EU Deforestation Regulation
What is EU Deforestation Regulation?
The new EUDR aims to guarantee that the products EU citizens consume do not contribute to deforestation or forest degradation worldwide.
It aims to do so by promoting the consumption of ‘deforestation-free’ products and reducing the EU’s impact on global deforestation and forest degradation, the new regulation is expected to bring down greenhouse gas emissions and biodiversity loss.
Key points of note
- Applies to key commodities like palm oil, timber, coffee, cocoa etc., and extends to products derived from these commodities.
- Companies must ensure products are deforestation-free since December 31, 2020.
- Mandates due diligence, risk assessment, and transparency in supply chains.
- Includes penalties (up to 4% of company turnover) for non-compliance, impacting EU and non-EU businesses.
- Aims to reduce carbon emissions and protect biodiversity.
- Effectiveness starts from December 2024, with phased applications for different enterprise sizes.
Why GSES?
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EUDR X GSES- Alignment with pillars
Utilizing GSES can streamline the process of EUDR compliance, particularly in sustainable procurement practices, while advancing overall sustainability objectives. The following is a high-level overview of the GSES pillar and its alignment with the EUDR
EU Deforestation Regulation and GSES Products Module
- The product module provides an overview of the sustainability performance of all products, including those that contain controlled commodities (palm oil, timber, coffee, cocoa) under the EUDR
- Bills of Materials of products are third-party verified; enabling a risk analysis by providing the portfolio of products that may be subject to due diligence through the EUDR
- Sustainability certifications attached to these commodities and derived products are third-party validated, and can facilitate an easy overview of all the products and their associated materials of risk.
