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Looking Beyond EUDR: How Can You Prepare?
By building a strong supply chain and due diligence system to prepare for EUDR, you can also prepare for several other upcoming environmental regulations.
Published January 26, 2025
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Asharita D'Silva
Coffee experts@Era of We
The European Union Deforestation Regulation (EUDR) is a long-awaited and much anticipated regulation that has recently had a deadline extension, from December 2024 to December 2025. While the regulation's goals remain unchanged, the European Commission has acknowledged the challenges businesses face in adapting to these requirements.
A recent decision to extend key compliance deadlines has been welcomed by industry stakeholders, providing additional time to address supply chain complexities, operationalize new systems, and implement due diligence processes effectively.
This extension underscores the Commission's commitment to balancing rigorous environmental objectives with practical business realities. It also offers an opportunity for operators and traders to align with new guidelines, utilize forthcoming tools, and collaborate with authorities to ensure readiness before the Regulation takes full effect. The deadline extension reduces immediate pressure, allowing businesses to take more strategic and structured approaches to compliance while addressing potential bottlenecks.
In this article, we explore the latest updates on EUDR requirements, practical steps to build a strong due diligence system, and strategies for businesses to prepare effectively. Looking beyond EUDR, we also examine how compliance today paves the way for meeting future environmental laws and standards.
Updates on The EUDR Requirements
Recent updates highlight efforts to ease administrative burdens, streamline reporting, and minimize unnecessary bureaucracy while ensuring full compliance with the regulation's objectives.
Stakeholder feedback continues to shape implementation, with the Commission prioritizing the operationalization of the Information System and benchmarking risk categorization. These tools are slated for release no later than six months before the Regulation’s application, enhancing predictability and ensuring smoother compliance for operators and traders.
Building A Strong Due Diligence System
Creating a strong due diligence system is essential for EUDR compliance. Businesses must align their operations with clarified guidelines and leverage new tools to bolster their supply chains.
To reduce risks, organizations are expected to integrate comprehensive risk categorization mechanisms and ensure robust traceability across their supply chains. Collaboration with competent authorities and active use of the Commission’s evolving support materials will be an important part of the implementation. Additionally, simplified processes for sourcing from low-risk countries, where applicable practices, can help reduce the overall compliance burden while meeting regulatory objectives.
Due Diligence and transparency begin with understanding the origins of all products and raw materials. Businesses must develop detailed supply chain maps that trace materials back to their source. This should include information about suppliers, regions of origin, and the associated risk of deforestation through reference numbers (RN) provided by the EU traces system.
Leveraging technology with tools such as geospatial mapping and satellite monitoring to ensure end-to-end visibility in your supply chain is a way to reduce the workload in becoming EUDR compliant. These technologies not only enhance traceability but also help identify potential risks in real-time. An example of such software is EoW, which manages inputs from various tools/suppliers to help users manage their supply chain in one platform.
How Can Businesses Prepare for EUDR in 2025?
Preparation for EUDR in 2025 involves a proactive approach. Businesses should begin by understanding the Commission's latest simplifications and updated FAQs, ensuring internal systems align with clarified reporting and due diligence requirements. Key preparatory steps include:
Familiarizing teams with the Information System and benchmarking risk categorization tools.
Conducting pilot projects to test due diligence systems in collaboration with suppliers and stakeholders.
Staying informed of updates to the guidelines and leveraging feedback mechanisms provided by the Commission.
By focusing on these measures, businesses can streamline their compliance journey while staying ahead of upcoming regulatory deadlines.
Beyond EUDR: Compliance Now Sets the Path for Future Laws
The EUDR exemplifies the growing emphasis on sustainability and traceability in global regulations. Businesses that embrace compliance now—by aligning with simplified processes, leveraging risk categorization tools, and engaging stakeholders—can position themselves for success in future regulatory landscapes.
The European Commission's ongoing analysis underscores the long-term benefits of early compliance. Proactive businesses can achieve a competitive edge, build stronger supply chains, and foster trust among consumers and partners while contributing to broader environmental and social objectives.
1. Corporate Sustainability Due Diligence Directive (CSDDD)
The CSDDD, currently under development, aims to establish a comprehensive framework for corporate accountability in environmental and human rights issues. Unlike the EUDR, which focuses specifically on deforestation-linked products, the CSDDD addresses broader supply chain risks, including labor rights violations, pollution, and climate impact. Key elements of the CSDDD include:
- Mandatory Due Diligence: Companies will be required to identify, prevent, and mitigate adverse impacts on human rights and the environment throughout their supply chains.
- Corporate Responsibility: Directors will need to integrate sustainability into their corporate strategy and consider its long-term effects.
- Penalties for Non-Compliance: Businesses failing to meet these requirements may face financial penalties and legal liabilities.
By adopting robust due diligence practices for EUDR compliance, companies can build a foundation for meeting CSDDD standards and reducing supply chain risks across multiple dimensions.
2. Farm to Fork Strategy
The EU’s Farm to Fork Strategy is a key component of the European Green Deal, aiming to create sustainable food systems that are environmentally friendly, socially equitable, and economically viable. This strategy emphasizes:
- Sustainable Agriculture: Reducing pesticide use, minimizing greenhouse gas emissions, and promoting biodiversity.
- Food Transparency: Clear labeling of food origins and production methods to empower consumers.
- Circular Economy Practices: Encouraging resource efficiency and waste reduction in the agri-food sector.
EUDR compliance aligns closely with Farm to Fork goals by ensuring that imported commodities meet sustainability standards. Businesses involved in the food industry should integrate these principles into their operations to stay ahead of regulatory and market expectations.
3. Green Claims Directive
The Green Claims Directive focuses on combating misleading environmental claims and ensuring transparency in sustainability-related product marketing. Key aspects include:
- Clear and Verifiable Claims: Companies must substantiate environmental claims with reliable, evidence-based data and avoid vague or unsubstantiated terms like “eco-friendly.”
- Standardized Reporting: The directive establishes harmonized methods for evaluating and communicating the environmental impact of products and services.
- Third-Party Verification: Independent verification will become mandatory for green claims to ensure credibility and compliance.
For businesses already implementing due diligence systems under EUDR, extending these efforts to verify and transparently communicate sustainability claims is a natural next step.
4. Ecodesign for Sustainable Products Regulation (ESPR)
The Ecodesign for Sustainable Products Regulation (ESPR) aims to create a comprehensive framework for improving the sustainability of products within the EU market. While the EUDR specifically targets deforestation-free supply chains, the ESPR focuses on enhancing product design to promote circularity, energy efficiency, and overall environmental performance. Key elements of the ESPR include:
- Sustainable Product Design: Manufacturers will be required to ensure products are durable, repairable, and recyclable, reducing waste and resource consumption.
- Digital Product Passport: A mandatory product information system will enhance transparency, providing data on sustainability attributes like origin, carbon footprint, and recyclability.
- Market Surveillance: Authorities will monitor compliance and non-conforming products will be subject to penalties or removal from the market.
By achieving early compliance with EUDR requirements, companies can build a strong foundation for meeting ESPR obligations. Ensuring sustainable sourcing and strong due diligence systems under EUDR complements the ESPR's focus on circularity, energy efficiency, and product longevity.
The Competitive Advantage of Early Compliance
Adopting sustainable practices in alignment with these regulations offers significant benefits beyond legal compliance. Businesses can:
Build stronger relationships with environmentally conscious consumers.
Enhance supply chain resilience and mitigate risks.
Position themselves as leaders in the sustainability space, attracting investors and partners.
As regulatory frameworks like the CSDDD, Farm to Fork Strategy, and Green Claims Directive take shape, EUDR compliance provides an invaluable head start. Businesses that proactively embrace these changes will be better prepared to adapt to a rapidly evolving sustainability landscape, achieving both compliance and competitive advantage in the global marketplace.
About the author
Asharita D'Silva
Join me in discovering the wonderful world of coffee! As a writer, coffee is my fuel and newfound passion. I love writing about new coffees, sustainability, and coffee culture around the world. I'm always discovering new things about coffee and the industry, which I share with the great community here at Era Of We.
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