Achieve EUDR Compliance for Palm Oil

How Will the EUDR Impact the Trade of Palm Oil?

Relevant products must be traceable to the farm plot by geolocations and polygons uploaded into EU information systems. Each origin will be benchmarked for risk and grouped into “low,” “standard,” or “high”-risk categories. 

The palm oil sector must undergo significant changes to align with the new sustainability standards:

• Traceability Enhancement
  Palm oil producers will implement tracking systems to ensure transparency and verify the origins of palm oil, ensuring compliance with regulations. This will build consumer trust and create new market opportunities for compliant producers.
• Opportunities for Sustainable Practices
  Palm oil producers can access the European market by offering sustainably sourced, deforestation-free palm oil. This promotes innovation in sustainable agriculture, enhancing soil health, biodiversity, and farmers’ livelihoods.
• Supply Chain
  Palm oil producers and retailers must collaborate with suppliers to ensure responsible sourcing, investing in traceability technologies, farmer training, and long-term partnerships with compliant producers.
• Compliance Requirements
  Palm oil producers and exporters must now provide detailed documentation proving that their palm oilis not linked to deforested areas. EUDR on palm oil production will provide strict compliance with deforestation-free sourcing.

What Gaps Need to be Addressed by Producers, Growers and Traders for EUDR Compliance?

A few challenges that could come out of the EUDR for palm oil producers/traders include:

• Traceability and Transparency: Establish a clear and transparent supply chain to ensure that palm oil is sourced from deforestation-free areas, including the maintenance of detailed records and documentation to prove compliance with EUDR requirements.
• Land Use and Deforestation Monitoring: Implement satellite and remote sensing technologies to monitor land use changes and ensure no deforestation occurs and adopt and enforce policies that commit to zero deforestation in palm oil production.
• Regulatory Compliance: Understand and comply with all relevant EU regulations and standards related to palm oil imports and regularly update practices and policies to align with evolving regulatory requirements.
• Country-Specific Regulations: Ensure that production is done in accordance with all country-of-origin regulations. 

Addressing these gaps will not only help in complying with the EUDR but also promote sustainable and responsible palm oil production, benefiting both the environment and the industry.

How Do Certification Schemes Factor into This?

The Roundtable on Sustainable Palm Oil (RSPO) plays a crucial role in assisting palm oil producers, growers, and traders in their daily operations and in achieving sustainability goals. Currently, RSPO offers a Gap Analysis with the EUDR, to encourage sustainable practices in the supply chain.

How SCS Can Help

SCS can support clients with our comprehensive EUDR services by offering tailored solutions that address each aspect of the EUDR compliance process. Here’s how we can help:

EUDR Consulting Services 

• Corporate regulatory and implementation education and advisory
• Needs assessment and strategy development
• Due diligence system development and review
• Gap and risk assessment
• Commodity and value chain traceability
• Customized verification checklists

Compliance Assessments: Review and assessment of EUDR compliance of various players within your supply chain. 

Due Diligence Integrity Assessments: Review and assessment of EUDR due diligence statements (past or current). 

Self-Paced Training: Self-paced training on EUDR compliance for those in the coffee, wood, palm oil, cocoa, and other EUDR impacted industries.

With these services, SCS enables clients to not only meet but also exceed EUDR requirements, safeguard their reputation and ensure sustainable, deforestation-free practices across their supply chains.

For more information contact: EUDR Business Group