Key topics to be addressed:
What steps can you take to trace sourced timber to their exact geolocation and receive evidence for the deforestation and compliance status of each of your suppliers in your entire supply chain?How can you improve and ease your due diligence processes and effectively monitor your suppliers to comply with the regulation?How can you address and avoid the risks associated with non-compliance with the EUDR?What are the potential benefits and chances of implementing sustainable practices in your business, and how you communicate these to your stakeholders?
What steps can you take to trace sourced timber to their exact geolocation and receive evidence for the deforestation and compliance status of each of your suppliers in your entire supply chain?How can you improve and ease your due diligence processes and effectively monitor your suppliers to comply with the regulation?How can you address and avoid the risks associated with non-compliance with the EUDR?What are the potential benefits and chances of implementing sustainable practices in your business, and how you communicate these to your stakeholders? EUDR Deployment Guide
EUDR Deployment Guide
How TimberID Can Assist You In Getting Compliant?
What It Takes To Be Ready?
Download EUDR deployment guide and learn more.
What It Takes To Be Ready?
Download EUDR deployment guide and learn more.
EUDR deployment guide
Due-Diligence
Due-Diligence
Prior to placing relevant products on the EU market or exporting them from the EU, operators shall collect information and exercise due diligence regarding all relevant products. The same applies to big traders (non-SME traders).
The basic information requirements are:
The collection of information, data, and documents.Transaction specification, species, and volumes.Geo-location coordinates of the timber source.
Based on risk assessments, additional verifiable information must be provided to demonstrate effective risk mitigation in both standard and high-risk environments.
All records must be kept for a period of 5 years.
The basic information requirements are:
The collection of information, data, and documents.Transaction specification, species, and volumes.Geo-location coordinates of the timber source. Based on risk assessments, additional verifiable information must be provided to demonstrate effective risk mitigation in both standard and high-risk environments.
All records must be kept for a period of 5 years.
Due-Diligence Statements
The EU Information System "Traces", provided by the EU Commission, will serve as the central system for reporting and documentation. This system mandates that operators and major traders within the EU upload information, integrate reference numbers from existing DDS, and issue new Due Diligence Statements.
Adopting a platform solution will streamline your interaction with the Traces system, simplifying your communication with it. Through an API, the platform will automatically extract and compile all relevant information, significantly reducing your effort in system interaction while also guaranteeing the completeness of all data.
For actors outside the EU, the platform can serve as a comprehensive data traceability hub enabling platform users to fulfil compliance criteria and get market access to the EU.
Risk Assessment / Mitigation
Risk Assessment / Mitigation
Risk Assessment
Based on the gathered information and documentation at the level of sourcing countries, at the level of the suppliers and considering the very nature of the transaction, the operators shall carry out a risk assessment to establish whether there is a risk that the relevant products intended to be placed on the EU market or exported from it are non-compliant.
Evaluate the risk of non-compliant products entering the supply chain.Evaluate the risk of mixing with products of unknown origin or origin in high-risk or standard risk countries.Verify and analyse the information collected in accordance with relevant documentation. 
Risk Mitigation
Before introducing the relevant products to the EU market or exporting them from the EU, the operator must implement risk mitigation procedures and specific measures that effectively address and reduce the risk to a level that is either non-existent or negligible.
Effective mitigation measures could be:
Collecting additional information, data, or documents from/on suppliers. Carrying out independent surveys or audits.Verify the transaction and the origin by measures such as physical traceability.Operators must establish policies, controls, and procedures that are both adequate and proportionate to mitigate and effectively manage identified risks of non-compliance for the relevant product. These could encompass:
State of the art risk management, reporting, record-keeping, internal controls, and compliance management.An independent audit function to review the effectiveness of internal policies, controls, and procedures.The risk assessment and risk mitigation procedures and measures must be thoroughly documented, reviewed at least annually, and provided to the competent authorities upon request, as well as made accessible to customers further down the supply chain.
Regulatory Compliance Documents
Regulatory Compliance Documents
A Workflow system is required to collect and process data and to collect and create Due Diligence Statements. Beyond the standard data mandated by the EUDR, the nature of this documentation can vary significantly based on the specific risk context of each country.
Forest plot and geo-location data as well as data on harvesting dates.Data on involved companies and forest owners.Data on authorizations and certifications.Transaction delivery note specifications.Other, customisation.
The data must be verifiable by authorities and suitable for customer audits.
Forest plot and geo-location data as well as data on harvesting dates.Data on involved companies and forest owners.Data on authorizations and certifications.Transaction delivery note specifications.Other, customisation.The data must be verifiable by authorities and suitable for customer audits.
Data Protection Access Limitation
Data Protection Access Limitation
To address the concerns of stakeholders throughout the supply chain, the workflow system must facilitate diligent data processing, including options for selective information sharing. Information should not be broadly disseminated but rather distributed on a strict need-to-know basis.
Ensuring data privacy is paramount and plays a critical role in selecting a suitable platform solution. Nonetheless, all pertinent information required to fulfil due diligence obligations must be readily available and accessible.
Ensuring data privacy is paramount and plays a critical role in selecting a suitable platform solution. Nonetheless, all pertinent information required to fulfil due diligence obligations must be readily available and accessible.
Information Gathering
Information Gathering
The information gathering phase is the most labor-intensive aspect of a due diligence process. When performed manually, it is susceptible to mistakes and human error. This highlights the importance of establishing and maintaining robust digital due diligence systems, along with consistent reporting and record-keeping practices.
Digitizing and integrating supply chain members into a digital workflow is essential for simplifying processes, enhancing efficiency, and minimizing the risk of human error. Adopting a platform solution can also streamline record-keeping and documentation efforts, ensuring compliance with legal documentation requirements more effectively.
Digitizing and integrating supply chain members into a digital workflow is essential for simplifying processes, enhancing efficiency, and minimizing the risk of human error. Adopting a platform solution can also streamline record-keeping and documentation efforts, ensuring compliance with legal documentation requirements more effectively.
Provenance Verification
Provenance Verification
In low-risk countries, documenting transactions will suffice, but verifying the origin of wood materials becomes obligatory in scenarios where there is a tangible risk of mixing legal and illegal sources. Documentation is always based at the transaction level.
In high-risk environments, implementing additional physical traceability measures (such as Timber ID) is crucial for ensuring certainty and verification.
Automating processes is essential to ensuring the accuracy and verifiability of data flow and effectively managing potential risks.
In high-risk environments, implementing additional physical traceability measures (such as Timber ID) is crucial for ensuring certainty and verification.
Automating processes is essential to ensuring the accuracy and verifiability of data flow and effectively managing potential risks.
Geo-Spatial Data
Geo-Spatial Data
Geolocation plays a crucial role in excluding deforestation, forest degradation, and potential illegal sources. According to the EUDR, the requirement for geo-spatial data stipulates that:
forest plots smaller than 4 hectares must have a spot geo-location,while plots exceeding this size need polygon coordinates.
Implementing a digital platform and mobile application will streamline the registration of forest plots and associated information, allowing forest owners to input data directly. This approach enhances the accuracy and efficiency of data collection, aiding compliance with regulatory requirements.
forest plots smaller than 4 hectares must have a spot geo-location,while plots exceeding this size need polygon coordinates.Implementing a digital platform and mobile application will streamline the registration of forest plots and associated information, allowing forest owners to input data directly. This approach enhances the accuracy and efficiency of data collection, aiding compliance with regulatory requirements.
Environmental – Social – Governance
Environmental – Social – Governance
The EUDR mandates compliance not only with environmental legislation but also with social norms in the country of harvest. Trade relations with the EU significantly influence the ability of third countries to achieve the UN Sustainable Development Goals (SDGs), which carries a responsibility to mitigate any adverse effects stemming from these trade relationships
A platform that facilitates the management of your due diligence information and data will not only help you meet legal requirements but also significantly contribute to achieving your environmental and social objectives.
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 ease up your partners!
A platform that facilitates the management of your due diligence information and data will not only help you meet legal requirements but also significantly contribute to achieving your environmental and social objectives.
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 ease up your partners!
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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