The European Union Deforestation Regulation (EUDR) continues the trend of introducing responsible sourcing practices into compliance requirements. This includes requirements for establishing a framework of procedures to conduct due diligence, and collect supply chain sustainability data and annual risk assessment documentation. If you don’t meet these requirements, you could suffer brand damage, lose future contracts, and have your in-scope products removed from the market.
This article provides a short overview of the EUDR, what it signals about the future of EU regulations, and how you can use transparency infrastructure — like Digital Product Passports (DPPs) — to gain deeper insights and protect against future compliance requirements.
But it’s important to know that EU digital product passports alone are not enough — you still have to get the right data to put into them. That’s where Assent comes in. Our supply chain sustainability software helps manufacturers like you collect, validate, and manage the supplier data needed to meet the EUDR’s due diligence requirements.
What Is the Goal of the EU Deforestation Regulation?
The EUDR is designed to mitigate global deforestation risks by enforcing responsible sourcing practices, with EU market access as the leverage.
It requires supply chain due diligence and reporting to ensure that products:
- Are deforestation-free, meaning they are not a result of the conversion of forest to agricultural use, whether caused by humans or not
- Have been produced in accordance with the relevant legislation of the country of production
- Are covered by a due diligence statement
To support these outcomes, the EUDR also requires in-scope manufacturers to establish processes for collecting supply chain sustainability risk data and review that data annually. Any manufacturer that becomes aware of a deforestation risk must inform the competent authorities of any EU member states where they’ve put non-compliant products on the market.
Now is the time to strengthen your supply chain sustainability program. Download the Supply Chain Sustainability Handbook to reduce risk and gain data-driven insights.
EU Deforestation Regulation Fundamentals: Scope & Timelines
The EUDR encompasses a broad range of commodities, including:
- Cattle
- Cocoa
- Coffee
- Oil palm (the crop that yields palm oil and palm-kernel oil)
- Rubber
- Soy
- Wood
Additionally, the regulation extends to a wide variety of derived products, including (but not limited to):
- Meat products
- Leather
- Chocolate
- Coffee
- Palm nuts
- Derivatives of palm oil
- Glycerol
- Products made from natural rubber
- Pulp and paper goods (e.g., printed books)
However, this does not extend to goods made solely from recycled materials that would otherwise be sent to landfill.
The EUDR applies to products manufactured on or after June 29, 2023. The existing Regulation (EU) No 995/2010 for timber and timber products will remain in effect until December 31, 2027. Note that Timber products made before June 29, 2023, and placed on the market as of December 31, 2027, will need to comply with this new regulation.
EUDR Risk Assessments: Supply Chain Data at Work
EU supply chain risk management is the main focus of the EUDR, with an emphasis on due diligence around forests and indigenous peoples in the material’s country of origin. In-scope manufacturers will need to collect a broad range of responsible sourcing information, including (but not limited to):
- Consultation and cooperation in good faith with indigenous peoples
- Prevalence of deforestation or forest degradation in the country of production
- Potential for ethical issues within the country of production, including corruption, document or data falsification, human rights violations, and even the presence of armed conflict or sanctions imposed by the UN Security Council or Council of the European Union
- Complexity of the supply chain and the stage of processing of the relevant products, as well as difficulties tracing materials back to the plot of land where the commodities were produced
The task of risk assessment is not a one-and-done deal. It’s a continuous process with annual reviews to catch any changes and make necessary improvements. You must make your documentation of this process available to the competent authorities upon request, which underscores the growing importance of transparency and accountability in business operations.
How Digital Product Passports Support EUDR Compliance
At its most basic level, a DPP is a product’s digital record, containing important information such as supplier names, coordinates, and country of origin. It can also include the product’s carbon footprint, end-of-life recycling instructions, and the origin of its raw materials.
For those reasons, while they’re not required under the EUDR, EU digital product passports are a scalable and efficient way to simplify EUDR due diligence by bringing all traceability data into a single, accessible digital record.
Durable goods manufacturers, especially those handling electronics and medical devices, will also benefit from adopting DPPs, since they are indirectly affected by the EUDR through materials like rubber and wood-based packaging.
A Larger Regulatory Trend: Responsible Sourcing
While the EUDR has the potential to disrupt many supply chains, an even more important takeaway for businesses is the need for proactive supply chain due diligence that goes deeper into supplier data than the previous generation of product compliance regulations.
Like with the evolution from conflict minerals reporting to responsible minerals sourcing, manufacturers in scope of the EUDR are being met with heightened regulatory expectations that go beyond basic data collection. Going forward, companies will have to put numbers to how their sourcing choices affect forests, people, and local communities — a core part of responsible sourcing. Responsible sourcing requirements are entirely changing the way regulations are being created. And that means a whole new approach to supply chain sustainability management.
Here’s how to get proactive about responsible sourcing:
- Monitor upcoming and new data collection requirements and assess whether your program currently meets them.
- Update your supply chain outreach and surveys and begin engaging suppliers early. They’ll need time to collect the data, especially for new or complex asks.
- Educate suppliers about new data requirements and make them partners in compliance.
Why EUDR & Digital Product Passports Are a Smart Long-Term Compliance Strategy
The regulatory environment rewards proactivity. Global regulations are constantly changing, putting companies with reactive compliance programs at a disadvantage. On top of that, no manufacturer wants to discover forced labor or environmental issues within their supply chains.
That’s why including DPPs in your proactive EUDR compliance strategy is smart and effective.
First and foremost, DPPs are a transparency investment. Thanks to the sheer amount of product information they contain, manufacturers can more easily prepare for regulations as they evolve, like those regulating forced labor and embedded emissions or carbon footprint.
Furthermore, the European Commission links DPPs with a broader sustainability framework, including the EUDR and the Ecodesign for Sustainable Products Regulation (ESPR), enabling manufacturers to gain deeper insights into potential compliance risks and mitigate them before they become a problem.
From Compliance to Competitive Advantage
The EUDR requires manufacturers like you to put a robust due diligence program in place. By using transparency tools like digital product passports, you can reduce your regulatory risks, enable faster reporting, and boost customer trust. And the earlier you do it, the better, because it will position you to meet not only the EUDR’s requirements, but also any future EU mandates.
By identifying red flags across tiered supply chains, automating data collection, and centralizing documentation, Assent’s solution reduces your risks and delivers time savings, helping you avoid the high costs of manual compliance tracking.
With Assent, you’ll gain deeper visibility into material origins and stay audit ready — not just for the EUDR, but for the broader sustainability landscape and future regulations that come down the pipe. Book a demo of our solution today.
FAQ: Digital Product Passports & the EU Deforestation Regulation (EUDR)
1. What is the EU Deforestation Regulation (EUDR) and why does it matter?
The EU Deforestation Regulation (EUDR) is a landmark law that prohibits products linked to deforestation from being sold in the EU. It requires manufacturers to perform due diligence to ensure products are:
- Free from deforestation
- Compliant with production country laws
- Supported by a due diligence statement
Non-compliance can result in product bans, legal penalties, and reputational damage, making EUDR adherence critical for companies exporting to or operating within the EU.
2. How does the EU Deforestation Regulation affect supply chain sustainability?
EUDR raises the bar on supply chain sustainability by mandating extensive data collection and annual risk assessments. Companies must analyze deforestation risk factors, such as land use, human rights concerns, and traceability to the origin plot. This marks a shift from basic compliance to ongoing, risk-informed due diligence, reshaping responsible sourcing standards.
3. What is a Digital Product Passport (DPP) and how does it support EUDR compliance?
A Digital Product Passport (DPP) is a digital record that contains detailed product information, including origin, materials, carbon footprint, and supplier data. While not mandatory under the EUDR, EU digital product passports streamline compliance by:
- Centralizing traceability data
- Enabling faster, more accurate risk assessments
- Supporting proactive regulatory readiness
Adopting DPPs gives manufacturers a scalable way to meet today’s EUDR requirements and prepare for future EU sustainability laws.
4. Which products are in scope under the EU Deforestation Regulation?
The EUDR applies to both raw commodities and derived goods, including:
- Commodities: Cattle, cocoa, coffee, oil palm, rubber, soy, wood
- Products: Leather, chocolate, palm oil, glycerol, rubber items, pulp, paper goods
5. Why should manufacturers adopt Digital Product Passports now?
Proactively integrating digital product passports into compliance programs helps manufacturers:
- Stay ahead of evolving EU regulations like EUDR and the Ecodesign for Sustainable Products Regulation (ESPR)
- Increase transparency and audit readiness
- Reduce manual compliance burdens and future proof their operations
With global regulations trending toward stricter responsible sourcing requirements, DPPs are a strategic investment for long-term compliance and competitive advantage.
