Navigating EUDR: Opportunities and challenges for businesses

What’s at stake? Understanding the EUDR’s impact on businesses

From 30 December 2025, the European Deforestation Regulation (EUDR) requires companies all over Europe to demonstrate that the products they bring into the EU market within the commodity categories of coffee, cocoa, timber, palm oil, rubber, soya, wood and cattle are deforestation free. Companies must also be able to demonstrate that these products have been produced in accordance with the national legislation in the country of origin, including labor rights, rights of indigenous people, and human rights protected under international law.

Whilst that may sound fair and reasonable, and perhaps even a good idea, to many European citizens and consumers, it represents an unprecedented challenge for businesses. But the good news is: it may also hold great potential. A potential that goes beyond quick wins, low-hanging fruit and short-term cost-cutting, and towards creating increased and lasting structural resilience in global supply chains. But how do we get to that upside? What does it take to turn a potentially disruptive directive into a strategic advantage for businesses? How does short-term disruption make way for long-term resilience?

The EUDR is arguably the first major regulatory EU-wide attempt to seriously combat deforestation. This fight is urgent as deforestation is a major global driver of both biodiversity loss and climate change — arguably two of the most critical challenges facing our planet today. If society as a whole is able to eliminate illegal deforestation through responsible sourcing of goods and more sustainable consumption, it would represent a significant achievement. However, a major challenge is that today’s global supply chains are so lengthy and complex that sourcing goods more responsibly is often impractical for many companies. Many products within the commodities covered by the directive, particularly those in the mass-market and lower-priced categories, often have limited traceability and are produced and traded according to longstanding practices developed over many years.