Since it came into effect in June 2023, the EU Regulation on Deforestation-Free Products (EUDR) has put fashion companies that use leather, rubber and wood on notice to ensure their supply chains are free from illegal deforestation. Now, the industry is racing to prepare for compliance, working towards a December 2024 deadline when the law’s main obligations will start to apply.
The EUDR recognises that deforestation holds significant risks for the planet as forests are vital for maintaining global biodiversity and sequestering carbon from the atmosphere. Canopy estimates that 300 million trees are logged each year. Leather has been linked to the decimation of the Amazon rainforest, where vast swathes of forest have been cleared to farm cattle and grow soya plantations to feed livestock.
Analyzing Your Supply Chain
Many fashion companies are currently analyzing their supply chains to understand whether the EUDR will impact them, a process which the EUDR has left up to interpretation. This has created uncertainty around supplier expectations, the consequences of non-compliance and the unknown outcomes of the law.
Adding to the complexity of compliance, brands can expect the EU Commission to review and revise the regulation by at least June 2028 and every five years after this date. This means companies have to take into account not only the current requirements but unknown future requirements that might impact their supply chains.
Prove with Granular Data
To prove that their products are not linked to illegal deforestation, fashion companies will need to collect granular data that reaches the very start of the supply chain. This could include a geospatial analysis of the relevant farms in the supply chain to prove that no deforestation has occurred since December 2020. This level of information can only be achieved through product-level traceability, which also gathers information on volume reconciliation and product segregation.
Now is the time to prepare for the enforcement of the EUDR. The TrusTrace EUDR Whitepaper is a must-read resource to help brands navigate the incoming law. In it, we’ll share the details of the regulations mapped with the technical requirements needed. We’ll also share some learnings and expectations of the EUDR based on discussions with industry experts, alongside three recommendations for navigating and complying with this law.
Download the Guide and Recommendations
Get your guide to understanding the EUDR and how traceability can help your team achieve supply chain compliance for all due diligence and traceability regulations. Download the guide.
