THE EU DEFORESTATION REGULATION (EUDR)
Companies that import, market, or export products covered by the EU Deforestation Regulation (EUDR) to the European Union must have a compliance system in place by next year. This system should include collecting information from business partners, such as the origin of products, due diligence references, and responses to supplier questionnaires. A thorough deforestation risk assessment is also required, along with verifying legality risks according to relevant local laws. If risks are identified, further information must be collected, and independent audits or investigations should be carried out. Finally, companies must upload due diligence statements to the Deforestation Due Diligence Statement Registry, including details like product and geolocation data, and publish an annual report on their due diligence activities.
HOW DOES OPTCHAIN WORK FOR EUDR COMPLIANCE?
Optchain links commodities to their production plots using data capture tools tailored to your supply chain, operations and processes. This data is then integrated in the Optchain platform, ensuring traceability from farm/forest to the final material imported/exported in the European Union. Optchain’s EUDR solution supports different stakeholders by helping them perform the following activities:
- Operators and traders: Request and share data, conduct risk assessments, and prepare due diligence statements with ease.
- Exporters: Collect and communicate information across the supply chain, and perform thorough pre-shipment risk assessments.
- Harvesters: Accurately determine and report the geolocation of commodities.
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EUDR DATA CAPTURE
Inbound Traceability (Multi-Tier Supply Chain Mapping and Onboarding):
Optchain maps and onboards suppliers across even the most complex and multi-tiered supply chains. By capturing essential EUDR-compliant data—such as geolocation coordinates, supplier information, and detailed production records—Optchain ensures that every link in your supply chain is transparent and traceable. This approach is particularly beneficial for organizations with complex supply chains, providing the clarity and oversight needed to ensure full compliance.
In-House Traceability (Linking Inputs with Outputs):
Within your operations, Optchain ensures that every input is accurately linked to its corresponding output. This involves capturing data on raw material sources, documenting production processes, and maintaining records that comply with EUDR regulations. The result is a traceability system where every product can be traced back to its origin, providing full accountability.
Outbound Traceability:
Optchain enables you to track finished goods from your facility to your buyers. By linking Due Diligence Statements Reference Numbers with shipments, you can ensure that all outbound goods meet EUDR requirements. This end-to-end traceability guarantees that your products are compliant as they move through the supply chain.
OPTCHAIN FEATURES
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AI-DRIVEN RISK ASSESSMENT
Deforestation Risk Assessment:
Optchain’s AI-driven deforestation monitoring uses advanced satellite imagery to evaluate the compliance of geolocations associated with your imported commodities. Recognizing that supply chain mapping can be complex and time-consuming, Optchain also provides regional analysis at the municipal or regional level, or around key processing and storage facilities, to quickly identify high-risk areas that may require immediate attention.
Legality Risk Assessment:
Optchain’s Legality Risk Assessment ensures full compliance with EUDR by evaluating environmental, human rights, and anti-corruption standards. This is achieved through a three-level approach:
- Risk-based assessment using public indicators and EU risk mapping.
- Self-assessment questionnaires for a deeper evaluation of specific risks.
- On-field audits for any identified non-negligible risks.
This multi-faceted approach allows Optchain to offer a thorough analysis and risk mitigation strategy.
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CORRECTIVE ACTION FOR RISK MITIGATION
To address and mitigate risks, the Optchain Action Plan Module tracks non-conformities, alerts relevant stakeholders, and analyzes the potential impacts. It prioritizes risks and develops corrective action plans, monitors their implementation, and maintains records that are always audit-ready. This proactive approach ensures that any issues are swiftly resolved, keeping your operations compliant and risk-free.
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DUE DILIGENCE STATEMENTS
Connected directly to the EU Due Diligence Registry API, Optchain is fully equipped to generate and manage Due Diligence Statements for your company. This integration allows for continuous compliance, ensuring that your declarations are accurate and fully aligned with EUDR requirements.
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STRATEGIC EUDR PARTNERS
Our solution is strengthened by strategic partnerships with consulting firms, auditing firms, satellite imagery experts, and more. These partnerships ensure a complete approach to compliance, combining expertise and innovative technologies to support our clients in meeting EUDR requirements.
HOW TO COMPLY WITH THE EUDR
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5 Key Insights into EUDR Compliance
On June 29, 2023, the European Union’s Regulation on Deforestation-Free Products (EUDR) came into effect and will become applicable to most companies conducting business in the EU.
Products Impacted by The EUDR
The list of products / commodities that fall under the EU Deforestation Regulation (EUDR) can be found in Annex I of the regulation.
EUDR Due Diligence
The Deforestation Due Diligence Statement Registry is an online tool designed to assist with EUDR due diligence statements and submit them to the relevant authorities.