Article
What is the EUDR and what does it mean for companies?
By Caoilinn O’kelly
May 6, 2026
Key takeaways
The EUDR mandates operators and traders supplying EU markets prove products like palm oil, soy, cocoa, coffee, cattle, rubber, and wood are free from recent deforestation.
The EUDR applies from 30 December 2026 for large and medium operators, and from 30 June 2027 for micro and small operators.
Due diligence under the EUDR requires supply-chain traceability down to the production plot, including geolocation and risk assessment data.
Products placed on the EU market must include original due diligence; those merely made available can reference an existing valid statement.
What is the EUDR and what does it mean for companies?
The European Union Deforestation Regulation (EUDR) became effective on June 29th, 2023. It was introduced to address deforestation and forest degradation linked to the import and production of specific commodities within the EU. The EUDR applies from 30 December 2026 for large and medium operators, and from 30 June 2027 for micro and small operators. This occurs after a controversial delay of reporting obligations by one year. Meaning many organisations are in the midst of preparations for this regulation. This article aims to explain the ins and outs of the EUDR, what is it, what is required of companies, and who must comply.
What is the EUDR?
The EUDR is a regulation aimed at avoiding the purchase, use and consumption of products that contribute to deforestation and forest degradation, in the EU and on a global level. It directly affects specific commodities being sold in the EU market, to address the deforestation caused by the demand of these products. The main driver of deforestation is the expansion of agricultural land used to produce certain commodities. The EUDR targets seven main commodities that are commonly associated with deforestation and degradation, including palm oil, soya, wood, cocoa, coffee, cattle, and rubber. The EUDR also affects products derived from these commodities including leather, chocolate, tyres and furniture.
Who must comply with the EUDR?
The EUDR mandates that any operator or trader who supplies these commodities or derived products in the EU must demonstrate compliance. In practice, this means operators and traders must provide evidence that their products do not originate from recently deforested land or contribute to forest degradation. This statement must follow all legal requirements, and is accompanied by a due diligence statement.
An operator is any entity within the EU that introduces relevant products onto the market or exports them from the EU.
A trader is any entity that buys and sells relevant products already on the EU market for distribution, further processing, or consumption.
Products are separated into those that are placed on the market, and those that are made available on the market. This difference is important for understanding the scope of products subject to the EUDR.
Products that are placed on the market are made available on the EU market for the first time. This occurs when an operator makes a product available for distribution, consumption or use for the first time during the course of its commercial activity.
In comparison, products that are made available on the market are those that are supplied for distribution, consumption or use in the course of commercial activity. These products must be present in the EU either because they were harvested or produced within the EU, or imported in after production. The product must be supplied during the course of a commercial activity. Occurring when a trader supplies relevant products on the EU market.
This distinction is important because products that are placed on the market must provide their own due diligence statement. Whereas, products that are made available on the market can reference a prior due diligence statement conducted, linking the product to its original due diligence statement completed when it was first produced.
What is involved in the due diligence statement?
Those subject to the EUDR must issue a due diligence statement. The aim of the due diligence statement is to establish and keep an up to date framework of the procedures and measures used to produce these commodities. The due diligence statement involves collecting information about the relevant products, undergoing a risk assessment and adopting risk mitigation measures to ensure no deforestation occurs as a result of these products.
Information gathering under traceability. The due diligence statement provides product details, quantity, suppliers, country of production, and proof of legal harvest information. It is crucial to obtain geolocation coordinates for the production plots and include this information in the statement. The EUDR specifically mandates that operators and non-SME traders should trace the origin of every relevant commodity back to its specific plot of land to ensure accountability in the supply chain and prevent any violations of the regulation.
Risk assessment and documentation. Organisations must use the data collected in the first step as part of their risk assessment to evaluate the likelihood of non-compliance based on criteria outlined in EUDR. The purpose of the risk assessment is to not only verify the information in the due diligence statement, but also to analyse the information for changes over time. This risk assessment must be documented and reviewed at least once a year, with records accessible to responsible authorities upon request.
The risk assessment is based on many variables including, the presence of forests the presence and consultation of indigenous peoples, and concerns related to corruption in the country of production as well as the prevalence of deforestation.
Risk mitigation operations. After completing the risk assessment, organisations must decipher the risk levels. If risks of non-compliance exceed negligible levels, organisations must take steps to mitigate them. Organisations that source from low-risk areas have simplified due diligence requirements and are exempt from risk assessment and mitigation unless they receive relevant information indicating potential risks of non-compliance.
Is the EUDR connected to any other sustainability legislations?
Organisations that are already obligated to conduct value chain due diligence under other EU laws like the Corporate Sustainability Reporting Directive (CSRD) may meet their reporting obligations for EUDR by including the necessary information in their reports for those other legislations.
The Corporate Sustainability Due Diligence Directive (CSDDD) is an overarching due diligence framework that delves into social, and environmental due diligence, with a wider scope than the EUDR. Companies that are subject to the CSDDD will find overlap between the EUDR and CSDDD and harmonising reporting efforts will make both processes easier.
Simvia is a Supply Chain Management solution that not only meets EUDR standards but also addresses broader European regulations like the PPWR, CSRD and CSDDD. This approach ensures that our offerings provide comprehensive compliance and streamlined due diligence across all aspects of European legislative requirements.
Want to know more about Simvia's role in the EUDR? Contact us to learn more.
