Deforestation, meet transparency

Earth’s forests are enormous sponges soaking up carbon. Deforestation risks exacerbating climate-related catastrophes. EUDR compliance cleans up supply chains.

The EU Biodiversity Strategy is rapidly becoming the benchmark for sustainable business practice. The recently introduced European Union Deforestation Regulation (EUDR) is a cornerstone of that strategy. For global supply chains, it mandates change with wide-reaching benefits. EUDR requires companies to ensure their products are deforestation-free. With strict traceability, due diligence, and reporting mandates, businesses face significant challenges. But the opportunities are equally substantial. This report explores how organizations can navigate EUDR compliance, mitigate supply chain risks, and leverage sustainability as a competitive advantage.

To safeguard the world’s backstop, EUDR was introduced as a way of purging supply chains of products that contribute to deforestation. Brought into force in June 2023, the EUDR aims to ensure businesses are no longer complicit in the degradation of precious resources that support biodiversity and mitigate atmospheric CO2. Under EUDR, all companies importing or placing cocoa, coffee, palm oil, soy, cattle, rubber, wood, and some of their derivatives on the EU market are to ensure these are deforestation-free. To elaborate, EUDR requires relevant companies to: Establish traceability, implement a due diligence systems, and report on the conclusion of the due diligence.

This ambitious EU Deforestation Regulation is comprehensive in its scope, requiring businesses to makes extensive changes in business practices, which need to be implemented before 2025. For economic players, this becomes a top priority. Given the extent and nature of the changes, the work of compliance must begin immediately. For example, built on the principle of strict traceability, EUDR compliance will require the collection of precise information on where commodities originate. As such, a great deal of data will need to be gathered, organized, and shared, including detailed materials characteristics and origins of components. For businesses without the right infrastructure and strategy, compliance will be a daunting prospect.

Our latest Capgemini Invent report provides a detailed description of this new, complex regulation, actionable insights for adopting long-term approaches, investing in robust capabilities, and creating value by powering sustainable sourcing. These are all key success factors in the era of deforestation-free supply chains. The EU Deforestation Regulation will accelerate sustainable change, but it is vital that companies take the right approach to compliance.

Deforestation, meet transparency: How regulation is reshaping global markets

An insightful guide to European Deforestation Regulation compliance, including the risks and how to mitigate them, changes business must make, and the many opportunities that come with transparent and responsible sourcing.

Download the report

Our commitment to compliance

At Capgemini Invent, we recognize the role global businesses play in the global net-zero mission. Moreover, we are committed to helping our clients achieve a vital win-win: Growth through sustainability and socio-environmental impact. Traceability and supply chain reorganization enables businesses to drive insights, optimize operations, and reduce risks and costs. Together, we can make the EU Deforestation Regulation a catalyst for long-term value and environmental responsibility.