How to Handle EUDR Requests in the Supply Chain: A Guide for Sustainability and Compliance Leaders

The EU Deforestation Regulation (EUDR) is a transformative step in the EU's commitment to eliminating deforestation from supply chains. For businesses involved in the trade of high-risk commodities like palm oil, soy, coffee, rubber, and beef, the regulation demands strict traceability and proof that products entering the EU market are not linked to deforestation after December 31, 2020. Meeting these requests is vital not only for compliance but also for maintaining credibility in an increasingly sustainability-conscious market. This guide offers a detailed roadmap for sustainability and compliance leaders, breaking down the necessary steps, policies, and documents you need to collect to ensure compliance with EUDR.

What Are EUDR Requests and Why Are They Important?

EUDR requests typically come from your customers, business partners, or regulatory bodies, asking for proof that the commodities you sell are deforestation-free. These requests often include:

• Geolocation Data: GPS coordinates that pinpoint the exact location of the farms or plantations where the commodity is sourced.
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• Traceability Information: Documentation that tracks a product from its origin to its destination, demonstrating its deforestation-free journey.
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• Certification Proof: Sustainability certifications that validate the product’s compliance with environmental standards, such as RSPO (Roundtable on Sustainable Palm Oil) or FSC (Forest Stewardship Council).
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• Risk Assessment Reports: Reports outlining how deforestation risks are assessed, managed, and mitigated within your supply chain.

Step 1: Map Your Supply Chain – The Foundation of Compliance

The first and most critical step in complying with EUDR is understanding and mapping your supply chain. Without knowing where your products come from, you cannot prove that they are deforestation-free. A supply chain map allows you to trace every product, from farm to factory to the final consumer, ensuring full transparency.

How to Map Your Supply Chain

1. Engage Suppliers: Start by directly communicating with your suppliers to collect data on production practices, sourcing, and geolocation. For example, a soy supplier in Brazil provides GPS coordinates for its farms, verifying that these farms have not been involved in deforestation since the EUDR cutoff date (December 31, 2020).
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2. Leverage Satellite Tools: Use satellite imagery tools like Global Forest Watch and Satelligence to validate the information provided by your suppliers. These tools can help you assess whether any of the farms or plantations are located in regions at risk of deforestation, particularly in regions like Southeast Asia for palm oil or Latin America for soy.
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3. Document Every Step: Ensure that every stage in the product’s journey is documented, from farm to transport and processing plants. This step is especially important for commodities with complex supply chains, like cocoa, where smallholder farmers and large plantations are often involved in different stages of the process.

What Documents to Collect:

• Supplier Sustainability Policies: These formal documents should outline your suppliers' commitment to environmental sustainability, including deforestation-free sourcing and adherence to relevant sustainability standards like RSPO or FSC.
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• Geolocation Data: Request GPS coordinates for farms, plantations, and any intermediate facilities. This data ensures full traceability, which is critical for compliance.
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• Certification Documents: Obtain copies of sustainability certifications like RSPO for palm oil or FSC for timber, confirming that your suppliers meet international environmental standards.

Step 2: Collect and Organize Traceability Data

Once you have mapped the supply chain, the next step is to collect all necessary traceability data. Having the right data is crucial for responding quickly and accurately to EUDR requests. This includes gathering geolocation information, certifications, and audits that verify your suppliers' adherence to deforestation-free practices.

What Data to Collect

1. Geolocation Data: This is the primary data needed to prove the origin of commodities and ensure they are sourced responsibly. For example, a palm oil producer in Indonesia should provide GPS coordinates that pinpoint the exact location of their plantations, which can be cross-checked with satellite data to confirm that no deforestation occurred since 2020.
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2. Sustainability Certifications: Obtain RSPO, FSC, or Rainforest Alliance certifications from your suppliers to confirm that they are meeting industry standards for sustainability. For example, a coffee supplier in Colombia must provide Rainforest Alliance certification to show that their coffee is sourced from deforestation-free regions.
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3. Audit and Compliance Reports: Collect third-party audit reports that verify your suppliers’ compliance with sustainability standards. These reports should cover aspects such as land use, sourcing practices, and adherence to the sustainability certifications they hold.
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4. Chain of Custody Documents: These documents provide evidence that products have been traced through every step of the supply chain without being mixed with non-compliant products. For example, a coffee supplier might provide shipping invoices and transport records, showing that their rubber is sourced from deforestation-free plantations.

How to Stay Organized

1. Centralize Your Data: Store all your compliance data in a cloud-based platform or traceability software to facilitate easy access and sharing when responding to EUDR requests. This will also ensure that all your documents are up-to-date and securely stored.
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2. Standardize Data Formats: Ensure that all documents are in standardized formats. For example, use CSV files for geolocation data and PDFs for certification documents. This will make it easier to share the data with partners and customers.
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3. Track Expiry Dates: Sustainability certifications typically have expiration dates. Set up a system to track certification validity and renew them before they expire to avoid compliance issues.

Tip: Too many documents scattered across different platforms can make it difficult to stay organized and find what you need. With Passionfruit's Knowledge Hub, you can centralize all your data in one place. Seamlessly store, manage, and organize your documents, ensuring they are always easily accessible when you need them most.

What Documents to Collect:

• Sustainability Certifications: Ensure you collect valid and current certifications such as RSPO, FSC, or Rainforest Alliance.
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• Audit Reports: Obtain third-party audit reports that confirm compliance with sustainability practices and deforestation-free sourcing.
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• Chain of Custody Records: Ensure all transport and batch-tracking documents are collected to prove that products are deforestation-free.

Step 3: Build Strong Relationships with Suppliers

A key part of complying with EUDR is engaging with your suppliers to gather the necessary documentation and create long-term partnerships based on transparency and sustainability.

How to Engage Suppliers

1. Educate Suppliers: Many suppliers, especially those in developing countries, may not fully understand the specifics of EUDR compliance. Provide educational resources that explain why traceability is critical and how they can meet EUDR standards. For instance, this could be done on by call, webinars, meetings, and more that can get them to understand.
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2. Offer Support and Incentives: Consider offering financial incentives or long-term contracts for suppliers who are willing to meet your sustainability standards and provide necessary traceability data.
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3. Collaborate on Data Sharing: Use a collaborative data-sharing platform where suppliers can upload their geolocation data, certification documents, and audit reports. This ensures that your suppliers are actively engaged in providing the necessary compliance data.

What Documents to Collect:

• Supplier Codes of Conduct: These documents should outline the supplier’s environmental obligations, including deforestation-free sourcing and sustainability practices.
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• Training Materials: Provide materials that help suppliers understand the specific requirements of EUDR and how to comply.
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• Contracts and Agreements: Include clauses on sustainability and traceability in supplier contracts, ensuring that compliance with EUDR is mandatory.

Step 4: Conduct Comprehensive Risk Assessments

Risk assessments help you identify high-risk areas in your supply chain and take proactive steps to mitigate deforestation risks, especially in high-risk regions.

How to Perform Risk Assessments

1. Identify High-Risk Areas: Use tools like Global Forest Watch or Satelligence to evaluate regions with high deforestation rates. For example, palm oil plantations in Southeast Asia or soy farms in South America may carry higher risks.
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2. Evaluate Supplier Practices:  Assess your suppliers' sustainability practices. For example, a beef supplier in Brazil may be operating near the Amazon, an area known for high deforestation risk.
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3. Develop Mitigation Plans: For high-risk suppliers, implement stricter monitoring, require additional certifications, or switch to suppliers with lower risks of deforestation.

What Documents to Collect:

• Risk Assessment Reports: Reports from third-party environmental organizations or internal assessments that evaluate deforestation risks in your sourcing regions.
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• Supplier Risk Profiles: Profiles that assess the deforestation risk of each supplier based on their location and sustainability practices.
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• Mitigation Plans: Documents that outline the steps you will take to reduce deforestation risks, such as alternative sourcing or increased monitoring.

Step 5: Responding to EUDR Requests

Once all necessary documents are gathered, responding to EUDR requests is the final step. Having a streamlined process will ensure that you can act quickly and provide the required information efficiently.

How to Respond to EUDR Requests

1. Be Transparent: If some data is still being collected or verified, be upfront with your customers and partners. Transparency builds trust.
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2. Provide Organized Evidence: Organize your data clearly and concisely. This includes geolocation data, certifications, audit reports, and chain of custody documents.
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3. Proactively Communicate: If there are gaps in the data, explain your plan to address them. Most customers will appreciate a proactive approach.

What Documents to Collect:

• Standardized Response Templates: Templates for responding to EUDR requests will ensure consistency and speed when responding to similar requests.
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• Compliance Statements: These should outline your company’s commitment to compliance with EUDR and other relevant sustainability standards.

Step 6: Leverage Technology for Efficiency

Using technology can streamline the process of compliance and make managing data easier.

How Technology Can Help

1. Automate Data Collection: Use AI tools to automatically match geolocation data with satellite images, ensuring the sourcing areas are deforestation-free.
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2. Centralized Data Management: With Passionfruit, you can effortlessly store and access all your important documents in one centralized location. Whether you need to find something quickly or share it with your team and (or) suppliers. Passionfruit makes it simple and efficient to keep everything organized and easily accessible.
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3. Predictive Analytics: Tools like Satelligence provide predictive insights about deforestation risks, enabling you to act proactively.

What Documents to Collect:

• Technology Usage Policies: These documents ensure that your technology platforms for data collection and storage are secure and comply with regulations.
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• Data Management Plans: Plans outlining how your company will store and manage compliance data to ensure security and accessibility.

Download Our EUDR Compliance Checklist

To make the process of meeting EUDR requirements easier, we’ve created a comprehensive EUDR Compliance Checklist. This downloadable resource will guide you through every essential step, from gathering necessary documents to maintaining traceability and ensuring your supply chain is fully compliant with the EU’s deforestation-free standards. Use it as a quick reference to stay organized and ensure you don’t miss any crucial steps in your journey toward full compliance.

Conclusion

Handling EUDR requests efficiently requires a thorough understanding of the policies and documents necessary for compliance. By gathering supplier sustainability policies, geolocation data, audit reports, certifications, and risk assessments, you can ensure that your products meet the EU’s stringent deforestation-free requirements. Engaging suppliers, organizing traceability data, and leveraging technology will help you manage the complexities of EUDR compliance, ensuring your business operates transparently and sustainably. Start implementing these strategies today to not only meet regulatory standards but to become a leader in sustainability and responsible sourcing.

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