High percentage of the leading timber sector not prepared for EU deforestation regulation

EUDR will require companies to ensure their products are verifiably deforestation-free, their origin is known, and they are produced legally in their country of origin

Launched this week, new data from conservation charity ZSL’s SPOTT Timber and Pulp assessment reveals how many of the world’s major tropical timber and pulp companies are unprepared for the European Union Deforestation Regulation (EUDR) ahead of its implementation in December 2024 – with only 13.3% of companies publicly providing evidence of monitoring deforestation within their own operations, and only 4.3% monitoring their supplier’s operations.  
 
The EUDR, applying to all companies that aim to place their products on the EU market, requires companies to ensure their products are verifiably deforestation-free, their origin is known, and they are produced legally in their country of origin. By doing so, the regulation aims to tackle biodiversity loss driven by deforestation and reduce greenhouse gas emissions.  
 
With just 16 months left to implement the new rules, companies failing to comply with the EUDR risk losing access to the EU market – the world's third-largest economy.  
 
Sam Ross, ZSL’s Sustainable Business Project Analyst and lead analyst on the assessment, explained: "Accounting for one-sixth of global trade and over $4 billion worth of tropical timber and wood furniture imports (2022), the EU wields significant influence over global industries and commodity trade. The upcoming EUDR will set the tone for other emerging and existing legislation, such as the UK Environment Act and US FOREST Act – yet our findings highlight a worrying lack of readiness among many timber and pulp companies for the coming changes. 
 
Under the EUDR, EU companies must ensure that any material they import has not caused deforestation after December 2020 or face criminal penalties. Only 15 of 90 SPOTT-assessed companies currently have a public commitment which meets this requirement. And even fewer – 8/94 (8.5%) – disclose that they require their suppliers to do the same.  

 
The EUDR also sets out a requirement for companies to obtain precise geolocation data for all the products they place on the EU market. SPOTT's research indicates this will be a critical area of improvement for the sector, with just 6/94 (6.4%) companies publicly reporting they are currently able to trace 100% of their supply to the location of harvest. 
 
ZSL urgently calls for buyers and financial institutions investing in tropical timber and pulp to support producer companies in addressing deforestation and enhancing their EUDR compliance. All supply chain stakeholders must aid in strengthening traceability, due diligence processes, and deforestation commitments to achieve the EUDR's objectives to tackle the intertwined crises of climate change and biodiversity loss. 

Find out more here.