The most difficult question under EUDR is not “will we be ready on time?”

It is “do we know where this came from?”

EUDR requires identification of the specific plot of land

The application of EUDR has been postponed until 30 December 2026 for medium sized and large enterprises, in relation to companies trading in wood, and until 30 June 2027 for the remaining entities. The extension of the deadline does not change the nature of the regulation. EUDR is an EU regulation requiring a company to know the origin of a commodity down to the specific plot of land.

Missing data may reveal a lack of supply chain control

The consequences extend beyond compliance. Companies that are unable to submit a correct due diligence statement will reveal to the market not only gaps in their internal processes, but also a lack of effective control over the supply chain. In practice, this may result in operational restrictions, including the inability to import certain goods.

Three decisions that should be taken now

Three decisions need to be taken now:

1) renegotiating agreements with suppliers to require disclosure of geolocation data and provide audit rights,

2) making a strategic decision as to which categories of commodities should remain within the scope of the business and which, due to their risk level, should be withdrawn,

3) integrating DDS with existing ESG reporting in order to avoid inconsistencies between environmental data and EUDR statements.

Not every supply chain will survive EUDR

Some supply chains will not survive this regulation.

Conclusions

This is a discussion that should take place with the management board now, not in the third quarter of 2026.