As a first step into EUDR compliance, companies need to conduct an analysis of its suppliers by country for origin analysis to first determine if there's any risk of deforestation is the real deal. At its core, the EUDR aims to reduce deforestation and forest degradation globally by ensuring that products sold in the EU are not linked to deforestation.
“We're not only talking wood, we're also talking pulp, packaging and furniture. We're not only talking rubber, but also tires, and not only cocoa, also chocolate. And in terms of palm oil, it's not only the fresh fruit brunches itself, but also the palm chemicals that we put in makeup and that we use in food.”As a result, the companies outside of the EU must work with these requirements as well as compliancy kicks into effect on December 31, 2024.
What exactly are those actions and what data needs to be captured? Taking a look at Article Nine in the EUDR requirements, transactional data within the ERP becomes a top priority. “So the message here is, in order to comply with Article Nine, look at your ERP system as that first foundation to facilitate it,” said Figaroa.While finding pertinent company and supplier data in you ERP system might not sound like too much of a heavy lift, things obviously get a little bit tricky with the most important data set: sustainability.