EUDR requirements at a glance: What to do now as a sustainability manager

Executive summary: EUDR requirements 2025/2026 at a glance

What companies need to know now:

1. Obligation to be deforestation-free: From December 30, 2025, wood, cattle, cocoa, coffee, palm oil, soy and rubber and products made from them may only be imported into the EU if they are demonstrably deforestation-free and have therefore not contributed to deforestation.
2. Supply chain transparency and geodata obligation: Companies must record precise geodata on cultivation areas and fully document the origin of all relevant raw materials.
3. Obligation to prepare a due diligence statement (DDS): In order to import the above-mentioned raw materials or products made from them into the EU, companies must submit and regularly update so-called due diligence declarations (DDS). The DDS can be submitted directly to the official EU information system via an online interface.
4. Sanctions for violations: If raw materials and products that have contributed to deforestation are nevertheless imported into the EU, fines of up to 4% of annual global turnover, confiscation of goods and exclusion from the EU market may be imposed.

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

EUDR compliance: What sustainability managers need to consider now

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.

Definitions according to EUDR: What exactly is deforestation and forest degradation?

The EUDR distinguishes between "deforestation" and "forest degradation". Deforestation refers to the conversion of a forest to agricultural use, e.g. soybean fields or pastureland. 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 2025/2026: Companies must achieve these targets

The EUDR sets clear deadlines and targets that companies must meet.

In all EU member states, certain raw materials and their products may only be traded if they are deforestation-free. These include wood, beef, cocoa, coffee, palm oil, rubber, soy and products made from them, such as leather, paper, furniture and chocolate. Combination products and further processing are also covered by the regulation.

Country benchmarking: risk classification of countries of origin

The EU will divide countries into risk classes (low, standard, high). This system will be available from June 30, 2025. Companies will have to comply with different levels of due diligence depending on the risk classification of the region of origin of their products. Origin from high-risk countries means more extensive checks and documentation.

EUDR checklist: 3 immediate measures for sustainability managers

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.

Check the supply chain: Recognizing risks for EUDR compliance at an early stage

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.

Employee training on the EUDR: how companies ensure their compliance

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.

EUDR transparency obligation: successfully introducing traceability systems

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: How to keep an eye on EUDR requirements

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. Establishing 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.

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.

Regular reporting obligations and communication with authorities

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:

1. 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.
2. Structured data preparation: Ensure that the information provided is presented in an understandable and structured form to optimize readability and receptivity.
3. 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.
4. 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.
5. 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.