnover.

According to the Climate Policy Estimate, this legislation aims to prohibit the import and trade, within the European bloc, of products derived from certain commodities – cattle, soy, palm oil, coffee, cocoa, timber, and rubber – originating from deforested forest areas.

It is important to highlight, that products originating from 12 countries, including Brazil, will be the most affected. Check out the full list 👇

• Brazil
• Argentina
• Ecuador
• Peru
• Malaysia
• Indonesia
• Guatemala
• Costa Rica
• Colombia
• Ivory Coast
• India
• Vietnam

What are the EUDR requirements for companies?

The EUDR regulation requires companies to adopt a series of measures by December 2024 to ensure the traceability of the origin of products and the monitoring of the geographical coordinates of the plantation where the products were grown. The regulation requires companies to carry out due diligence to ensure that products comply with the criteria – a procedure that includes three steps:

🟢 Collect information about the products, including their description, quantity, origin, supplier details and evidence that the products are deforestation-free and legally produced.

🟢 Assess the country’s level of risk, its levels of deforestation; the presence of indigenous peoples, levels of consultation with them and any claims regarding land use or ownership; the reliability of the information collected in the first stage; the complexity of supply chains and any record of non-compliance within them; the risk of mixing with products of unknown origin; etc.

🟢 Requesting additional information, data, or documents, conducting independent research and audits or other measures, and supporting suppliers’ compliance. Companies are required to have adequate systems in place to provide effective risk mitigation, including subjecting them to independent audits.

And how can INFLOR help in this process?

To comply with the requirements of the EUDR regulation, the forestry company must provide data that allows the traceability of the entire asset cultivation chain. Therefore, it must have the support of forestry management software, which guarantees greater security and assertiveness of the information.

“The INFLOR EUDR solution consists of an architecture developed by us that collects all the necessary data on the origin of the wood and associates it with information on the final product (such as pulp, laminates, paper, and others). This architecture performs a credit calculation to ensure that the product has been correctly linked to the origin of the wood, ensuring traceability following the standards. The information required by the EUDR on wood traceability includes details such as transportation, felling, planting location, stand specification, and stand polygon. This data must be present in the product batches generated from this wood, to ensure compliance.”

• Fabrício Emiliano, Head of Sales from INFLOR

The INFLOR EUDR solution provides mechanisms to ensure the correct provision of data, securely and reliably, meeting the strictest market standards. Through it, we provide the INFLOR Forest Ledger (IFL), which tracks data transactions relevant to auditing and validation processes, ensuring an unalterable basis for the traceability of consumed wood from its origin. As a cloud solution, we also provide the most robust resources, provided by Amazon Web Services (AWS), which allows us to have strict data governance, indexing, and encryption.

Once transacted, the data in the IFL is stored in a way that any attempt to change it is prevented, allowing to securely obtain and share it with interested parties.

Want to know more? Get in touch with our team of experts. We are available to assist you.

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