Deforestation Regulation (EUDR) – What does the EU's Deforestation Regulation mean for companies?

What is the EU Deforestation Regulation (EUDR)?

EUDR (EU Deforestation Regulation) is EU legislation that replaces the earlier EU Timber Regulation and expands the scope of regulation to cover several different product groups.

The regulation applies especially to products and raw materials that may be linked to deforestation, such as:

• wood and wood products

• coffee

• cocoa

• soy

• palm oil

• beef

• rubber

Companies must be able to demonstrate that products are deforestation-free, meaning they have not been produced as a result of deforestation after a certain date.

What does EUDR require from companies?

EUDR introduces new requirements for supply chain data and product traceability. Companies must be able to collect and manage accurate product data and provide it to authorities when needed.

Key requirements include:

• product origin and supply chain

• geographical origin (geolocation data)

• production site information

• risk analysis related to deforestation

• due diligence reporting

• product traceability throughout the entire supply chain

Without centralized data management, collecting and maintaining this information can be extremely labor-intensive for companies.

Why does EUDR make product data management critical?

EUDR is not only about responsibility, but also about data management and traceability. Companies must be able to combine information from multiple different sources:

• from suppliers

• from production facilities

• from certificates

• from logistics data

• from product data and material compositions

When data is scattered across different systems, Excel files, or suppliers, meeting EUDR requirements quickly becomes complex.

For this reason, for many companies a PIM system (Product Information Management) is a key solution for managing product data.

Why is a PIM system important for EUDR requirements?

A PIM system is designed to collect, manage, and enrich product data from one place. This makes it a natural tool for regulatory requirements such as EUDR.

With a PIM system, companies can:

• centralize all product data in one place

• link supplier responsibility and origin data to products

• manage material compositions and certificates

• ensure data accuracy and up-to-dateness

• share product data with different systems and stakeholders

This makes it possible to manage EUDR-related data systematically.

Summary: EUDR makes product data a strategic resource

The Deforestation Regulation (EUDR) significantly increases companies’ responsibility for supply chain transparency and product data management. Companies must be able to verify product origin and provide reliable data to authorities as well as customers.

This makes centralized product data management even more important. When product data, responsibility data, and supply chain information are managed in one place, meeting EUDR requirements becomes significantly easier and more reliable.

FAQ – Frequently asked questions about EUDR

When does EUDR enter into force?
EUDR starts applying to large companies in December 2024 and to smaller companies later after a transition period.

Which products does EUDR apply to?
The regulation applies especially to products linked to deforestation, such as wood, coffee, cocoa, soy, palm oil, and beef.

What do companies need to do because of EUDR?
Companies must collect information about product origin, conduct a risk analysis, and be able to verify that products are deforestation-free.

Why is EUDR related to product data management?
Because the regulation’s requirements are based on data: origin information, supply chain data, and certificates.

How can Pimmix help with EUDR requirements?

Pimmix is a product information management platform that helps companies collect, manage, and combine product data, responsibility data, and supply chain information in one place.

With Pimmix, companies can:

• link supplier responsibility data to products

• manage material compositions and certificates

• automate data collection from different systems

• ensure that product data is always up to date

• share the required information easily with different stakeholders

This makes it possible to manage EUDR-related data in a centralized and efficient way.

Markus Rahkonen

Co-founder

"Get in touch and we will show you how Pimmix can help your company manage product data related to EUDR requirements and build transparent supply chain data."

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