The EU’s new regulations for sustainability are impacting industries across the EU and even beyond. As a result, the wood industry is facing increasing demands to implement practices that promote sustainable wood production, processing and sales. While the new obligations pave the way for more environment-friendly operations across countries, they also require effort from the entire value chain.
The deforestation regulation EUDR was released by the European Union in June 2023, with an 18-month transition period. The main objective of the regulation is to decrease deforestation and forest degradation. Many operators are already affected.
What EUDR means for the wood industry
Above all, the deforestation regulation EUDR calls for more stringent ways to ensure that wood products released on the markets have not contributed to deforestation. Companies affected must demonstrate that the wood collected, produced, processed or sold by them are from sustainable sources and that wood has not been harvested from so-called primary forest. The information provided must cover the entire value chain.
In practice, this is verified through a Due Diligence Assurance process in all instances where wood is processed and released on the market. Information on the origin of the wood, including key information about the supplier as well as the buyer, needs to be verifiable at all stages and stored for 5 years.
Read more: FSC certificate in the wood industry – how to ensure traceability in the supply chain
Who is responsible for ensuring that the requirements are met?
The entire value chain for wood-based products is affected by the requirements. Until country-level legislation is imposed, there are open questions on how the EUDR will be implemented in practice. The circumstances of timber trade matter in terms of who needs to bear responsibility for meeting the requirements.
Because of the potential complexity of the value chain and process, it is necessary to collect and retain the required information at different stages, every time the material changes owner and whenever it is processed further. A forest company purchasing wood on its own behalf is obligated to take on the requirements of the regulation. On the other hand, if an operator purchases wood from a forest owner in a procurement trade situation, the forest owner must carry out the DD assurance or authorize the operator to do it on their behalf.
Sustainability requirements
Another major EU-level regulation to consider is the Corporate Sustainability Reporting Directive (CSRD), which aims to standardize sustainability reporting across industries. It is being gradually implemented in companies of different sizes, and some organizations are required to consider it in their reporting for the financial year 2024 already. Its implementation is guided by the European Sustainability Reporting Standard (ESRS).
Tightening sustainability requirements will require a lot of work in terms of gathering and storing relevant data to meet all new requirements.
Interested in finding out more?
Watch the webinar on how EUDR and CSRD are impacting the wood industry and gain insights on how operators in the industry should consider them.
We actively monitor the progress of the deforestation regulation and work diligently to ensure that our customers can meet its requirements. We aim to provide our customers with all the support and guidance they need, facilitating their transition to the new standards so they can continue their business responsibly and sustainably also in the future.
Do you need advice regarding the deforestation regulation? Come visit us at the Trä & Teknik fair in Gothenburg from August 3rd to 6th at booth B01:07, or get in touch with us!
Read more
How to respond to the requirements of the EUDR Deforestation Regulation in the wood industry?
The EU Deforestation Regulation (EUDR) and data traceability – how to meet the new requirements?
FSC certificate in the wood industry – how to ensure traceability in the supply chain
