How Supply Chain Transparency Tools Are Tackling the EUDR
In a bid to address the environmental impact of agricultural expansion, the European Commission has unveiled the Deforestation Due Diligence Statement Registry.
This online platform supports compliance with the EU Deforestation Regulation (EUDR), which requires companies to prove their products are free from ties to recent deforestation.
From December 2024, operators, traders and other businesses will use this registry to submit electronic Due Diligence Statements (DDS) to authorities, confirming their products meet the regulation’s strict sustainability criteria.
The new registry offers a range of tools designed to simplify the compliance process. Key features include interactive map-based tools for indicating product origins, options to upload geolocation data in bulk and a dashboard for tracking DDS submissions.
For large-scale businesses, the system also supports API connections, allowing machine-to-machine data exchange to streamline high-volume operations.
EUDR-compliance software providers such as OPTEL are already integrating their platforms with the registry, making it easier for businesses to manage the necessary documentation.
EUDR’s purpose: Combatting deforestation through supply chains
The EUDR is part of a larger EU initiative to curb deforestation and protect biodiversity by targeting agricultural practices that harm forests.
With commodities like cocoa, rubber and palm oil under scrutiny, the EU aims to minimise its indirect contributions to deforestation globally.
In doing so, the law seeks to reduce carbon emissions by 32 million metric tonnes each year, reinforcing the EU’s climate and nature conservation goals.
The regulation aligns closely with other EU-wide policies, including the European Green Deal and the Farm to Fork Strategy. Both initiatives aim to address root causes of deforestation and champion sustainable agricultural practices.
In 2020, we set a goal to achieve a deforestation-free supply chain in palm oil, paper and board, tea, soy and cocoa.
Here, we allocated substantial resources over several years to tackle the challenge in its multiple dimensions: to support smallholder farmers, improve cultivation practices, ensure traceability and transparency in the supply chain; build our own processing facilities; innovate alternative materials through cutting-edge science; and to reformulate thousands of product lines to reduce or eliminate their dependency on forest-risk commodities.
This focused approach has been instrumental in helping us to achieve 97.5% deforestation-free order volumes by the end of 2023. It’s the type of approach we intend to replicate.
The EUDR will replace the EU Timber Regulation, which focused on illegal logging. Under the new rules, however, the focus broadens: businesses must ensure the products they bring into the EU are not associated with recent deforestation and must verify the traceability of these products' supply chains.
This added layer of scrutiny is intended to promote transparency and environmental accountability within global supply chains, especially for major players in deforestation-prone industries.
While larger companies will need to demonstrate compliance immediately, smaller businesses will gradually adapt to the new standards over time.
As a result, all players in the supply chain, from producers to end-product retailers, will face increased accountability for the environmental impact of their products.
How the registry simplifies compliance
The Deforestation Due Diligence Statement Registry offers multiple functions to help businesses navigate EUDR requirements.
Operators and traders can submit their DDS, demonstrate product traceability and confirm their goods are not linked to deforestation.
Using the map-based tool, users can draw boundaries of sourcing areas, upload geolocation coordinates or reuse stored information, making it easier to manage data for multiple products. Other features include specifying product characteristics, such as volume and origin and tracking the status of DDS submissions through a central dashboard.
For large-scale operations, the registry’s API connection capabilities allow companies to automate the submission process, reducing the time and manual effort required for compliance.
OPTEL’s Optchain software, for instance, is being tailored to link with the registry, offering an end-to-end solution that includes traceability, geolocation data capture and AI-driven risk assessments.
Optchain also provides corrective actions for risk mitigation and is equipped to manage DDS through the EU’s API. This level of integration is particularly useful for larger companies that handle complex supply chains and need a streamlined approach to manage the added regulatory requirements.
Meanwhile, other tools like Prewave use AI to assess compliance risks. Prewave’s platform automates supplier engagement and uses data analytics to monitor the supply chain in real-time. Developed with partners such as Taylor Wessing and Satelligence, the software is designed to detect potential deforestation links and flag compliance issues, reducing false positives and improving efficiency.
This, combined with its integration with the EU’s TRACES certification platform, helps companies manage EUDR compliance comprehensively and efficiently.
Challenges and broader implications of the EUDR
The EUDR presents unique challenges, especially for smaller suppliers and farmers who may lack the resources to meet the new requirements immediately.
“We see this regulation as promising for reducing deforestation and forest degradation … but there are many challenges on how these will be applied on the ground, especially for smallholders," comments Dr Chandra Silori, Deputy Executive Director of RECOFTC.
Smaller producers may face demands for more detailed geolocation data and evidence of legal compliance, adding complexity to their operations.
Ann Nachtergaele of Fevia highlights similar concerns, especially regarding the administrative burden placed on SMEs within large company supply chains.
She explains: “The European registration system will not be available until mid-December. This can have consequences on the availability of certain raw materials and their price as large companies are then obliged to send questionnaires to the many small companies, which quickly become overwhelmed.”
For farmers, the additional paperwork could mean significant bureaucratic strain, potentially affecting their businesses and livelihoods.
Despite these challenges, some industry voices view the EUDR as an opportunity for proactive companies.
The new regulation marks a significant shift in the EU’s approach to combatting deforestation, setting a high standard for supply chain transparency and sustainability. By mandating strict due diligence and promoting traceable, deforestation-free products, the EUDR aims to make the EU a global leader in environmental responsibility.
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