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ASSURANCE OF SUSTAINABILITY REPORTS: CONSOLIDATING A STRATEGIC DOCUMENT
Deforestation
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NAVIGATING THE EU's DEFORESTATION-FREE REGULATION (EUDR)
Jun. 17 2024
Forests are home to more than half the world's land-based species of plants and animals and have a vital role to play in the fight against global warming. More than a billion people depend on them for their livelihoods and around 300 million people actually live in forests.
As the global effort to combat deforestation and promote sustainable practices gains momentum, the European Union (EU) has introduced a landmark regulation: the Deforestation-free Regulation. This comprehensive framework aims to minimise the impact of deforestation and forest degradation associated with the production of certain commodities and products. For UK-based businesses operating in or trading with the EU market, understanding and complying with this regulation is of paramount importance.
The EUDR also supports the UN’s Sustainable Development Goal 15: to protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.
What products are affected by the EUDR?
The Deforestation-free Regulation will apply to a wide range of commodities, including cattle, cocoa, coffee, palm oil, soya, and wood, as well as derived products containing, consisting of, or produced from these commodities. Any business, regardless of its size or location, that imports or places these commodities or products on the EU market will be subject to the regulation's requirements.
What are the timelines for EUDR?
With the regulation set to take effect later this year, UK businesses need to start considering their approach now to ensure a smooth transition and avoid potential disruptions to their operations.
What are the benefits of complying with the EUDR?
Adhering to the Deforestation-free Regulation offers several benefits for UK businesses. Firstly, it demonstrates a commitment to environmental sustainability and responsible sourcing practices, which can enhance brand reputation and customer loyalty. Secondly, by aligning with the regulation, businesses can not only avoid penalties, but can future-proof their operations and maintain access to the EU market, which is a significant economic partner for the UK.
How can businesses comply with EUDR?
To comply with the Deforestation-free Regulation, UK businesses should take the following steps:
- Conduct a thorough assessment of their supply chains to identify any potential risks of deforestation or forest degradation associated with the commodities and products they handle.
- Implement robust due diligence systems to collect and verify information about the origins and production processes of their commodities and products.
- Ensure traceability throughout the supply chain, including the ability to provide accurate and verifiable information about the geographic coordinates of production areas.
- Obtain and maintain relevant documentation, such as geo-location data, tenure rights, and production and processing information, to demonstrate compliance.
- Establish clear procedures for handling non-compliant commodities or products and responding to potential violations or irregularities.
By embracing the EUDR proactively, businesses can position themselves as responsible and sustainable actors in the global marketplace. As consumer demand for environmentally-conscious products continues to rise, adhering to such regulations will be crucial for maintaining a competitive edge and fostering long-term growth. Not only that, but the EUDR compliance deadlines are fast approaching, making now the time to be considering your next move.
