EUDR: Continuing compliance efforts in 2025
Reassessing data and supply chain practices
The European Union Deforestation Regulation (EUDR) mandates that companies ensure their products are deforestation-free and comply with relevant legislation by the end of 2025. A critical initial step in this compliance journey involves conducting comprehensive gap analyses to assess current data management and supply chain practices. This process identifies discrepancies between your organization’s existing operations and the EUDR requirements, enabling the development of targeted strategies to achieve compliance. For more information on understanding EUDR, see last month’s blog.
1. Data Management Gap Analysis
Objective: Evaluate your current data collection, storage, and reporting mechanisms to ensure they meet EUDR standards.
Steps:
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- Inventory Existing Data: Compile all available data related to your products’ origins, including geolocation coordinates of production areas, land ownership documents, and production timelines. The EUDR requires operators to obtain precise geolocation data (latitude and longitude) for all plots of land where commodities are produced, as well as the date or time range of production.
- Assess Data Accuracy and Completeness: Evaluate the precision and comprehensiveness of your data. Ensure that all required information is available and accurate, as incomplete or incorrect data can lead to compliance failures, resulting in fines and supply chain disruptions.
- Identify Data Gaps: Determine areas where data is missing, outdated, or lacks the required specificity. This may include missing geolocation data, incomplete supplier information, or outdated production records.
- Develop a Data Enhancement Plan: Create a strategy to fill identified data gaps. This could involve implementing new data collection processes, upgrading data management systems, or collaborating with suppliers to obtain necessary information.
Tips:
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- Leverage Technology: Utilize advanced tools like Supply Chain Transparency technology to enhance data accuracy and traceability.
- Automate Data Processes: Implement systems that automate data collection and reporting to reduce manual errors and improve efficiency. Integrating EUDR data into your existing systems using APIs can ensure effortless compliance.
2. Supply Chain Practices Gap Analysis
Objective: Examine your current supply chain operations to identify discrepancies between existing practices and those required for EUDR compliance.
Steps:
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- Map Your Supply Chain: Develop a comprehensive map of your entire supply chain, from raw material sourcing to final product delivery. This includes identifying all suppliers, intermediaries, and logistics partners.
- Evaluate Supplier Compliance: Assess each supplier’s adherence to EUDR requirements, focusing on their sourcing practices, traceability systems, and compliance records. The EUDR requires operators to implement a due diligence system to avoid sourcing commodities or products that are not deforestation-free or have not been produced in accordance with relevant legislation.
- Identify Process Gaps: Highlight areas where current practices fall short of EUDR standards, such as lack of traceability, insufficient documentation, or inadequate risk assessment procedures.
- Develop an Improvement Plan: Formulate strategies to address identified gaps, which may involve restructuring supply chain processes, enhancing supplier agreements, or investing in new technologies to improve traceability.
Tips:
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- Risk Assess Your Suppliers: Collaborate closely with your suppliers to ensure they understand EUDR requirements and are committed to compliance. Rate their performance so that you know which supply chains present a risk that needs to be addressed. Regular communication and training can foster a culture of transparency and accountability.
- Utilize Monitoring Tools: Employ satellite-based analysis and AI-driven solutions to monitor supply chain activities in real-time, ensuring early detection of potential deforestation activities and enabling prompt action.
- Implement Risk Mitigation Measures: Develop and document strategies to mitigate identified risks in your supply chain. This could include obtaining further information, conducting independent surveys, or performing field audits, all of which should be digitized to relieve administrative burden and maintain an audit trail of your mitigation efforts.
By conducting thorough gap analyses in data management and supply chain practices, and implementing targeted improvement strategies, your organization can effectively align with EUDR requirements. Proactive engagement and continuous monitoring are essential to ensure compliance and contribute to global deforestation reduction efforts.
Should you need support with EUDR, please contact us here and one of our EUDR consultants will be in touch.
