EUDR key challenges:
What are the potential benefits and opportunities associated with implementing sustainable practices in your company?How do you source, verify information in your due diligence process?How do you convey information to stakeholders in the supply chain?How can due diligence processes be streamlined and facilitated and suppliers effectively monitored through the entire chain down to the source to ensure compliance?What measures should be taken to track harvested timber with accurate geo-location and obtain evidence of deforestation and compliance status of each supplier throughout the supply chain?How can risks associated with non-compliance with EUDR obligations be mitigated and prevented?
What are the potential benefits and opportunities associated with implementing sustainable practices in your company?How do you source, verify information in your due diligence process?How do you convey information to stakeholders in the supply chain?How can due diligence processes be streamlined and facilitated and suppliers effectively monitored through the entire chain down to the source to ensure compliance?What measures should be taken to track harvested timber with accurate geo-location and obtain evidence of deforestation and compliance status of each supplier throughout the supply chain?How can risks associated with non-compliance with EUDR obligations be mitigated and prevented?EUDR implementation guide
EUDR implementation guide
How does the TimberID Platform support processes in achieving compliance?
What actions need to be taken?
Download EUDR implementation guide and learn more.
What actions need to be taken?
Download EUDR implementation guide and learn more.
EUDR implementation guide
Due-Diligence
Due-Diligence
Each company in the supply chain and clearly an Operator (EUDR classification) has the following obligations in carrying out due diligence processes to collect data and document information on:
Suppliers,geolocation of the origin of the raw material, geolocation coordinates of the wood source
evaluating and verifying the information gathered implementing risk assessment, effective risk
mitigation measures conducting audits in questionable cases.
The above actions should respond to the regulatory requirement to provide evidence of the source, geolocation provenance of the materials.
Full documentation must be kept for 5 years.
The Competent Authority of each EU Member State has the right to carry out audits within the EU.
Suppliers,geolocation of the origin of the raw material, geolocation coordinates of the wood source
evaluating and verifying the information gathered implementing risk assessment, effective risk
mitigation measures conducting audits in questionable cases.The above actions should respond to the regulatory requirement to provide evidence of the source, geolocation provenance of the materials.
Full documentation must be kept for 5 years.
The Competent Authority of each EU Member State has the right to carry out audits within the EU.
Due-Diligence Statements
The EU Traces Information System, provided by the European Commission, serves as a central reporting and documentation system. The system requires Operators and large traders in the EU to upload information, issue new DDS due diligence statements and integrate reference numbers with existing DDS statements downstream.
DDS declarations apply to each timber product transaction entering the market by HS codes, according to the list of products set out in the Annex to the EUDR.
For non-EU operators, the platform may serve as a one-stop data traceability centre, enabling platform users to meet compliance benchmarks and gain access to the EU market.
Risk Assessment / Mitigation
Risk Assessment / Mitigation
Risk Assessment
Based on the information and documentation gathered at the level of the countries of provenance, at the level of the suppliers and taking into account the nature of the transaction itself, companies, Operators, carry out a risk assessment to determine whether there is a risk that the relevant products intended to be placed on or exported from the EU market are non-compliant.
Assessment of the risk of non-compliant products entering the supply chain.Assess the risk of mixing with products of unknown origin or from high or standard risk countries.Verify and analyse the information collected according to the relevant documentation.
Risk Mitigation
Before the relevant products are placed on the EU market or exported from the EU, the business entity must implement risk mitigation procedures and specific measures that effectively address the risks and reduce them to a level that is non-existent or negligible.
Effective risk mitigation measures may include:
Collecting additional information, data or documents from and about suppliers.Conducting independent surveys or audits.Verifying transactions and provenance through measures such as physical traceability.Operators must establish policies, controls and procedures that are both appropriate and proportionate to mitigate and effectively manage the identified risk of non-compliance for a product. These may include:
State-of-the-art methodologies for risk management, reporting, record keeping, internal controls and compliance management.An independent audit function to review the effectiveness of internal policies, controls and procedures.Risk assessments and risk mitigation procedures and measures must be thoroughly documented, reviewed at least annually and provided to competent authorities upon request, and made available to downstream customers.
Compliance Documentation
Compliance Documentation
A data flow system is required for the collection and processing of data and the collection and creation of due diligence statements. In addition to the standard data required by the EUDR, the nature of this documentation can vary considerably depending on the specific risk context in each country.
Data on forest area and geolocation, as well as data on harvesting dates.Data on companies and forest owners involved.Data on permits and certificates.Transaction delivery document specifications.Others to be adjusted.
Data must be verifiable by Competent Authorities and suitable for customer audits along the full supply chain.
Data on forest area and geolocation, as well as data on harvesting dates.Data on companies and forest owners involved.Data on permits and certificates.Transaction delivery document specifications.Others to be adjusted.Data must be verifiable by Competent Authorities and suitable for customer audits along the full supply chain.
Limiting Access To Data Protection
Limiting Access To Data Protection
In order to address the concerns of stakeholders throughout the supply chain, the data flow system should facilitate careful processing of data, including options for selective sharing of information. Information should not be broadly distributed, but rather distributed on a strictly need-to-know basis.
Ensuring data privacy is most important and plays a key role in choosing the right solution, software. However, all relevant information required to fulfil due diligence obligations must be readily available and accessible.
Ensuring data privacy is most important and plays a key role in choosing the right solution, software. However, all relevant information required to fulfil due diligence obligations must be readily available and accessible.
Data Processing
Data Processing
The information gathering phase is the most labour-intensive aspect of the due diligence process. Done manually, it is prone to mistakes and human error. This highlights the importance of establishing and maintaining robust digital systems for data collection, storage and processing, along with consistent reporting and record-keeping practices.
Digitisation and integration of supply chain stakeholders with digital workflows is essential to simplify processes, increase efficiency and minimise the risk of human error. Adopting a digital solution, dedicated software, can also improve record keeping and documentation, more effectively ensuring compliance with regulatory documentation requirements.
Digitisation and integration of supply chain stakeholders with digital workflows is essential to simplify processes, increase efficiency and minimise the risk of human error. Adopting a digital solution, dedicated software, can also improve record keeping and documentation, more effectively ensuring compliance with regulatory documentation requirements.
Authentication Of Provenance
Authentication Of Provenance
In low-risk countries, documentation of transactions is sufficient, but does not limit liability of the Operator for possible non-compliance in any form. In the contrary, verification of the origin of timber and timber products becomes mandatory in scenarios where there is a tangible risk of mixing timber from legal and illegal sources. It is important to recognise that documentation is always based on the level of the individual transaction.
In high-risk environments, the implementation of additional physical traceability measures (such as Timber ID) is crucial to ensure and obtain proof of origin to source, geolocate the forest plot, and verify.
Process automation is essential to ensure accuracy and control of data flows and to effectively manage potential risks.
In high-risk environments, the implementation of additional physical traceability measures (such as Timber ID) is crucial to ensure and obtain proof of origin to source, geolocate the forest plot, and verify.
Process automation is essential to ensure accuracy and control of data flows and to effectively manage potential risks.
Geo-Spatial Data
Geo-Spatial Data
Geolocation plays a key role in excluding deforestation, forest degradation and potential illegal sources. Under the EUDR, the geospatial data requirement states that:
A forest plot of less than 4 hectares must have a point geolocation.Forest plot exceeding this size require polygon coordinates.Checking a forest plot using satellite imagery is a valuable risk mitigation measure, especially when it includes a thorough analysis beyond the occurrence of tree cover, allowing an accurate report to be performed for reference 2020.
The implementation of a digital platform and mobile app will streamline the recording of forest plots and related information, allowing forest owners to enter data directly. This approach increases the accuracy and efficiency of data collection, helping to maintain compliance with regulatory requirements.
A forest plot of less than 4 hectares must have a point geolocation.Forest plot exceeding this size require polygon coordinates.Checking a forest plot using satellite imagery is a valuable risk mitigation measure, especially when it includes a thorough analysis beyond the occurrence of tree cover, allowing an accurate report to be performed for reference 2020.The implementation of a digital platform and mobile app will streamline the recording of forest plots and related information, allowing forest owners to enter data directly. This approach increases the accuracy and efficiency of data collection, helping to maintain compliance with regulatory requirements.
Environmental – Social – Governance
Environmental – Social – Governance
The EUDR mandates compliance not only with environmental legislation, but also with social standards in the country of harvest. Trade relations with the EU significantly affect the ability of third countries to achieve the UN Sustainable Development Goals (SDGs), which entails a responsibility to mitigate any negative impacts resulting from these trade relations.
A platform that facilitates the management of due diligence information and data will not only help meet legal requirements but will also contribute significantly to the achievement of environmental and social goals.
A well-structured due diligence process, supported by a platform solution, will further enable you to demonstrate a high level of governance, which is crucial for fulfilling reporting obligations under the Corporate Sustainability Reporting Directive (CSRD).
It will also facilitate cooperation with partners and the perception of the company in the market!
A platform that facilitates the management of due diligence information and data will not only help meet legal requirements but will also contribute significantly to the achievement of environmental and social goals.
A well-structured due diligence process, supported by a platform solution, will further enable you to demonstrate a high level of governance, which is crucial for fulfilling reporting obligations under the Corporate Sustainability Reporting Directive (CSRD).
It will also facilitate cooperation with partners and the perception of the company in the market!
Sustainably managed forests and wood products are key to tackling the climate crisis.
By choosing Timber ID platform you are supporting sustainable and eco-friendly practices in forest management.
A better picture of your supply chain will also enable you to better address your own carbon footprint.
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