Navigating EUDR Compliance: Certification Schemes in Action
As the deadline of 30th December 2024 for the implementation of the European Union Deforestation Regulation (EUDR) approaches, certification schemes are increasing their efforts to align with its requirements. The EUDR allows for the use of certified or third-party verified schemes in the risk assessment process, highlighting the role of certifications in ensuring regulatory compliance. In response, certification schemes such as Forest Stewardship Council® (FSC®), the Roundtable on Sustainable Palm Oil (RSPO), the Rainforest Alliance, and The Common Code for the Coffee Community (4C) are taking action to align with the requirements of the regulation. They are adapting their standards, enhancing traceability systems, developing EUDR add-ons, and implementing other solutions. These certification schemes want to equip certified organizations with the tools and support needed to navigate the complexities of EUDR compliance.
In this article, we explore how certification schemes are adapting their approaches to align with the EUDR and contribute to deforestation-free practices.
”EUDR covers the commodities cocoa, coffee, beef, palm oil, soy, rubber, and wood.”
Certification Schemes Adaptations for EUDR
PEFC
PEFC has introduced the PEFC EUDR Due Diligence System (DDS) Standard Module to assist PEFC-certified organizations in meeting their obligations under the EUDR. This system is built upon PEFC’s established chain of custody DDS. PEFC has emphasized that “simplicity” has been a central focus during the development of the module, making sure it fits easily into its current chain of custody processes. PEFC is working on the approved solution for this module by May/June 2024.
FSC
FSC is introducing the concept of ‘EUDR Aligned’, to guide its certified organizations through the EUDR DDS process and simplify compliance with the EUDR. They adopt a three-step approach consisting of the FSC Regulatory Module, FSC Blockchain, and FSC Risk Management Framework. The FSC Regulatory Module offers additional requirements to assist certified organizations in fulfilling their responsibilities under the EUDR on deforestation, degradation, and legality. Meanwhile, the FSC Risk Management Framework is created to facilitate FSC-certified and non-certified organizations in developing a risk assessment and managing risk mitigation. FSC’s third solution is the creation of FSC Blockchain, which facilitates organizations to trace material through the supply chain. In addition to these solutions, FSC is preparing a Digital Compliance Upgrade, a module connecting the three solutions to create due diligence statements for easy submission to the European information system. FSC is preparing for the release of these solutions by June 2024.
Rainforest Alliance
Rainforest Alliance emphasizes the close alignment of its certification program with the EUDR, noting minor yet crucial differences in requirements. Rainforest Alliance introduced the Rainforest Alliance Policy: Alignment with the EUDR on January 15, 2024, which includes requirements for farmers. Coffee and cocoa farmers are encouraged to apply for this policy, enabling sourcing organizations to readily access the EUDR-required farmer data from participating farmers. Rainforest Alliance advises organizations to prioritize implementing an Identity Preserved system, engage with their suppliers and farmer supply base, support farmers in collecting geodata, and clarify certification benefits to stakeholders.
RSPO
RSPO has performed a gap analysis comparing its certification standard (Principles & Criteria) with the requirements outlined in the EUDR. While RSPO asserts its capability to assist certified organizations in meeting the EUDR, the analysis identified several gaps. Currently, RSPO is reassessing its processes, standards, and technical tools. They are developing a new traceability platform and ongoing review of the RSPO standards. This will support certified organizations to comply with the EUDR requirements.
4C
4C is collaborating with Global Risk Assessment Services (GRAS) to offer a solution for its certified organizations. This solution includes three steps: data collection through geo-information and legal documents, risk analysis to identify deforestation risks, and risk mitigation through regular audits and monitoring. 4C already ensures traceability throughout the entire supply chain, with data storage for five years on each batch of coffee entering or exiting the EU. Currently, several documents are published by 4C on the EUDR, including the Regulation for 4C Certified EUDR Coffee, a self-assessment, and self-declaration. In 2024, the solution became available for 4C-certified organizations, and from 1 January 2025, all certified organizations are required to follow this solution.
”While certification schemes can assist in fulfilling due diligence obligations, obtaining certification does not automatically exempt companies from their responsibilities under the EUDR. Ultimately, it is the responsibility of the EUDR operators and traders to ensure compliance with the regulation, and they may need to take additional measures beyond certification to meet these obligations.”
Helping you fulfil the EUDR Due Diligence requirements
As the deadline nears, certification schemes are actively preparing to meet the requirements of the EUDR. They aim to equip certified organizations with the necessary tools and support to ensure compliance with the EUDR and promote deforestation-free practices. Each certification scheme is implementing tailored solutions to address the challenges posed by the EUDR. With these solutions, certification schemes are poised to play a crucial role in meeting the EUDR requirements.
Peterson can provide support for businesses seeking certification, facilitating the journey towards compliance with certification standards. We can assist throughout the preparation process or provide fully customized certification solutions, including the design of process manuals, the adoption of IT systems, and risk analysis. Additionally, we can conduct a preliminary company assessment against the certification scheme, so that you know what needs to be done in order to be ready for certification.
Peterson can also provide comprehensive support in all aspects of EUDR compliance, including adapting internal procedures and training your teams, gathering data, carrying out risk assessments and mitigations and guiding you through the process of submitting your due diligence stagement. To find out more about our services visit our EUDR landing page.
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Please contact us so we can help you with your EUDR challenges. Questions? We will be glad to help you out.