Understanding the EU Deforestation Regulation (EUDR)
?? The EU Deforestation Regulation, or EUDR for short, aims to ensure a sustainable supply chain to protect forests and biodiversity. It's a global step towards greater forest protection and obligates companies to meet various requirements in order to reduce global deforestation and protect primary forests.
????The EUDR must be implemented by affected companies by December 30, 2024. Compliance involves several considerations and the collection of specific data. In this article we explain important aspects for a compliant and efficient fulfillment of the EUDR with a software solution.?
But first of all, let's start with the most relevant question:
?? Who is affected by the EU Deforestation Regulation?
All companies that import, place on the European market, or export the following products:
Some derived products are also covered by the EUDR, widening the range of companies affected. As affected companies (starting with non-SMEs) will have to be EUDR compliant by 30 December 2024 it is necessary to start preparing now. From June 2025, small and micro businesses will also have to comply.
??? What data is relevant for compliance with the EUDR?
Two primary types of data are crucial under the EUDR:
?? But how to collect these relevant data?
The solution is as simple as the software works: Streamline your data collection for EUDR with automated software solutions??
Data collection is one of the key aspects mandated by the Regulation on Deforestation Free Products. It is a time-consuming and extensive task to fulfill. The osapiens software solutions facilitate the collection of data at various points, culminating in a unified compilation at the end. The integration of current supplier and product master data into the osapiens HUB for EUDR is achieved through an interface that simultaneously captures new data from a variety of stakeholders.
?? For example, suppliers can upload important documents such as certificates and land parcel information to the portal for secure access by their customers.?
In addition, a free farmer app makes it easy to collect geolocation data, especially for smallholder farmers outside the EU. This app is part of a broader software suite that consolidates historical, current, and real-time data, thus obviating the need for suppliers to manage multiple tools across various platforms. This integration not only increases automation, but also streamlines data processing within the osapiens HUB.?
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?? Risk analysis as a critical part of EUDR compliance?
In addition to data collection, EUDR also requires a risk analysis to be carried out. Risk analysis is foundational to EUDR and used to assess potential risks of deforestation in an area or along a company’s supply chain. To do this, it is critical to reliably identify the risk of both deforestation and forest degradation. While many public data sources exist, their reliability and specificity to EUDR needs can vary.
?? The osapiens HUB for EUDR solves this issue with a customized algorithm developed with the specifics of the EUDR in mind and enables reliable and cost-effective deforestation risk assessments. This includes methods for verifying deforestation and forest degradation scenarios to ensure EUDR compliance and minimize false positives.?
??How else does our software support the implementation of the EUDR?
Data collection and risk analysis are not the end of the story. Our software solution can do even more:
But what do these features mean and how do they help to implement EUDR?
The automated due dilligence reporting:
In short, the process is fully automated and integrated into the osapiens software.??Once all the necessary data has been collected, the software automatically generates the Due Diligence Statement. It uses the supplier data, the results of the legality and deforestation analysis in combination with other information. This data is then analyzed and processed into a Due Diligence Statement, which is submitted to the authorities via the EU Information System.
Secure and compliant data sharing:
Data security and compliance is paramount when working with sensitive data. All data managed within our software adheres to strict legal protocols that comply with ISO standards. The osapiens HUB for EUDR ensures that data exchange with customers and partners is not only compliant but also secure and anonymized, aligning with the GS1’s EPCIS standard specifically tailored for EUDR.?
Seamless integration with existing ERP Systems?
EUDR is not the first regulation most companies must comply with. In most cases, there are existing systems into which the software solution for EUDR must be integrated. The osapiens HUB for EUDR has a dedicated interface that makes the integration easy and automatic. It identifies and integrates all relevant information in existing systems. This includes company and process master data, as well as transactional data such as plot size and relevant traceability information.?
?? Watch the full video in which Georg Fischer explains in detail how our software solution for EUDR works.
Do you still have questions about EUDR and want to know if you are affected or find out more about our solution? Then contact us directly here.