Preparing for the EU Deforestation Regulation: Using the Delay as a Business Advantage
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Regulation & Compliance
Regulation & Compliance
November 14, 2024
November 14, 2024

Preparing for the EU Deforestation Regulation: Using the Delay as a Business Advantage

Prepare for the EU Deforestation Regulation with proactive strategies. Discover how businesses are turning EUDR compliance into a competitive edge with supply chain transparency, due diligence systems, and collaboration. Learn how Interu simplifies the path to compliance.

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Despite the confirmed delay, many businesses across Europe are still stepping up their game in preparation for the EU Deforestation Regulation. With enforcement dates set for December 2025 for large companies and June 2026 for SMEs, the regulation is reshaping how EU Operators approach compliance. While this additional time offers a window to prepare, the complexity of aligning with EUDR requirements leaves many companies facing unique challenges and opportunities.

At Interu, we’re seeing how proactive businesses are navigating the transition. One European Timber Operator said they see being EUDR compliant as a competitive advantage, others have used the opportunity to get ahead and be a leader in supply chain traceability, and another told us their customers are asking them to help them to be compliant now, and are not prepared to wait a year. 

Here’s a look at how operators are positioning themselves, the hurdles they’re encountering, and the actions they can take to set themselves up for success under EUDR.

Building Awareness and Taking Initial Steps

Compliance is achieved by Operators mapping their supply chains to trace raw materials to their origins and proving they aren’t involved in deforestation. This involves gathering and sorting data, including geolocation information, to allow them to conduct risk assessment to ensure products are legally sourced and responsibly managed. Yet, for many, the real challenge lies in securing reliable and consistent data from a global supply chain network that is often complex and opaque.

Establishing Due Diligence Systems

A strong due diligence system is at the core of EUDR compliance. Operators are investing in robust systems to record and share precise product information, assess risks associated with their supply chains, and take steps to mitigate these risks. With the European Commission providing new guidance, many companies are focused on building compliance frameworks that can be scaled and adapted as EUDR requirements evolve. Furthermore, they are obtaining value when the same systems can serve multiple existing regulations - whether that’s EUTR and UKTR, or the likes of CSRD. 

However, this step can bring operational and financial demands. Introducing comprehensive due diligence systems requires time, resources, and mapping internal practices to new requirements. For companies looking to streamline this process, partnering with traceability solutions like Interu can reduce both the cost and the complexity of meeting these rigorous standards, by working with users’ existing systems, supporting their suppliers, and acting as the platform to collect, manage and share verified information (rather than the same data existing across multiple different systems).

Collaborating Across the Supply Chain

Effective EUDR compliance relies on transparency, not just within a company but across its entire supply chain. Businesses are actively engaging with suppliers to ensure they can access the data needed to fulfil EUDR reporting obligations. Early and consistent communication is critical, particularly for complex supply chains involving multiple countries and suppliers. Suppliers need to not only understand the role they play in meeting the requirements, but also how to effectively use due diligence systems. 

At Interu, not only do we facilitate secure, traceable data exchanges, making it easier for companies to collaborate across borders, but we do this by providing both the Operator and their suppliers with their own account. This means they are able to manage and share their information from one system, rather than having to fill out and share information in multiple different formats for each of their clients. Not only does this make it easier for supplier participation, but it creates more reliable end-to-end traceability.

Navigating the Challenges

Despite progress, the journey towards EUDR compliance has its challenges. Introducing or enhancing traceability can be a time and resource-intensive task, which is why it is important for a due diligence system to be as easy to use as possible, and the financial cost considered based on the usage versus it being one price for all. 

Additionally, as the EU introduces an Information System for submitting due diligence statements (Traces NT), Operators are faced with the need to learn another new system. Upcoming training sessions organised by the EU will help ease this transition, and our Chief Product Officer, David Coleman, talks in this article about the integration Interu has with Traces NT to ensure the due diligence information required to back-up these claims is verified and readily available and minimise the manual data entry burden for Operators. 

Moving Forward: Proactive Preparation is Key

The EUDR timeline may have been extended, but businesses should approach this as an opportunity for proactive, strategic preparation rather than a time to relax. Taking immediate action to address the complexities of EUDR compliance will not only minimise future challenges but also allow businesses to build a reputation for transparency and responsibility.

For companies seeking a streamlined path to EUDR compliance, Interu’s solutions provide the tools to manage, verify, and track supply chain data with ease. By integrating technology and collaborative processes, Operators can enhance their due diligence efforts, simplify reporting, and stay on top of regulatory requirements with confidence. 

Interested in how Interu can simplify your journey to EUDR readiness? Get in touch with our team today and request a demo.

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