Due Diligence System with EUDR reporting functionality
Your best in class partner
in meeting EU Deforestation Regulations.
Due Diligence System with EUDR reporting functionality
The EU Deforestation-free Regulation is established to guarantee that certain products and commodities don't exacerbate the degradation of forest ecosystems. Additionally, it aims to cut down on greenhouse gas emissions and bolster biodiversity preservation.
The Purpose
of EU Deforestation-free Regulation (EUDR)
Implications of the EU Deforestation-free Regulation
All operators and non-SME traders involved in introducing or exporting the subsequent commodities to or from the EU market will be affected:
Primary Commodities
Derived Products
palm oil
reinforcing the EU's commitment to environmental sustainability and forest preservation.
This regulation seeks comprehensive oversight over a vast array of products
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29 June 2023
EUDR entered into force.
30 December 2024
Deadline for operators and traders to comply. The Commission will also present a risk classification for countries.
29 June 2024
30 June 2025
Impact assessment for potential scope expansion is due.
SMEs become subject to the obligations.
Non-compliance may incur
monetary sanctions up to 4% of total revenue
coupled with substantial harm to brand reputation.
To ensure products align with the deforestation-free and legality standards set by the Regulation, operators need a holistic approach.
This require a Due Diligence System in place, ensuring that the products or commodities they deal in do not contribute to deforestation, and reporting to the EUDR IS.
What does it mean for EU company:
Setting Up Suppliers data
& Risk Assessment:

Gathering plots-of-land / polygons geodata form the suppliers

Gathering detailed information on product sources and suppliers

Evaluating risks associated with deforestation, local legistations and business sustainability

Taking steps to minimize those risks
Setting Up Project Traceability:

Each product delivery whereabouts (country of production, supply logistics, contractors)

Plots-of-land related to the delivery of production sites with batch data (production time and date)

Storage of the history data and activity logging (integrations, user's activity, reporting events)
Setting Up Suppliers data
& Risk Assessment:

Geolocations check against GIS

Due Diligence Statement
preparation and report

Downstream partners notification

Authorities reports
(regular and on-request)

EUDR Challenges
#1 Challenge

and strict traceability

Sourcing raw material will likely be more challenging due to the current and potential supplier’s ability to comply with the regulation. Due diligence system should ensure geotags management and source transparency from each plot-of-land.

Evidence of geolocation by geotags and timestamps

Plot of land/polygon/stamp approach

Production at this plot-of-land is legitime

Supply chain transparency

should be proved

#2 Challenge

Risk assessment

and mitigations

Along with the geotags, for each order came to EU market, the risk assessment should be performed by the company. All supply chain routes where there is a risk of non-conformance should be elaborated, assessed and mitigated. Only no and negligible risks are allowed.

Conformance and trust to the information about the geolocations.

Risks of mixing the product on different routes, so each route to be assessed.

Country risk level is important

Yearly reassessments

#3 Challenge

and strict traceability

Company suppliers should provide full information about the plots of land and routes how the product is delivered to EU. Information should be verifiable and provided along with the Annex forms.

The company is legally responsible for verification and reporting of this information.

Plots of land, and any proof

of evidence (i.e. photos

with geotags and timestamps)

Production time & date

Delivery routes in the supply chain

Proofing documents:

invoices, certificates, etc.

Risk assessment and mitigations
Each plot-of-land has risk-assessment data that proves the risk-assessment requirements according to Article 10.

Each plot of land has connection to all orders that had this supply location. Data is kept in logs.
Location data and historical data can be downloaded or forwarded to the regulation authorities upon their request.
#2 Challenge
Risk assessment and mitigations
Each route in Supply chain has risk-assessment data that proves the risk-assessment requirements according to Article 10.
#2 Challenge
Risk assessment and mitigations
Route data + Location data makes unique set of assessment document for each Due Diligence.

Due Diligence statement can not be reported if the assessment has unverified locations or routes.
#2 Challenge
Risk assessment and mitigations

Risk assessment module may include check-lists related to each location / route risks, documents and mitigation steps.

#2 Challenge
Data collection from suppliers
Company should work closely with its coffee bean suppliers to ensure that they understand and comply with deforestation-free sourcing practices. Collaboration and transparency with suppliers are critical aspects of compliance.
#3 Challenge
Scenario 1.
Partner uses DD system

For farmers
Mobile App for farmers
For upstream partners
Additional fields to annex form
Scenario 2.
Partner uses own system

API integration
Annex forms
Mobile Apps for Farmers
Geolocation and Strict traceability
Each delivery can be traced up to the plots-of-land involved in the delivery.

Along with existing data in Annex Form, the company supplier will have to choose the plots of land (locations under the Area), add production dates and other information, according to Article 9, when filling out the order.

Due Diligence system will keep all records, prepare and send the Due Diligence Statement
#1 Challenge
a state-of-art Due Diligence System
with EUDR reporting functionality
Master Data base includes suppliers, locations, routes, users.
Vendor-managed data regarding order information, locations, routes and warehouses update per each order.
Special tool to assess
each component of the supply chain:
Location (plot-of-land), warehouse, route, supplier.
All orders coming from ERP (or manually) will be added here.Each order consists of several components of the supply chain used fot the specific delivery.
Convenient way to visually check locations information, orders information, route information in the specific order, or separately.
All data and events that were received or sent between the API with counterparties, suppliers, GIS, etc.
All operational data is kept for 5 years, incluiding DDS, risk assessment changes, user activity, etc., building full backward traceability.
DDS reporting (regular reporting functionality)
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