EUDR Compliance: How companies can overcome data challenges for sustainable supply chains

The New EU Deforestation Regulation (EUDR): A Wake-Up Call for Companies

The new EU Deforestation Regulation (EUDR) comes into effect on December 30, 2025, and presents massive challenges for companies operating in the EU. Its aim is to combat global deforestation by allowing the trade of products such as coffee, cocoa, beef, palm oil, soy, rubber, and wood only if they do not originate from deforested areas or contribute to forest degradation.

Why EUDR Compliance Is Now a C-Level Priority

Companies will be required to carefully document the origins of their raw materials. As a result, supply chain transparency becomes central to any sustainable business strategy. However, many organizations are still unprepared:

According to the report “Data-Enabled Supply Chain Transparency”,
77% of companies consider transparency very important,
but only 31% are satisfied with their current level of supply chain visibility.

This gap presents a significant compliance risk and can also undermine customer and stakeholder trust.

The Key Data Challenges for EUDR Compliance

Limited Visibility Beyond Tier 1
Most companies have visibility only into their direct suppliers.
Only 7% of surveyed organizations know the suppliers of their suppliers (Tier 2 or beyond).
Poor Data Quality and Availability
Over 80% of procurement professionals cite poor data quality and limited accessibility as major barriers to transparency and compliance.
Slow Digital Transformation
Approximately 51% of procurement and supplier management processes remain non-digital.
This results in inefficient workflows, lack of traceability, and a high risk of poor decision-making.

How to Prepare for EUDR Compliance

Accelerate Digital Transformation
Leverage modern tools for supplier management, risk assessment, and documentation.
Digital workflows save time and improve traceability.
Strengthen Supplier Collaboration
Build trust-based relationships and involve suppliers in your sustainability strategy.
Clear requirements and standardized self-assessments help collect data efficiently.
Improve Data Quality
Invest in structured data platforms, automated validations, and AI-based analytics tools.
This improves decision-making and reduces the risk of non-compliance.
Rely on Technology Partners
Specialized software solutions offer modules tailored to ESG- and EUDR-compliant supply chain management.
These tools support risk monitoring and the creation of legally required due diligence statements.

Conclusion: Act Now to Secure Compliance

The EUDR is more than just a regulatory requirement – it’s a wake-up call for sustainable supply chains.
Companies that invest early in digital transparency, data quality, and supplier engagement will not only avoid penalties, but also strengthen their brand and gain a competitive edge.

Now is the perfect time to make your supply chain EUDR-ready.

Frequently Asked Questions about the EUDR

What is the EUDR?
The European Union Deforestation Regulation (EUDR) is an EU law designed to ensure that certain raw materials and their derivatives do not contribute to deforestation. It applies from December 30, 2025.

Which products are affected?
Products such as beef, coffee, cocoa, palm oil, soy, wood, and rubber, including goods made from them.

Which companies are obligated?
All companies that import, trade, or process these products within the EU must comply with EUDR requirements.

What does a “sustainable supply chain” mean in this context?
A sustainable supply chain is traceable, risk-assessed, deforestation-free, and meets ethical and environmental standards.
Transparency and data quality are critical success factors.

How can I prepare?
Start by analyzing your supply chain, digitizing processes, investing in appropriate tools, and building trust-based relationships with your suppliers.

What penalties apply for non-compliance?
Violations of the EUDR can lead to substantial fines, import bans, and reputational damage.