What procurement and supply chain leaders need to know, and act on now.
The EU Deforestation Regulation (EUDR) is not just another regulatory hurdle. It’s a transformative shift in how global supply chains must operate, bringing unprecedented scrutiny to the sourcing of commodities like soy, beef, palm oil, wood, coffee, cocoa, and rubber.
For procurement and supply chain professionals, this is a call to action: assess your risk exposure, identify compliance gaps, and take strategic steps to ensure uninterrupted market access to the EU.
Why it matters
From December 30, 2025 (and June 30, 2025 for SMEs), companies must prove that products placed on or exported from the EU market are:
- Produced in accordance with relevant local laws
- Backed by geolocation data and due diligence reporting
Failing to comply doesn’t just mean regulatory fines, it risks reputational damage, shipment blocks, and supplier disengagement.
Step 1: Understand your exposure
Start by asking:
- Do we source any EUDR-covered commodities (or derivatives) in our supply chain?
- Are these linked to high-risk countries or regions with ongoing deforestation?
- Do we have access to information on the land plots where commodities were grown?
Many organisations only have partial insight into where their raw materials originate. EUDR raises the bar: You must know the precise plot of land where commodities were produced.
Step 2: Identify compliance gaps
Common blind spots include:
- Lack of supplier traceability tools: Can you trace ingredients or inputs to the farm or plantation level?
- Incomplete geolocation data: Do you collect and verify plot-level coordinates?
- No risk classification mechanism: Do you know which suppliers and sourcing regions are considered high-risk under EUDR? Do you have information from suppliers that helps mitigate that risk?
- Disjointed due diligence processes: Is your documentation centralised, auditable, and up to date?
- Limited supplier engagement: Are your suppliers trained, prepared, and equipped to provide EUDR-compliant data?
Step 3: Build a risk-based due diligence framework
To comply with EUDR, your due diligence system must include:
- Comprehensive information about commodity origins (to the plot level)
- Risk assessment procedures (country, commodity, supplier-specific)
- Mitigation measures (including supplier remediation and substitution)
- Documentation and reporting workflows (to submit due diligence statements to the EU)
Don’t rely on manual processes or siloed spreadsheets, digital platforms that centralise and automate due diligence will be critical to achieving scale and audit readiness.
Step 4: Engage and collaborate with your suppliers
Suppliers are your first line of defence, and your biggest risk if unprepared. Start with:
- Supplier segmentation by commodity,geography, and risk
- Clear communication of data requirements and timelines
- Pre-compliance training and onboarding
- Efficienty tools for geolocation capture and documentation
Step 5: Monitor continuously
EUDR is not a one-time compliance event, it’s an ongoing obligation. Companies must update risk assessments regularly, track any sourcing changes, and demonstrate ongoing due diligence. Consider supply engagement technology, third-party data, satellite monitoring, and ESG risk signals to stay alert and adaptive.
Proactive Beats Reactive
The EUDR is redefining procurement responsibility. Those who assess their risks now and address gaps early will not only avoid disruption, they’ll gain a competitive edge with EU buyers and consumers who increasingly demand transparency and accountability.
Ready to assess your EUDR risk exposure?
Start with a risk screening across your key commodities and sourcing regions, and get clarity on where you stand.
