A coalition of prominent companies, including Nestlé, Mars Wrigley, and Ferrero, has issued a letter urging European legislators not to further delay the EU Deforestation Regulation (EUDR). This legislation aims to prevent products imported to or exported from EU markets from contributing to global deforestation and forest degradation. The companies caution that postponing the law’s implementation could adversely affect forests and climate change and would be unfair to businesses and their supply chain partners who have already invested to meet the regulation’s requirements.
The letter, addressed to EU Commissioner Jessika Roswall, comes in response to a [proposed one-year delay](https://www.esgtoday.com/eu-to-delay-implementation-of-supply-chain-deforestation-law-again/) announced in September by Roswall. The delay is attributed to concerns that existing IT systems may not adequately handle the data demands of the new regulation. This proposal would represent the second consecutive year-long deferment of the EUDR, initially scheduled to be applied from the end of December 2024, potentially moving the date to the end of 2026.
The companies, operating across sectors such as cocoa, dairy, rubber, wood, and agri-food, express support for the EUDR. They emphasise that the regulation’s due diligence and traceability requirements are crucial for responsible raw material sourcing and good business practice, ensuring effective risk mitigation and management of negative environmental impacts, including deforestation.
Roswall’s letter last month detailed concerns about implementing the EUDR with current IT systems, suggesting that it could lead to system slowdowns or disruptions, potentially affecting trade flows in the areas covered by the legislation.
In contrast, the companies argue that delaying the supply chain deforestation law jeopardises global forest preservation, accelerates climate change impacts, and undermines trust in Europe’s regulatory commitments. They highlight the investments made by companies and value chain partners, including smallholder farmers, to comply with the EUDR by the 2025 deadline. They warn that a further delay introduces uncertainty, disengagement, and additional compliance costs, contrary to the intended simplification.
The letter states: “We deeply regret that a technical IT issue risks jeopardising the EUDR’s core objectives and entry into force, three months before the implementation deadline for companies.”
Instead of using the IT issue to delay or reopen the EUDR legislation, the letter proposes alternative measures. These include recognising potential IT system issues as force majeure for compliance and enforcement, issuing a notice for a short grace period with suspended fines, and establishing a technical committee to oversee implementation and facilitate discussions between authorities and operators.
The EUDR was initially introduced by the EU Commission in November 2021, with proposals to effectively ban deforestation-linked products on the EU market and establish stringent compliance requirements for companies dealing with key commodities such as palm oil, beef, timber, coffee, cocoa, rubber, and soy, along with their derived products like leather, chocolate, tyres, and furniture.
Under the new rules, companies aiming to place relevant products on the EU market or export them will face mandatory due diligence requirements. These include tracing products back to the land plot where they were produced, proving they were not made on deforested land post-2020, and ensuring compliance with the applicable laws in the production country.
*Signatories to the letter include Alliance pour la Préservation des Forêts – Alliance for the Preservation of Forests, Association Technique Internationale des Bois Tropicaux – International Tropical Timber Technical Association, Cérélia, CID, Exott, Fair Trade Advocacy Office, Ferrero, Interholco, Mars Wrigley, Nestlé, Olam Agri, Precious Woods, Rainforest Alliance, Rougier, SIPH, Socfin/Sogescol, Solidaridad, Tony’s Chocolonely, and VOICE Network.*
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