To comply with the EUDR, companies will need to implement due diligence systems across their supply chains. These systems should include:
- Key information such as the quantities of product; company information of suppliers and buyers; countries of origin
- Geolocation of farms where the purchased commodities were produced (clarify whether this needs to be polygons or points)
- Assessment of whether commodities were free from deforestation from 2021 onwards, and produced in line with local laws
- A risk assessment (including prevalence of forest and deforestation in the region of origin and local land tenure and rights of indigenous peoples)
- Risk mitigation measures
To do this effectively, companies should use high quality, authoritative data that is recognised by national authorities with the remit for monitoring and managing forest resources in the country / region where the commodity is produced.
This minimises errors such as potentially missing deforestation or falsely accusing a local producer of deforestation which may result in using freely available, global datasets.