The EU Deforestation-Free Regulation - Practical Preparation Checklist
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What is the Regulation?
Regulation (EU) 2023/1115 on deforestation-free products (“EUDR”) or the ‘Deforestation-Free Regulation’, has been introduced to combat the significant environmental and social challenges posed by deforestation.
The Regulation promotes deforestation-free supply chains. By regulating the import and export of specific products linked to deforestation, the Regulation seeks to mitigate biodiversity loss, climate change, and violations of human rights.
The Regulation aims to reduce carbon emissions caused by EU consumption and production of the relevant commodities by at least 32 million metric tonnes a year, whilst embedding environmental due diligence into the day-to-day operations of businesses. It will aim to address all?deforestation?driven by agricultural expansion to produce the commodities captured by the scope of the regulation.
In Part 1 of our EUDR Guide looked at what the Regulation covers, who it will impact and its timeline for implementation. Part 2 of our Guide explored the obligations imposed on Operators and Traders by the Regulation and the sanctions for non-compliance.
But how can you best prepare your business for compliance and avoid sanctions? In Part three of our guide to the EUDR, Commercial Associate Ella Paskett explores some key practical considerations to help you ensure you’re ready when the Regulation comes into force.
Our expert Commercial Team is on hand to help you navigate upcoming regulations whether its establishing which of your products may be caught by the scope, understanding your obligations or implementing due diligence processes. Get in touch with us today. ?
Key Considerations Checklist for EUDR Preparation and Compliance:
Determine your own scope – will your business be caught by the regulation?
o?? Assess which of your products will be caught by the scope of the Regulation.
o?? Define your role – are you an Operator or Trader under Regulation definitions.
o?? Define your size – are you a SME or Non-SME under Regulation definitions.
o?? Gather data for products in scope & inform suppliers about upcoming requirements.
Assess the impact
o?? Are your suppliers likely to be affected by the Regulation?
o?? Can you prioritise goods based upon their importance to your business?
o?? Creating and maintaining due diligence processes for supply chains will come with costs and additional training requirements. Do you have appropriate staff and software?
Screen your current and future suppliers
o?? A Supplier Code of Conduct should be drawn up.
o?? Do your existing standard form contracts need revising to account for the EUDR?
o?? If you have any bespoke sale contracts, consider whether there are any express provisions you could incorporate to take into account compliance with the EUDR. This will benefit both parties as you’ll have clarity from the start.
An ongoing strategy will be needed to handle compliance with the Regulation in the long term. This may involve several factors, some of which are below:
??????? undertake due diligence with current suppliers;
??????? monitor EU guidance;
??????? consider reducing the supply of certain products to the EU;
??????? source from low-risk areas;
??????? substitute other commodities; and
??????? adapt your supply base.
Useful Websites
Our expert Commercial Team is on hand to help you navigate upcoming regulations whether it's establishing which of your products may be caught by the scope, understanding your obligations or implementing due diligence processes. Get in touch with us today. ?
If you missed Part 1 and Part 2 of our EUDR Guide, you can read them here now.