Designed to fight deforestation and to contribute to stop climate change, the EUDR aims to guarantee the sale of deforestation-free products in the EU. Compliance will require robust and auditable supply chain traceability that will allow companies to conduct the necessary "due diligence" and demonstrate the origin of their products.
The EUDR is part of a global regulatory trend towards end-to-end corporate responsibility and the reversal of the burden of proof for companies in all sectors. The impact of its implementation is going to be huge for both the producers and the consumers. It is a landmark regulation that will fundamentally alter how the covered commodities are manufactured. And for companies, the underlying ESG, financial and economic stakes are colossal.
Between 1990 and 2020, an area larger than that of the EU was lost to deforestation, with EU consumption responsible for around 10% of this loss
A brief reminder of what is in the EU Deforestation-free Regulation
The law requires companies to ensure that the products they sell in the EU have not contributed to deforestation and forest degradation. Cattle, cocoa, coffee, palm oil, rubber, soya, and wood are included in the scope of the EUDR, as well as products that contain, have been fed, or have been manufactured with these commodities (such as leather, paper, and furniture).
To be able to export within the EU, businesses will have to trace their products to the fields where they were grown to prove origin. The traceability of such products is particularly challenging due to the opaque nature of already complex supply chains, which makes it more difficult to monitor and prove their origin.
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Nevertheless, companies will need to obtain from their suppliers a "due diligence" statement confirming that the product did not originate from deforested land or contribute to forest degradation, including of irreplaceable primary forests; and confirm that these products comply with the applicable laws of the country of production, including those pertaining to human rights, and that the rights of afflicted indigenous peoples have been respected.
Traceability for EUDR compliance
Traceability undoubtedly has a fundamental role to play in proving the origin of raw materials and derivatives. Ensuring compliance will require robust and auditable supply chain traceability, which will enable the companies concerned to carry out the required "due diligence" effort, verify and demonstrate the origin of these products.
This is where we can assist you. Our supply chain traceability and transparency platform based on blockchain enables:
- Traceability by batch, unit, reference, or mass balance, for all varieties of products and ingredients
- Visibility of the end-to-end supply chain, drill-up and -down
- Real-time supply chain monitoring (key traceability, performance, impact or risk indicators) to ensure regulatory compliance and readiness for non-financial reporting.
- Data auditability by design
- Turnkey solution, simple to use, and rapid implementation
For example, Tilkal collaborates with Valrhona (premium chocolate manufacturer), bringing fine, end-to-end, and real-time traceability to Valrhona's cocoa value chain to support responsible cocoa ESG management.
Our solution provides the brand a firm comprehension of the upstream supply chain, a guarantee of the quality of the cocoa beans, and a solid foundation for the brand's commitment to combat deforestation (traceability for EUDR compliance) and improve the living and working conditions of producers.
Contact us to find out which of our offers meets your requirements the best!