The due diligence system is a central pillar of the EUDR. A company placing or exporting regulated products to or from the EU must be able to trace its supply chain, assess risks of deforestation or illegality, and mitigate those risks before any goods can enter the market.
The EUDR due diligence system consists of three core steps: information gathering (collecting geolocation data and supply chain documentation), risk assessment (evaluating the likelihood that products are associated with deforestation or forest degradation), and risk mitigation (implementing measures to reduce identified risks to a negligible level). Companies must maintain and regularly update their due diligence systems, and the system must be proportionate to the complexity of their supply chains.
Learn how to build a compliant EUDR due diligence system and read our guide on what the EUDR means for your business to understand the full requirements.
See how Coolset helps companies with EUDR due diligence and supply chain compliance →
