GETTING YOU EUDR READY

5 March 2024

The EU Deforestation-free Regulation (EUDR) is an EU initiative designed to limit deforestation caused by forestry and agricultural activities all over the world.  It’s coming soon: the EUDR provisions will start being applied from 30 December 2024.

Under the new regulation, companies that export into the EU must conduct due diligence to show that products made from seven specified commodities have been produced legally and aren’t linked to land that has been deforested or degraded after 31 December 2020. 

The seven specified commodities are palm, soy, coffee, cocoa, rubber, cattle (beef and leather) and timber.

There are three parts to the due diligence for companies affected: 

1. Information consolidation – you must collect data about your products’ supply chains, including the geolocation of where the product originated.

2. Risk assessment – you need to assess the information you’ve gathered (for accuracy) to work out any risk of deforestation, forest degradation and illegality associated with the product.

3. Risk mitigation – if there is a risk, you need to demonstrate that you’ve taken actions to reduce risks to negligible levels. Actions could include requesting further information, independent surveys, scientific product testing or audits. 

In the information gathering stage, the regulation requires proof of three things:

1. Traceability: the ability to trace your product to where it originated (its geolocation)

2. Deforestation: the product originates from land where there has been no deforestation or degradation from the cut-off date (31 Dec 2020)

3. Social: the product was produced legally (e.g. no forced labour, no child labour etc)

How can TRACT support you with EUDR?

1.      Information consolidation:

·       Track and visualise your supply chains – we have capability for palm, soy, coffee and cocoa.

·       Validate geolocation data, including farm polygons

·       Analyse farms for deforestation

·       Allow users to find in one place relevant laws by each producing country

·       Organise and save information on the platform to demonstrate due diligence

2.      Risk Assessment:

·       Provide insights on social and environmental risks for country-commodity combinations, including on human rights and deforestation

·       Organise and save your information on the platform.

3.      Risk Mitigation:

·       Provide metrics on risk mitigation

·       Trace and link due diligence numbers over time

·       Help users more easily spot non-compliance

·       Organise and save your information on the platform.

TRACT’s leading global third-party partnerships will help us support companies with all the stages of their due diligence work, including the ability to analyse land for deforestation, degradation and illegality.

TRACT’s platform allows you to share any data you choose securely with your partners.  You can also stop sharing at any time.

TRACT’s solution is representative of industry-aligned thinking – we use metrics and methodologies that have been tested and approved by some of the most experienced companies and NGOs in the food and ag industry.  For our EUDR product, we work directly with 12 companies – both suppliers and producers – to understand the requirements for compliance, the priorities for users and to align on metrics and methodologies needed.

But TRACT is not just an EUDR platform.  It offers wider support and tools that will become essential as more of this kind of regulation comes into force around the world.

So join us!  The more companies to begin using TRACT, the more we can build the best solutions to help your teams and support the food and ag industry.