As businesses navigate the complexities of sustainability and regulatory compliance, understanding and adhering to the EU Deforestation Regulation (EUDR) becomes crucial. One key requirement under EUDR is the creation of a Due Diligence Statement. This blog post will guide you through building an effective due diligence statement that meets EUDR standards, ensuring your products comply with the latest environmental regulations.

What is the EU Deforestation Regulation (EUDR)?

The EU Deforestation Regulation (EUDR) aims to minimize the EU's contribution to global deforestation and forest degradation. It sets out strict guidelines for businesses to ensure that products entering or leaving the EU market do not contribute to deforestation. Compliance with EUDR is mandatory for companies involved in the supply chain of relevant commodities.

Why is a Due Diligence Statement Important?

A Due Diligence Statement serves as a formal declaration that your company has thoroughly checked its supply chains to ensure compliance with EUDR. It helps in:

• Demonstrating Compliance: Showing regulators and stakeholders that your business adheres to environmental standards.

• Risk Management: Identifying and mitigating risks related to deforestation in your supply chain.

• Enhancing Reputation: Building trust with customers and partners by committing to sustainable practices.

Steps to Build a Due Diligence Statement for EUDR

Creating a due diligence statement involves including specific information as outlined in Article 4(2) of the EUDR. Here’s a step-by-step guide to help you compile the necessary details.

1. Provide Your Company Information

Start by clearly stating your company’s name, address, and Economic Operators Registration and Identification (EORI) number if your products are relevant commodities entering or leaving the EU market.

Example:

Operator’s Name: GreenSupply Ltd.

Address: 123 Sustainable Street, EcoCity,

EU EORI Number: EU123456789

2. Detail the Product Information

Include the Harmonised System (HS) code, a description of the product (including trade name and scientific name if applicable), and the quantity you intend to place on the market or export.

• Quantity should be in kilograms of net mass.

• If applicable, include a supplementary unit as per Annex I of Regulation (EEC) No 2658/87.

Example:

HS Code: 0802.90

Description: Ripe mangoes (Mangifera indica)

Quantity: 10,000 kg

3. Specify the Country of Production and Geolocation

List the country of production and the geolocation (exact locations) of all plots of land where the commodities were produced. If your product involves cattle or products fed with cattle, include the locations of all establishments where the cattle were kept.

The plots data should be submitted in a GeoJSON format, which you can create with tools like Forestly or the EU's due dilligence dashboard.

4. Reference Existing Due Diligence Statements

If you have previously submitted a due diligence statement under Article 4(8) and (9), include the reference number of that statement.

Example:

Reference Number: DD2023/0456

5. Include the Compliance Declaration

Add the following statement to confirm that due diligence has been carried out in accordance with Regulation (EU) 2023/1115 and that there is no or only a negligible risk of non-compliance with EUDR.

Text to Include:

“By submitting this due diligence statement the operator confirms that due diligence in accordance with Regulation (EU) 2023/1115 was carried out and that no or only a negligible risk was found that the relevant products do not comply with Article 3, point (a) or (b), of that Regulation.”

6. Add the Signature

Conclude your statement with a signature block that includes:

• Name and function of the person signing.

• Date of submission.

• Signature.

Example:

Signed for and on behalf of: Date: 16/09/2024 Name and Function: Jane Doe, Compliance Manager Signature: [Signature Here]

Tips for an Effective Due Diligence Statement

• Be Accurate: Ensure all information provided is correct and up-to-date.

• Be Clear: Use straightforward language to avoid misunderstandings.

• Stay Organized: Structure your statement logically, following the order outlined in Article 4(2).

• Keep Records: Maintain copies of all due diligence statements and supporting documents for future reference.

Conclusion

Building a due diligence statement for the EU Deforestation Regulation (EUDR) is a critical step in ensuring your business complies with environmental standards and contributes to the fight against deforestation. By following the steps outlined above, you can create a comprehensive and compliant due diligence statement that supports your sustainability goals and regulatory obligations.