The EUDR is coming: Are you ready?

Starting in December 2025, companies dealing in cattle, cocoa, coffee, oil palm, rubber, soy, and timber will need to comply with the European Deforestation Regulation. Failure to comply might result in steep penalties for delinquent companies.

Home
Resources
ESG academy
Recent articles
The EUDR is coming: Are you ready for it?

The EUDR is coming: Are you ready for it?

The EU Regulation on Deforestation-Free Products (EUDR) is more than just another compliance challengeit's a transformative shift in how supply chains will be governed across the globe. Adopted in 2023 and entering full force by 2026, the EUDR is a central part of the European Green Deal, aimed at eliminating the EU’s contribution to global deforestation.

And the countdown has already started.

What is the EUDR?

The EUDR targets the EU’s environmental footprint by regulating the trade of seven high-risk commodities linked to deforestation:

Cattle, cocoa, coffee, oil palm, soy, timber, and rubber.

According to the World Resources Institute, these commodities are responsible for 57% of all global deforestation and over 80% of tropical deforestation. The EU alone is linked to more than 172,000 hectares of embodied deforestation annually through its imports.

Torrin Viergever Sustainability Researcher

Sustainability Research Expert

BSc in Political Science and MSc in International Development Studies by the University of Amsterdam, I am a Sustainability Researcher for Good Growth Collective. I provide up-to-date research on sustainability trends, legislation and innovations to keep our team informed and our clients compliant

What are the deadlines to comply?

The EUDR has two key deadlines based on company size. Large companies must begin submitting Due Diligence Statements by December 30, 2025. Whereas Small and medium-sized enterprises (SMEs) must comply starting June 30, 2026. These deadlines may seem far off, but the data requirements and compliance infrastructure needed are complex and time-consuming to build.

What does compliance involve?

Companies must act and submit a Due Diligence Statement containing:

Operator information: including company name, address, and EORI number if applicable.
Product specifications: such as HS codes, trade/scientific names, and volumes.
Production traceability: country of origin and precise geolocation data of the land where goods were produced.

In addition, companies must assess and mitigate deforestation risks across their supply chains. Authorities in EU member states will perform annual audits, taking into account country-level risk classifications.

What are the risks of non-compliance?

Non-compliance can carry severe penalties. Companies who are found to have contributed to deforestation in their supply chains are liable to face fines of up to 4% of annual turnover, confiscation of goods, exclusion from the EU market.

Good Growth Collective can help

At Good Growth Collective, we recognize that for many businesses, the greatest challenge isn’t willingness it’s lack of knowledge and preparedness. That’s why we’re launching a series of posts and resources to demystify the EUDR and support your journey to compliance.

Now is the time to act. Start assessing your supply chain, identifying gaps, and building the systems needed to meet these new requirements. Compliance isn't just about regulation it's about future-proofing your business for a sustainable, deforestation-free world.

Stay tuned. We’re here to guide you through it.