The EU Deforestation Regulation (EUDR – EU 2023/1115) is an EU mandate ensuring that specific commodities and products sold on or exported from the EU market do not contribute to deforestation or forest degradation. It entered into force in June 2023. Following an extension, the full application date is currently set for the end of 2025 for large enterprises and mid-2026 for SMEs.
For manufacturing companies in the food, consumer goods, and wood processing industries, the EUDR is not an abstract environmental goal—it is an operational due diligence requirement that demands seamless traceability from the raw material back to the specific plot of land.
The EUDR covers seven primary commodity groups and all products derived from them:
For manufacturers in Central Europe, this directly impacts sectors ranging from furniture and food production to automotive suppliers and packaging manufacturers.
Companies placing EUDR-relevant goods on the EU market must fulfill three core obligations:
Companies must collect evidence proving that goods do not originate from land deforested or degraded after December 31, 2020. This requires geolocation data (GPS coordinates) of the specific plots, plantations, or forest areas where the raw materials were produced.
Based on the collected information, companies must evaluate whether there is a risk that the goods are non-compliant. The EU classifies countries into three risk categories: low, standard, and high.
If risks are identified, mitigation measures—such as supplier audits, additional certifications, or switching sources—must be implemented before the goods enter the market.
The EUDR sets the highest traceability standards of any current EU trade regulation. Raw materials must be traceable to the parcel level. For a manufacturer, this means knowing exactly which material from which delivery was processed in which specific batch.
If you mix raw materials from different origins in silos or warehouses without batch-specific documentation, you cannot meet EUDR requirements. A Manufacturing Execution System (MES) that tracks material batches from goods receipt through every production step to the finished product is the essential tool here. Without digital batch tracking, EUDR compliance is not scalable and carries high legal risks.
Member states are responsible for enforcement. The regulation stipulates that sanctions must be effective and dissuasive, including:
The EUDR should not be viewed in isolation. The traceability infrastructure required for EUDR—batch-specific origin documentation and supplier risk analysis—is the same foundation needed for LkSG (Supply Chain Act) due diligence, CSRD Scope 3 reporting, and future Digital Product Passports. An integrated data strategy allows companies to meet multiple regulatory requirements with a single investment.
A product is considered deforestation-free if the land used for its production has not been deforested or experienced forest degradation after December 31, 2020. This "cut-off date" is fixed, regardless of when the product was purchased or processed.
Suppliers must provide GPS polygons (for areas over 4 hectares) or GPS points (for smaller areas). The EU provides a satellite-based monitoring system to cross-check these coordinates against forest cover data.
If data is missing, the product cannot be legally placed on the EU market. This remains the most significant operational hurdle for companies sourcing from complex international supply chains.
Recycled materials and waste are generally exempt from the EUDR, provided they can be proven to originate from the circular economy rather than new forest use. This creates a strong incentive for using certified recycled sources.