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EUDR requirements 2026 at a glance
- New schedule
- Application for large and medium-sized companies from December 30, 2026, for micro and small companies from June 30, 2027. Special case: micro/small companies that were already subject to EUTR from December 30, 2026.
- DDS simplified
- The declaration of due diligence (DDS) is generally the responsibility of the first distributor. Downstream actors work more with reference numbers instead of resubmitting everything.
- Benchmarking
- The country risk classification (low/standard/high) is published and influences how intensively checks are carried out.
- Geodata remains the core
- Traceability back to the field continues to be the decisive verification component, including clean data formats and consistent references in the EU system.
- Sanctions remain strict
- Violations can result in significant fines (up to 4% of annual turnover, depending on national regulations) plus market measures such as withdrawals and sales stops.
Recommended immediate measures:
✓ Check supply chains and analyze risks
✓ Introduce traceability systems
✓ Train employees and suppliers
✓ Prepare due diligence statement
✓ Establish KPI system to measure progress
Definitions: Deforestation and forest degradation
The EUDR requires a critical review and adaptation of supply chain processes. Sustainability managers are required to link regulatory requirements with corporate strategies and ensure complete transparency regarding the resources used.
The EUDR distinguishes between"deforestation" and"forest degradation". Deforestation refers to the conversion of a forest to agricultural use, e.g. soy fields or pastures. Forest degradation, on the other hand, refers to serious damage to forests that impairs their natural structure, composition and functioning. Companies must ensure that their products come from areas that are free from both processes.
EUDR deadlines 2026
The EUDR is already in force, but will only become binding in day-to-day business with the application deadlines. Following the latest adjustments, the current timetable is as follows: Large and medium-sized companies must comply with the requirements from December 30, 2026. Micro and small enterprises have until June 30, 2027. A special case concerns micro and small enterprises that were already covered by the previous EU Timber Regulation (EUTR). For them, the deadline is also December 30, 2026.
Large and medium-sized companies must meet the requirements from December 30, 2026. Micro and small enterprises have until June 30, 2027. A special case concerns micro and small enterprises that were already covered by the previous EU Timber Regulation (EUTR). For them, the deadline is also December 30, 2026.
From these dates, certain raw materials and products made from them may only be traded if the requirements are met. These include wood, beef, cocoa, coffee, palm oil, rubber and soy as well as numerous derived products such as leather, paper, furniture and chocolate. The specific products covered are listed in Annex I of the regulation, which defines the goods concerned using customs tariff codes.
Country benchmarking: risk classification of countries of origin
The EU has now divided the countries of origin into three risk classes: low, standard and high. This classification has already been published and serves as a guide as to how high the deforestation risk is typically assessed depending on the origin. This is practically relevant for companies because it determines the level of testing and documentation required. In the case of supply chains with links to high-risk countries, significantly stricter checks and robust verification are to be expected, while simplified due diligence obligations are possible for low-risk countries. At the same time, the classification also influences how likely official inspections are, as monitoring is risk-based.
The country benchmarking system classifies the countries of origin into 3 risk categories: low, standard and high.
EUDR checklist: 3 immediate measures
Our precise checklist of immediate measures provides you with clear and efficient guidance on how to achieve EUDR compliance immediately in three key steps. These measures will actively strengthen the sustainability of your supply chains and ensure the long-term success of your company.
Checklist in detail
In the initial compliance phase, it is crucial to use a targeted checklist to design the process efficiently and manage risks effectively. Sustainability managers should systematically analyze and document all steps of their supply chain in order to transparently trace the origin of all raw materials. This not only ensures compliance with regulations, but also forms the basis for sound decision-making.
Regular audits of suppliers are an essential part of ensuring their compliance with the EUDR. Such audits help companies to identify potential weaknesses at an early stage and take targeted, timely action.
In addition, the development and implementation of due diligence systems is essential. These systems help to identify and mitigate risks along the supply chain. Sustainability managers should carry out regular risk assessments to identify potential deforestation risks at an early stage and act accordingly.
The next step is to train employees. Understanding the EUDR requirements and implementing them in daily work processes is essential. The training should not only impart theoretical knowledge, but also focus on the practical application possibilities.
In order to optimally prepare companies for the new requirements, these training courses should be structured and targeted according to the various areas of work.
In the area of purchasing, for example, it is essential that the relevant stakeholders are informed about the legal requirements and understand how they can implement them in their procurement strategies. Purchasing plays a central role, as decisions in this department have a significant impact on the entire supply chain. Targeted training on the requirements of the EUDR can help to identify risk factors at an early stage and take appropriate measures to avoid environmental impacts.
At the same time, an interdisciplinary approach is advisable, as this ensures that all areas of the company are optimally prepared for the challenges and communicate with each other.
Companies must establish systems to ensure transparency and traceability in order to guarantee the traceability of the materials used and the processes carried out. Modern technologies can support this by capturing and tracking data to facilitate compliance with regulatory requirements.
Companies are obliged to record precise geodata on cultivation areas in order to ensure the traceability of their raw materials and their origin from deforestation-free areas. However, the manual collection of this data is time-consuming and prone to error. Automated solutions optimize this process and improve both the efficiency and accuracy of data storage.
Integrating the new EUDR compliance processes into existing ERP and management systems is a challenge. Digital tools such as our EUDR module enable seamless embedding of these requirements into operational processes and facilitate risk analysis through standardization and automation, ensuring legal compliance. In addition, digital data exchange within the supply chain significantly improves communication and increases transparency.
Monitoring and reporting
Establishing key performance indicators to measure progress can help to quantify the success of the measures implemented. Regular reporting obligations and communication with authorities ensure that companies remain informed about current developments and compliance standards.
Establishment of KPIs to measure progress
To ensure the effectiveness of ESG compliance measures, monitoring and reporting is crucial. The establishment of customized key performance indicators (KPIs) enables companies to precisely measure and evaluate the progress of their sustainability initiatives. These indicators should be specific to a company's individual goals and legal requirements and should be reviewed regularly to ensure continuous improvement.
- Percentage of sustainably sourced raw materials: This KPI measures the percentage of raw materials that come from sustainable sources. Companies should strive to continuously increase this percentage in order to minimize their environmental impact.
- Supply chain transparency: Recording and analyzing the proportion of suppliers whose deforestation practices have been verified is essential. This not only demonstrates a company's commitment to sustainability, but also the effectiveness of the verification processes in the supply chain.
- Awareness training programs: The proportion of employees who have participated in training on EUDR and its importance for the company is crucial. This ensures that everyone involved is aware of the need for and objectives of EUDR.
- Environmental impact with regard to deforestation: Measuring the reduction of emissions or other negative environmental impacts due to a change in procurement practices provides information on the success of the measures implemented.
- Stakeholder engagement: The number of stakeholders (including NGOs and communities) engaged with as part of EUDR compliance measures should be recorded. A high level of interaction can strengthen the trust and credibility of the company.
Reporting obligations and communication
The regular reporting obligation is an essential part of the compliance strategy. Companies must prepare detailed reports that not only document internal progress, but also confirm compliance with legal regulations.
This includes open and clear communication both within the company and with the relevant authorities, as well as the preparation of information in a comprehensible and well-structured manner.
The following aspects should therefore determine reporting and internal communication:
- Documentation and accuracy: Make sure that the reports not only confirm compliance with legal requirements, but also document internal progress in detail. Accurate and precise recording of all relevant data is crucial.
- Structured data preparation: Ensure that the information provided is presented in an understandable and structured form to optimize readability and receptivity.
- Deadline management: This means that clear timetables must be drawn up for the fulfillment of key requirements. All relevant stakeholders, from purchasing to the compliance department, should be involved. Identifying critical deadlines at an early stage enables companies to take action and develop strategies to comply with legal requirements in good time.
- Submit due diligence statement: Companies must prepare a due diligence statement (DDS), which is submitted to the relevant EU authorities as part of the EUDR compliance process. This document must confirm supply chain transparency and compliance with due diligence obligations and must be updated regularly.
- Keep an eye on sanctions: Violations of the EUDR can result in high fines of up to 4% of annual turnover, confiscation or destruction of goods and exclusion from the EU internal market. These sanctions make the consistent implementation of the regulation economically essential.
Conclusion
The EUDR requires a comprehensive adaptation of company processes. Our checklist offers precise instructions for rapid implementation. Through early risk assessment, targeted employee training, digital transparency systems, due diligence statements and consistent progress measurement, companies not only ensure compliance with the legal requirements, but also their long-term success. Forward-looking implementation also protects against sanctions and strengthens your market position in international competition. Start implementing your EUDR compliance now.
Frequently asked questions
The EU Deforestation Regulation (EUDR) obliges companies to ensure that their products do not contribute to deforestation or forest degradation. It promotes transparent, sustainable supply chains.
Large and medium-sized companies must meet the requirements from December 30, 2026, micro and small companies from June 30, 2027.
Raw materials such as wood, livestock, cocoa, coffee, palm oil, rubber, soy and products made from these (e.g. furniture, paper, chocolate, leather).
Companies must provide precise location data on the cultivation areas in order to prove that the raw materials originate from deforestation-free areas.
Fines of up to 4% of annual turnover, confiscation of goods or exclusion from access to the EU internal market.
Through a risk analysis of the supply chain, the introduction of traceability systems, targeted employee training, a due diligence statement and continuous monitoring based on defined KPIs.
Karim Boukaouche
LinkedInESG-Compliance Experte · lawcode GmbH
Karim Boukaouche berät Unternehmen bei der Umsetzung der EU-Entwaldungsverordnung (EUDR) und begleitet die Implementierung digitaler Lösungen für rechtssichere Lieferketten. Seine Fachbeiträge auf dem lawcode Blog verbinden regulatorische Tiefe mit praxisnahen Handlungsempfehlungen.
