In 2020 had already disappeared approximately 420 million hectares of forests around the world, according to the United Nations Organization for Food and Agriculture (FAO). In this context, the european continent is the second largest importer of products related to deforestation. That is why from the European Union wants to mitigate the degradation of the forest world with the implementation of the EUDR (EU Deforestation Regulation).
This policy, adopted with the aim of curbing deforestation and degradation of forests worldwide, establishes stringent requirements for the import and marketing of certain products in the european market. Will be starting the next 30 December for the big companies, and as of 30 June 2025 for smes.
In this way, as manifested Stewards, “more than 30,000 Spanish companies will need to collect the relevant information in order to comply with this regulation before the end of the year, because that in 2025, any company that trades with products associated with deforestation must report these data, regardless of its size.”
Summary of the rules
The standard applies to specific products that are considered high risk for deforestation, such as: palm oil, soy, timber, cocoa, coffee, beef and beef products derived from all of these (for example, chocolate, furniture, wood, paper)
The companies that sell these products in the EU must demonstrate that they are not associated with deforestation or forest degradation, providing evidence that they were produced in accordance with the laws of the country of origin and did not involve the conversion of forests. Therefore, the proportion of the Spanish business fabric that are affected by the regulation must obtain and verify geographic data production of the raw materials they import, as much of its direct suppliers as of the subsequent in the value chain.
If the company fails to comply with the EUDR, can be punished with: fines of up to 4% of annual turnover net of the company in the EU; the temporary exclusion of competitive bidding procedures; and prohibition of the marketing of related products.
Recommendations for Spanish companies
– Develop and improve the traceability systems to ensure that all products can be tracked to its source, ensuring that they are not associated with deforestation.
– Training employees and partners of the supply chain on the requirements of the regulations, and best practices to comply with the same.
– Work closely with suppliers to ensure compliance, conduct audits and promoting sustainable practices throughout the supply chain.
– Maintain communication with stakeholders, including consumers, investors and regulators about the company’s efforts to comply with regulations and to promote sustainability.
The new european regulations on deforestation represents both a challenge and an opportunity for Spanish companies. Although imposes additional obligations and may increase the operating costs, it also offers the opportunity to improve the sustainability and reputation of the companies. By adopting a proactive approach and collaborative, companies can not only comply with regulations, but also to lead in the market of sustainable products, contributing significantly to the fight against global deforestation.
Please contact us if you want to promote a social action programme that will align with the new european regulations in the field of sustainability and lace in your model of social responsibility.
