Achieve EUDR Compliance for Wood
What is the Current Landscape of Wood and Wood Products?
Forest products are a major export for many countries, particularly in regions rich in forest resources like Canada, Brazil, and Indonesia. These exports contribute significantly to national economies by generating income and supporting investments in infrastructure, healthcare, and education. Trade of global forest products amounts to about US$ 270 billion, contributing to 12% of total global trade in commodities.
A large fraction of these products is imported by the European Union (EU) in particular. In 2022, the top partner countries from which the EU imports wood and wood products included China, Brazil, United States, and the United Kingdom.
How Will the EUDR Impact the Trade of Wood and Wood Products?
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 wood sector must undergo significant changes to align with the new sustainability standards:
- Traceability Enhancement
Wood product manufacturers will implement tracking systems to ensure transparency and verify the origins of wood, ensuring compliance with regulations. This will build consumer trust and create new market opportunities for compliant producers. - Opportunities for Sustainable Practices
Wood producers can access the European market by offering sustainably sourced, deforestation-free wood. This promotes innovation in sustainable agriculture, enhancing soil health, biodiversity, and farmers’ livelihoods. - Supply Chain
Wood product manufacturers 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
Wood producers and exporters must now provide detailed documentation proving that their wood is not linked to deforested areas. EUDR on wood 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 wood and wood product manufacturers include:
- Traceability and Transparency: Establish a clear and transparent supply chain to ensure that wood 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 wood and wood product sourcing.
- Regulatory Compliance: Understand and comply with all relevant EU regulations and standards related to wood and wood product 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 wood and wood product sourcing, benefiting both the environment and the industry.
How Do Certification Schemes Factor into This?
For organizations already certified to schemes offered by the Forest Stewardship Council (FSC), Sustainable Forestry Initiative (SFI), and Programme for the Endorsement of Forest Certification (PEFC), SCS offers voluntary EUDR add-on modules to help bridge the gap between certification and compliance.
The add-on modules do not cover wood products that are not certified. If a company has multiple wood products and only some of them are certified, SCS EUDR Verification Services are a good option.
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