Seizing the EUDR Delay: How Businesses Can Lead in Sustainable Supply Chains

The EU Deforestation Regulation delay presents a golden opportunity for businesses to take the lead in sustainable supply chains. By investing in traceability systems, strengthening compliance frameworks, and building strong supplier relationships, companies can stay ahead of regulations, all whilst enhancing their market position and attracting consumers and investors who prioritise sustainability. 

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By Anna Roberts

The EU Deforestation Regulation (EUDR) is one of the most ambitious policies designed to combat deforestation and ensure supply chain transparency. While its implementation has been delayed, forward-thinking businesses are leveraging this time to gain a competitive edge. By strengthening compliance frameworks, enhancing traceability measures, and investing in new technologies now, companies can position themselves as leaders in sustainable trade and future-proof their operations.

Understanding the EUDR Delay

Originally scheduled for full implementation by the end of 2024, the EUDR has been postponed to the end of 2025. The regulation is a result of multiple challenges, including the readiness of the European Commission’s information system, which is essential for processing due diligence statements and verifying compliance; operators’ and auditors’ ability to meet stringent due diligence requirements, particularly for complex supply chains; and pressure from key trade partners. The latter include those in major commodity-producing regions, who have raised concerns about the economic and logistical feasibility of meeting EUDR standards within the original timeline.

These obstacles highlight the complexity of enforcing such a comprehensive regulation across diverse global supply chains. Many businesses have struggled with traceability and risk assessment, making compliance difficult. However, rather than viewing the delay as a setback, proactive companies are treating it as a strategic opportunity to refine their processes, build stronger supplier relationships, and gain a market advantage.

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The Business Case For Early Action

Despite the postponement, some industry leaders are not waiting until the final deadline to act. “Our customers are asking us to prove we can help them to be compliant now. They are not waiting until the end of 2025, so we can’t either,” explained a European timber trader.

This sentiment is echoed across industries reliant on forest-risk commodities such as soy, palm oil, coffee, and cocoa. Instead of treating compliance as a burden, these companies see it as an opportunity to build trust and brand credibility – 80% of consumers say sustainability is important to them, and many are willing to pay more for sustainably sourced products. It also offers a chance to attract investment: investors increasingly prioritise ESG performance, and strong compliance with sustainability regulations can improve access to capital.

What’s more, preparing for EUDR now reduces the risk of supply chain disruptions and regulatory penalties in 2026 and beyond.

Traceability Challenges and Solutions

One of the biggest challenges in EUDR compliance is securing traceability information from suppliers. A case in point: one operator had to cut ties with 50% of their suppliers because they were unable to provide the required data.

For companies managing vast networks of tier-one suppliers, ensuring compliance requires strong change leadership to enforce transparency and align supply chain partners with compliance goals; robust due diligence frameworks to pre-screen suppliers and ensure they can meet EUDR requirements, as well as advanced traceability systems to collect, verify, and report supplier data accurately.

Beyond deforestation concerns, companies must also demonstrate compliance with producer country legality requirements, including human rights protections, land use policies, and environmental laws. This necessitates a shift from reactive compliance to proactive sustainability strategies where supplier engagement is crucial.

The Role of AI in Compliance

As businesses seek ways to streamline compliance efforts, Artificial Intelligence (AI) is emerging as a valuable tool – but not one that can replace human judgement. It can assist with gathering information and automating repetitive tasks, however experts caution against over-reliance on AI for decision-making. 

Dutch EUDR specialist Eduard de Boer said AI is useful but it also comes with limitations, especially concerning risk assessment. 

“Some companies market AI as a decision-making tool, claiming it can deliver compliance with a ‘green check mark.’ That’s a dangerous oversimplification,” said de Boer. “The Netherlands’ competent authority has made it clear they won’t accept risk assessments based on AI alone. Even if an AI system is vetted by accountants, those accountants won’t be paying the fines if something goes wrong.”

While AI can enhance efficiency, human oversight remains crucial in regulatory compliance. Businesses must integrate the technology into broader governance frameworks that include manual verification and expert assessments.

Turning Compliance Into a Competitive Advantage

With 80% of consumers willing to pay more for sustainably sourced products, companies that prioritise compliance now can differentiate themselves in the marketplace. Investors and stakeholders are increasingly drawn to businesses that demonstrate strong due diligence processes.

“The EUDR may be delayed, but we have worked hard to ensure we can meet new requirements and see a huge competitive advantage in being able to do so,” said a South American exporter and European importer.

Similarly, a European builders’ merchant emphasised that setting up for the regulation will take time. “We know that doing so now will give us a real competitive edge.”

Failing to prepare for EUDR now could lead to significant financial and reputational risks, including lost market access and regulatory fines.

A Call to Action

The delay in EUDR enforcement is not a signal to pause progress – it is an opportunity to get ahead. Companies that use this time wisely will be best positioned when enforcement begins. With environmental action more urgent than ever, those who act early will not only meet regulatory demands but also secure a long-term advantage in sustainable trade.

Now is the time to turn compliance into a strategic asset – before it becomes a regulatory necessity.

Featured image: Marcelo Perez del Carpio/Climate Visuals Countdown.

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About the author: Anna Roberts is a social technologist, working to create and scale practical solutions to help elevate trust between multi-party networks. Prior to joining iov42 | Interu, where she is now Head of Market Development, Anna worked as a square rig sailor establishing zero carbon footprint trade networks between the Americas & Europe. Anna left the strategy consulting world as a VP after 12 years building bespoke simulation technologies for corporates and NGOs (inc. Unilever’s Sustainable Living Plan, IBM, Bvlgari and the NHS) to understand how to turn strategy into action at scale.