The European Deforestation Regulation (EUDR) will soon be the new reality for companies in the European Union. Companies are looking for ways to fulfill their due diligence obligations under this law. Increasingly, the role of certification is recognised. In this news item, we explain how SFAP can help you with your due diligence requirements.
About the EUDR
The EUDR requires companies that import, export, or produce seven different commodities/products (coffee, cocoa, soy, palm oil, beef, rubber, timber) to prove that these products have been free from deforestation (cut-off date 30 Dec. 2020) and have been produced in line with legal requirements. Companies have to demonstrate this via a due diligence process, which requires them to collect information, execute a risk assessment, and mitigate risks. Companies can be classified as operators or traders. Operators place products on the market, and traders make products available on the market. The requirements differ slightly for these two roles.
EUDR requirements
EUDR requires that for all products, the geocoordinates of the plots of production are known and made available. It must be demonstrated that these plots are free from deforestation and illegal practices. Companies have to collect the polygons for the production plots and additional information showing no deforestation, for instance, via satellite images, remote sensing, or time-stamped photos. In addition, they must demonstrate legal compliance, for instance by collecting licenses, permits, and formal authorization documents. These steps are especially executed by the operator, but the companies further downstream (defined as traders) also need to execute due diligence.
Uncertainty
At the moment, there is a lot of legal uncertainty about the EUDR, both about the timelines and the exact roles and responsibilities. The EUDR may still apply as of 30 December 2025, but it can also be delayed for 1 year to 30 December 2026. Irrespective of what will happen with EUDR, operators have to prepare themselves for this new reality.
SFAP in EUDR
SFAP is a trustworthy certification system verified by an accredited third-party. SFAP-certified farmers have converted their land already many years before the cut-off date from the EUDR. That means that all SFAP plots meet the no-deforestation requirement of the EUDR. SFAP verifies this by using satellite images combined with field checks. SFAP also collects the polygons and stores them for 5 years. In addition, the independent auditors verify legal compliance at the farm level. On-farm audits are the best way to prove legal compliance. Operators that acquire soy from SFAP-certified farmers can trust that these farmers meet the EUDR requirements and can use all available information in their due diligence system.
Conclusion
SFAP certification is an important stepping stone for operators in the soy sector to prove no deforestation and legal compliance. SFAP is providing operators with all the information they need for their due diligence system.