A Practical Guide to Meeting EUDR Requirements

Key Takeaways

• The EU Deforestation Regulation (EUDR) requires businesses to ensure that commodities and products placed on or exported from the EU market are deforestation-free and legally produced.

• Companies must collect comprehensive data, including geolocation coordinates, supplier details, and product traceability records, to demonstrate compliance.

• A risk assessment process is essential to evaluate deforestation risks in supply chains using tools like satellite monitoring and supplier evaluations.

• If risks are identified, businesses must take corrective actions, such as working with suppliers to improve sourcing practices or shifting to verified deforestation-free sources.

• Full traceability is required to track commodities from production to market, ensuring transparency and regulatory compliance.

• Companies must submit a due diligence statement before placing products on the market, confirming that all compliance checks have been completed.

• Ongoing monitoring and auditing are necessary to maintain compliance, including regular supplier reviews and risk reassessments.

• Meeting EUDR requirements can be complex, but digital solutions like Pinja’s forest industry services can help businesses streamline compliance, improve efficiency, and ensure long-term sustainability.

1. Collect Detailed Information About Commodities and Products

Collecting detailed information about commodities and products is important for complying with the EU Deforestation Regulation (EUDR). Complete and accurate data ensures transparency, supports risk assessments, and verifies that products meet deforestation-free requirements.

You need to document specific types of information for each commodity or product, including:

• Product details – Type, trade name, and a clear description.

• Quantity and volume – Measured amounts of the commodities.

• Supplier information – Name, location, and contact details.

• Country of origin – Where the raw materials were sourced.

• Geolocation data – Precise plot-level coordinates of production land.

Geolocation data is critical. It directly links products to their production sites, allowing authorities to verify compliance with deforestation-free requirements. Without accurate coordinates, demonstrating adherence to EUDR regulations becomes difficult.

To implement this requirement efficiently:

• Use centralized data management systems to store and organize documentation.

• Request due diligence information from suppliers and establish verification processes.

• Develop internal checklists to ensure the required data is collected at each step.

Maintaining up-to-date records is equally important. Supply chains evolve, and any changes have to be reflected in your data to remain compliant. Regular updates ensure that your documentation stays accurate and audit-ready.

Geolocation data is the foundation of EUDR compliance, linking products to their deforestation-free origins.

 

2. Conduct Risk Assessments to Evaluate Deforestation Risks

Assessing deforestation risks is essential for meeting EUDR requirements. Identifying high-risk areas and suppliers allows you to take corrective actions before placing products on the EU market. A structured risk assessment process helps ensure compliance and maintain supply chain integrity.

A thorough risk assessment involves multiple key elements:

• Country-level deforestation analysis: Look into historical and current deforestation data to determine the risk level of sourcing regions. Countries with active land-use changes or weak enforcement of environmental laws typically pose higher risks.

• Supplier compliance evaluation: Assess whether suppliers adhere to environmental regulations and sustainability standards. This includes verifying certifications, reviewing compliance histories, and checking for past violations.

• Supply chain complexity assessment: The more intermediaries involved, the harder it is to track deforestation risks. Mapping supply chains and identifying weak points helps mitigate hidden risks.

To implement risk assessments effectively, use reliable data sources and analytical tools:

• Geospatial tools and satellite imagery: Platforms like GIS software and remote sensing technology help detect land-use changes in supplier regions.

• Deforestation monitoring databases: Cross-check sourcing areas with public datasets, such as Global Forest Watch, to identify high-risk locations.

• Internal risk rating frameworks: Develop a standardized system to categorize suppliers based on their environmental performance, prioritizing those with strong sustainability practices.

Documenting the entire risk assessment process is critical. Clear records create an audit trail, making regulatory reviews more efficient and demonstrating compliance with EUDR requirements.

3. Mitigate Identified Risks Before Placing Products on the Market

Before placing products on the EU market, you have to mitigate any risks identified during the assessment process to comply with the EU Deforestation Regulation (EUDR). Addressing these risks proactively helps prevent non-compliant products from entering your supply chain and reduces the likelihood of penalties or disruptions.

Effective risk mitigation requires a combination of supplier collaboration, internal controls, and continuous monitoring. Key strategies include:

• Working with suppliers to resolve identified risks by promoting sustainable land management practices and ensuring they align with deforestation-free requirements.

• Strengthening supplier selection criteria by prioritizing partners with sustainability certifications or a proven commitment to responsible sourcing.

• Providing supplier training programs to improve their understanding of EUDR compliance and reinforce best practices.

• Implementing stricter internal controls, such as additional audits for suppliers operating in high-risk regions, to verify adherence to deforestation-free sourcing.

Regular follow-ups are important to confirm that mitigation efforts remain effective and sustainable. Conduct periodic reviews of supplier performance, update risk assessments as conditions change, and adjust mitigation measures accordingly.

4. Ensure Full Traceability of Commodities and Products

Ensuring full traceability of commodities and products allows you to link products to their origin plots with verified data, demonstrating compliance with deforestation-free criteria and legal standards. 

To implement an effective traceability system, follow these steps:

• Adopt blockchain technology or similar platforms to create tamper-proof records of your supply chain, ensuring transparency and data integrity.

• Assign unique identifiers to product batches so they can be tracked at every stage, from sourcing to final distribution.

• Establish agreements with suppliers to share traceability data and update it regularly, maintaining consistency and accuracy across the supply chain.

• Integrate traceability data into a centralized system for easy retrieval during audits and inspections, reducing compliance risks.

• Test and validate the traceability system periodically to confirm its accuracy and effectiveness, identifying and addressing any gaps before they impact compliance.

A well-structured traceability system not only ensures compliance but also strengthens supply chain oversight, reducing risks related to deforestation-linked sourcing.

5. Submit a Due Diligence Statement Before Market Placement

Before placing regulated commodities or products on the EU market or exporting them, you have to submit a due diligence statement to the EU Information System. This statement is a formal declaration that your organization has fully assessed, mitigated, and resolved any risks related to deforestation. Without this submission, market placement is not legally permitted.

To prepare and submit the due diligence statement:

• Consolidate all required data into a standardized format. This includes geolocation coordinates of production areas, supplier details, and findings from your risk assessments. Ensure that all information is accurate and verifiable.

• Use the EU Information System platform to upload the statement. The submission has to include all mandatory fields along with supporting documentation that demonstrates compliance with EUDR requirements.

• Verify the accuracy of the information before submission. Incomplete or incorrect statements can lead to compliance penalties or market access restrictions.

• Maintain a copy of the submitted statement for internal records. This documentation might be required for future audits or regulatory reviews.

Submitting a complete and accurate due diligence statement is a critical step in ensuring compliance with EUDR and maintaining access to the EU market.

6. Regularly Monitor and Audit Compliance Processes

Ensuring sustained compliance with the EU Deforestation Regulation (EUDR) requires continuous monitoring and auditing of supply chains. Regular assessments help identify emerging risks, verify supplier adherence, and maintain accurate traceability records.

Establishing a structured audit schedule is important. Conduct periodic internal audits to review supplier performance, assess traceability systems, and evaluate risk mitigation strategies. Technology plays an important role in monitoring compliance—use satellite imagery and deforestation tracking tools to analyze land use changes in production areas. Random spot checks and third-party audits further improve verification, ensuring the accuracy of submitted data and supplier compliance.

Audit findings should inform process improvements. When audits reveal gaps or regulatory updates introduce new requirements, adjust internal procedures and systems accordingly. This proactive approach reduces compliance risks and strengthens the integrity of due diligence efforts.

Maintaining a well-documented audit trail is critical for regulatory reviews. A comprehensive record of assessments, corrective actions, and supplier evaluations not only demonstrates compliance but also reinforces a commitment to sustainable sourcing.

7. Adapt to Compliance Deadlines and Requirements

The EUDR introduces phased implementation, with medium and large operators required to comply by December 30, 2025, and micro and small enterprises by June 30, 2026. Preparing early minimizes the risk of last-minute compliance failures and potential market restrictions.

To manage compliance effectively, develop a structured roadmap detailing each requirement and breaking it into actionable milestones. Allocate adequate resources for system implementation, risk assessments, and due diligence preparation. Staying informed about regulatory updates is important, as guidance might evolve based on industry feedback and enforcement experiences.

Regularly reviewing progress ensures that adjustments can be made before deadlines approach. Periodic assessments help identify potential gaps and allow for corrective actions to maintain compliance. Instead of treating compliance as a one-time obligation, integrate it into ongoing business processes to ensure long-term adherence.

A proactive approach to EUDR compliance reduces operational risks and strengthens supply chain resilience.

 

Turning EUDR Challenges into Opportunities with Pinja

Meeting EUDR requirements involves detailed data collection, risk assessments, mitigation strategies, traceability, due diligence, and continuous compliance monitoring. These obligations can be complex, especially for industries with complex supply chains like forestry and bioenergy. 

Ensuring compliance requires advanced systems to track and verify the origins of commodities, assess deforestation risks, and maintain transparent records. Without the right tools, the administrative burden and risk of non-compliance increase significantly.

EUDR compliance is an opportunity to optimize operations while meeting regulatory standards. Digital solutions can streamline processes, improve data accuracy, and improve supply chain visibility. 

Pinja’s forest industry solutions, including ERP systems for wood procurement, production management, and traceability, help businesses integrate compliance into their workflows. With automated data collection, real-time monitoring, and structured reporting, companies can reduce manual work, minimize risks, and ensure full adherence to EUDR requirements.

By utilizing Pinja’s expertise, businesses can transform compliance challenges into operational advantages. Optimized data management and traceability systems not only meet regulatory demands but also improve efficiency and sustainability across the supply chain.

FAQ

What are the requirements for EUDR traceability?

EUDR requires full traceability of commodities to their exact production plot. Companies must collect and store geolocation coordinates, supplier details, and product movement records. Digital tracking systems, batch-based identification, and real-time data updates help maintain compliance and ensure transparency in the supply chain.

Is EUDR mandatory?

Yes, EUDR is mandatory for all companies placing or exporting covered commodities (e.g., timber, soy, coffee) in the EU market. Non-compliance can result in penalties, including fines of up to 4% of a company’s annual EU turnover and restrictions on market access.

What is EUDR compliance?

EUDR compliance means meeting due diligence requirements, including collecting geolocation data, assessing deforestation risks, mitigating risks before market placement, ensuring full traceability, and submitting a due diligence statement to the EU’s Information System before selling or exporting products.

What are the criteria for risk assessment of the EUDR?

Risk assessment considers deforestation risks based on geolocation data, deforestation indices, supply chain complexity, and supplier reliability. Companies must evaluate country-level deforestation trends, verify supplier claims, and use external monitoring tools like satellite imagery or audits to assess and document potential risks.