The European Union Regulation on Deforestation-Free Products (EUDR) — introduced in 2023 to restrict the sale of goods linked to deforestation or forest degradation — has faced some timeline and integration delays but remains on track to take effect in January 2026. As the compliance deadline nears, the law is already reshaping expectations for visibility and accountability across global supply chains.
Regardless of shifting timetables, greater transparency is needed and should be prioritized by manufacturers of all sizes. The new requirements are as critical to meeting consumer demands and maintaining market position as they are to legal compliance. With 73% of European consumers already trying to avoid brands tied to deforestation, it’s time for global packaging organizations to commit to full supply-chain transparency. A heightened focus on due diligence and technology’s essential role in compliance are key to kickstarting the shift and meeting the deadlines.
Establish and Implement Due Diligence Systems for Compliance
The new regulation will require businesses to prove that products sold in the EU were not sourced from recently deforested land and did not contribute to forest degradation after December 31, 2020. For the packaging industry, this applies to any products containing virgin wood or paper fibers. Adherence to the new EUDR guidelines requires companies to implement a three-step process that includes:
- Information collection: Gather detailed information about the product, including the geolocation of the land where the raw materials (like wood) were harvested.
- Risk assessment: Evaluate the risk that the products are linked to deforestation or were not produced in line with the origin country's laws.
- Risk mitigation: If the risk is more than negligible, you must take steps to address it, such as conducting supplier audits or changing suppliers, before placing the product on the EU market.
The procedure is not a one-time check, and must be unified with existing monitoring systems to ensure ongoing supplier compliance. An effective EUDR compliance strategy requires a central data backbone, which is strongest when composed of integrated software like Enterprise Resource Planning (ERP) and Manufacturing Execution Systems (MES).
ERP and MES Automate Compliance Process and Ensure Audit-Readiness
ERP and MES allow packaging companies to streamline compliance management. They act as the system of record and control, linking commercial transactions and production activities to the precise traceability data the regulation calls for. ERP systems can store essential information like shipment volumes, Harmonized System codes, and supplier details required for the official due diligence statement. MES solutions are critical for the factory floor, enforcing the segregation of compliant and non-compliant materials, and documenting the conversion of raw materials into EUDR-adherent products.
Integrating internal systems enables companies to automate the entire compliance process and keep it audit-ready, guaranteeing that every product or shipment placed in the EU is fully traceable from start to finish. These solutions optimize production, centralize reporting, and reduce the administrative burden of new regulations. By preparing now for enforcement, manufacturers can turn compliance into an opportunity for growth.
Establishing a progressive, all-encompassing program for monitoring and internal audits will become a requirement for all global packaging organizations. Though some have a few months longer to comply, every deadline will eventually arrive — and it’s wise to be ahead of the curve. Adhering to the EUDR necessitates moving beyond traditional, once-a-year assessments to a continuous, technology-enabled due diligence process. Companies that integrate advanced software solutions into daily operations will stay ahead of regulatory demands, meet growing sustainability expectations, and significantly strengthen the resilience of their supply chains.
About the Author
Chuck Raymond is currently a Principal Account Manager at Advantive. He has a demonstrated history of assisting Fortune 500 and growing companies with digital transformation efforts across many software platforms and solutions. He previously worked for Kiwiplan (now part of the Advantive family) for over 20 years, providing software solutions for the packaging industry.