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It also includes initiatives to promote the circular economy, restore ecosystems and reduce pollution. The Green Deal is intended not only to strengthen environmental protection, but also to drive economic growth through green technologies and sustainable investments. This plan is central to EU policy and aims to achieve a sustainable, inclusive economy.
EUDR - What is it?
The EUDR (EU Deforestation Regulation) is a regulatory measure of the European Union that aims to combat deforestation and forest degradation through trade. It requires companies that import products onto the EU market to prove that their supply chains do not cause deforestation. To this end, companies must make their supply chains transparent and ensure that their products are produced legally and without deforestation. This regulation is part of the EU Green Deal and is to be fully implemented from the end of 2024.
Who is affected?
The focus is on extensive due diligence obligations (including proof of areas of origin, ensuring freedom from deforestation and compliance with local laws). For companies, this means that they must closely examine the supply chains for certain product groups. The preliminary focus of the EUDR is on coffee, cocoa, cattle, palm oil, soy, rubber and wood, as well as a large number of derived products. The requirements include leather goods, tires, seals, chocolate, roasted coffee, glycerine, soybean oil, plywood, furniture and various paper and print products.
Non-SME market participants and retailers have until 30 December 2024 to review their global value chains and implement the due diligence obligations required by the EUDR. An extended deadline of 30 June 2025 applies for SME market participants.
Automated solutions in SAP with T.CON
The EUDR requires technical and organizational solutions for traceability and transparency in supply chains to ensure compliance. Companies face the challenge of implementing comprehensive data integration and analysis to prove the origin and sustainability of their products.
Contact us to jointly develop solutions to implement the EUDR and discuss the possibilities in your SAP system.
Would you like more information? Contact our expert Christian Jung and discuss this and other topics such as the CSRD reporting obligation and the EU Taxonomy Regulation. Our webinar recording “The challenge of sustainability - digitalization as a way out” provides a good overview of laws and suitable software solutions.
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