The European Union Regulation on Deforestation-free Products (EUDR) is a legislative framework aimed at ensuring that products entering the EU market are not linked to deforestation or forest degradation. It focuses on commodities such as palm oil, soy, timber, coffee, cocoa, and cattle, which are major drivers of deforestation globally. The EUDR went into effect in 2023 and will be enforced at the end of 2025.

The regulation sets out requirements for companies to conduct due diligence to trace the origin of these products and ensure they are produced in a way that does not contribute to deforestation. It promotes transparency and accountability in supply chains, aiming to reduce the EU's contribution to global deforestation and forest degradation. The regulation also includes a section related to Human rights: The EUDR sets clear responsibilities for companies to ensure the protection of forests and respect for human rights along the supply chain. This includes verifying the origin of products and ensuring fair working conditions and human rights. The rights of indigenous peoples are gaining importance, and transparency and traceability are crucial to ensure that products are free from deforestation

By implementing the EUDR, the EU seeks to encourage sustainable land-use practices and protect biodiversity, while also addressing climate change by maintaining forest ecosystems that serve as carbon sinks.

Nefab is implementing strategies to comply with the EUDR by conducting due diligence with suppliers of relevant materials such as wood, plywood, fiber-based materials and other materials that fall under the directive. These Due Diligence statements will include information about the origin of the materials and detailed production information such as the type of product, quantity, and volume. Moreover, Nefab is working on validating current compliance processes and supporting the implementation of the EUDR compliance strategy.

In addition, we are implementing a digital solution for EUDR compliance that would provide efficient compliance at scale to support our needs as an international organization. 

If no further changes are to apply to the regulation, Nefab expects full readiness by November 2025.