🌱 Regulation watch: EUDR
Get up to speed and start to prepare for the EU Deforestation Regulation
Happy Monday! Every Monday we suit up and get serious - digging into a climate topic, rounding up the past week’s Good(s) News and sharing updates from across FTF, so you’re never out of the loop.
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> In Focus
European Union Deforestation Regulation
by Indira Ardiyatna
If, like us, you are just starting to get your head around EU’s CSRD, and maybe even Ecodesign for Sustainable Products Regulation (ESPR), then you may be slightly nervous about yet another new set of rules and reporting guidelines heading down the regulatory pipeline. But we can’t be mad! We need all the regulatory help we can get (we see you, Green Deal!) if we want to do the Lorax proud and protect our forests. So this week we want to prepare you for the incoming European Union Deforestation Regulation. This regulation replaces and expands upon the European Timber Regulation. Who will it affect and what will it entail? Let’s dive in…
Protect our forests!
Commonly referred to as the EUDR, this initiative is designed to reduce the EU market’s contribution to deforestation. Forests act as vital carbon sinks that absorb significant amounts of carbon dioxide (CO2) and support diverse ecosystems. Sadly, between 1990 and 2020, the world lost over 420 million hectares of forest. There are many causes for this, including land clearing for infrastructure projects, and the expansion of land that is required to increase farming activities and plantations to meet the demands of various commodities.
The types of commodities that are in the scope of the EUDR’s relevant commodities are cattle, cocoa, coffee, oil palm, rubber, soya and wood. The derived products of these commodities are also included, such as leather, chocolate, tyres or furniture. The selection of these commodities is based on their impact, indicating that agricultural expansion is the primary cause of deforestation.
What does EUDR entail?
EUDR will take effect on 30 December 2024. From then on, this regulation will apply for any organisation that has trading products associated with deforestation within the EU (using commodities as mentioned above) - whether as an operator putting the product on the market or as a distributor of the products. While the majority of businesses have to adapt to the new rules in December, SMEs are granted a longer adaptation period, with a deadline on 30 June 2025.
Commodities will be benchmarked into high, medium, and low risk categories, to ensure their products are not linked to deforestation or forest degradation activities. This includes disclosing information on the farms or plantations where products were grown, allowing EU authorities to confirm how in-line the activities are with the deforestation-free requirements.
How can businesses prepare?
By adapting their supply chain. Here are some steps you can take:
Map your supply chain: Understanding the origin of your product is crucial for compliance with the regulation's geolocation requirements.
Enhanced due diligence processes: Strengthen your due diligence systems to trace products back to their source, to ensure that deforestation-free practices are followed throughout the production process.
Collaborate with suppliers and other supply chain stakeholders: Work closely with suppliers to ensure transparency and compliance.
Don’t know where to start? We’ve got you!
Start with our MEASURE database. Lucky for you, FTF has compiled a comprehensive list of companies that can help you prepare for the EUDR requirements. You can find companies like Authenticate and Osapiens that provide digital tracking tools to map your supply chain, or ones like TrueFootprints and Anthesis Group, consultancy partners that can guide you through the EUDR preparation journey.
> Follow up with…
Guide: EUDR Step-by-Step Guide for Business, WWF
Fact Sheet: Streamline your EUDR compliance journey, FSC
> Last week in consumer goods x climate
The Good(s) News
Up and coming brands…
Bigger organisations…
⭐ Lidl Nederland announced its new product for the Dutch market, combining 60% minced beef and 40% pea protein, claiming to be the first supermarket in the country to offer partly plant-based minced meat option. This has a 37.5% lower carbon footprint while providing customer with a familiar taste.
⭐ Patagonia announced their commitment to mitigate deforestation by sourcing its packaging fibres elsewhere, by joining Canopy's #Pack4Good initiative. They plan to utilize non-forest alternative fibres and agricultural waste, hoped to avoid trees altogether and alleviate pressure on global forests.
⭐ Schneider Electric and GR3N SA announced their partnership to develop the ‘first’ open automation system for advanced plastic recycling. It is set to reduce human error by 40% and engineering costs by 30%. Reportedly, the process results in packaging and textiles with comparable quality to those made of virgin plastics, while simultaneously unlocking circularity for hard-to-recycle plastics and handling a higher amount of impurities compared to existing technologies.
Want good news sooner? We post our top 5 stories every Friday on LinkedIn! If your CPG brand has good news to share, let us know.👇
> In case you missed it
Want more? Here’s what’s happening across FTF at the moment…
Lexi has curated the events you need to know about for September over on our LinkedIn page. Take a look at all events for September, and add yours, on our events database!
We interviewed Rebecca (Dayoung) Ghim, Founder of The Ferm in last week’s edition of The Check Out. Catch up to find out how she has been using food waste from her local markets to tantalise our taste buds and nurture our guts.
Want more? Hang tight for ‘The Check-Out’ this Thursday for the latest brands in our basket. In the meantime, if you have any topics that you would like us to dig into, ping us an email on info@followingthefootprints.com to say hi!
Much love,
Team FTF