updated the 17.11.2025
Understanding the European Deforestation Regulation
The EU Deforestation Regulation (EUDR) aims to ensure that products placed on the EU market are not linked to deforestation or forest degradation. It sets clear requirements for companies to prove that their materials are legally sourced and deforestation-free. This regulation is a response to the growing demand for transparent supply chains and targets key commodities known to contribute to forest loss, including cattle, wood, cocoa, soy, palm oil, coffee and rubber.
A central part of complying with the EUDR is being able to trace your materials back to their origin. This is where the Chain of Custody comes in. It’s a system for documenting each step of a material’s journey, from the forest, to the processor, to your supplier, and finally into your product. Unlike other regulations that rely on general supplier declarations, the EUDR requires geo-location coordinates of where the raw material (like rubber or wood pulp) was harvested. This means that brands must work closely with suppliers, and often their suppliers' suppliers, to collect reliable traceability data and share it with EU authorities upon request.
Does the European Deforestation Regulation affect your company?
Yes, if your brand sells products containing leather, rubber, or wood-based materials (like cardboard boxes or hangtags) in the EU, the EUDR likely applies to you. From 30 December 2025, companies must comply with the new due diligence obligations. This includes conducting a risk assessment and submitting a due diligence statement through the EU portal before the products are placed on the EU market or exported.
For SMEs, the deadline is 30 June 2026, but if you supply to larger companies, you may already be asked to provide relevant documentation.
The regulation doesn’t distinguish between EU-based and non-EU sellers. If you place products on the EU market, you're responsible for ensuring that they meet the EUDR criteria.
How to work with the European Deforestation Regulation?
Start by identifying which of your products may fall under the EUDR. For the fashion industry, this could include leather, rubber, or packaging made of paper, cardboard, or wood. Many brands also use viscose, a wood-based fibre. While viscose is not directly listed in the regulation, it’s wise to prepare for future traceability needs.
To comply, companies must follow a Due Diligence System (DDS), here’s how:
- Collect the right data: Gather details on what the product is, where it came from, and who supplied it. You’ll need geolocation data of the land where the raw material was grown or raised. The chain of custody plays a significant role here.
- Assess the risk: Check if there’s a risk of deforestation or illegal sourcing. Consider the country of origin, supply chain complexity, and any warning signs like corruption or missing info - check the list here.
- Act on the risk: If you can’t confirm it’s low risk, you must reduce it, for example by asking for more documents, doing audits, or supporting suppliers in improving traceability.
To reduce the administrative burden, the EU introduced simplified rules for low-risk countries. For example, sourcing from EU Member States comes with fewer due diligence steps. You may also reuse past DDS submissions, report annually instead of per shipment, and assign an authorised representative to help.
How is the EU Deforestation Regulation connected to other initiatives, regulations and laws?
The EUDR supports the EU Green Deal and complements the Corporate Sustainability Due Diligence Directive (CSDDD), which also requires supply chain risk management. While the CSDDD focuses broadly on social and environmental risks throughout the value chain, the EUDR is narrower, it specifically targets deforestation and requires detailed product-level documentation.