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Our newly updated ebook, “Due Diligence: Mastering EUDR Risk Assessment,” provides the comprehensive framework you need to: ✅ Understand the implications of the new country risk classifications ✅ Implement effective risk assessment methodologies ✅ Transform compliance challenges into business opportunities ✅ Leverage digital traceability solutions for seamless implementation Download the ebook now!
One year has passed since the launch of our first European Union Deforestation Regulation (EUDR) playbook. With implementation now extended to December 30, 2025, companies have a critical window to turn compliance challenges into competitive advantages. At Finboot, we have seen firsthand how companies shift from one stage to another in their EUDR compliance journey. Through our work with organizations across various sectors, we’ve gained valuable insights into what makes for successful implementation and how digital solutions can streamline this complex process.
The path to EUDR compliance involves several key stages. Once relevant commodities and products have been identified, companies must gather necessary documentation to meet due diligence requirements. This process encompasses thorough information collection, detailed risk assessment, and effective risk mitigation strategies. But beyond mere compliance, we’ve discovered that organizations approaching EUDR strategically are uncovering significant business benefits—from improved supplier relationships to enhanced operational efficiency.
By adhering to these steps and ensuring all required documentation is in place, businesses can effectively prepare their supply chains for the upcoming implementation of the EUDR, thereby minimizing risks and enhancing their sustainability practices.
This ebook provides a comprehensive framework for conducting effective EUDR risk assessments while revealing the hidden business opportunities that emerge when regulatory compliance is approached strategically. By leveraging digital traceability solutions like our MARCO Track & Trace platform and adopting a forward-thinking mindset, organizations can not only meet EUDR requirements but also enhance operational efficiency, strengthen supplier relationships, and build more resilient, transparent supply chains.
This approach creates value that extends far beyond regulatory compliance, positioning businesses for success in an increasingly sustainability-focused market.
The European Union Deforestation Regulation (EUDR) establishes unprecedented requirements for companies importing or placing specific commodities and derived products on the EU market. These requirements focus on ensuring products are both deforestation-free and produced in accordance with relevant legislation in the country of origin.
The EUDR entered into force on June 29, 2023, with most obligations applying from December 30, 2025. For micro and small enterprises established by December 31, 2020, obligations apply from June 30, 2026 (except for products already covered under the EU Timber Regulation).
Key commodities affected include cattle, cocoa, coffee, oil palm, rubber, soya, and wood, along with their derived products as specified in Annex I of the regulation. For businesses handling these commodities, the EUDR introduces substantial due diligence obligations that require systematic risk assessment and mitigation.
The European Commission has recently introduced significant simplifications to ease the implementation burden of the EU Deforestation Regulation (EUDR), while preserving its environmental objectives.
All updated measures aim to significantly reduce the due diligence statements companies must file, addressing key industry demands. The goal is to ensure easy and efficient data entry for all users, allowing organizations to focus more on substantive compliance rather than administrative burdens.
On May 22 (2025), the European Commission adopted the EUDR's benchmarking system, which classifies countries based on deforestation risk for its seven key commodities. This classification helps operators with due diligence and authorities with enforcement, while also encouraging countries to improve their sustainable agriculture and reduce deforestation.
The 'high risk' category currently includes Belarus, Democratic People's Republic of Korea, Myanmar, and the Russian Federation. Major producers like Brazil and Indonesia have been classified as 'standard risk'.
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While these classifications simplify monitoring for regulators, they do not relieve operators from liability.
The EU Commission’s recent EUDR simplification measures continue the pattern established in the Omnibus package, with both initiatives focused on easing regulatory burden and strengthening European competitive advantage. In our work with clients across sectors, we’ve observed that forward-thinking organizations are approaching EUDR not just as a compliance exercise but as a strategic opportunity.
By proactively addressing EUDR requirements with solutions like our MARCO Track & Trace platform, businesses can build more resilient supply chains with enhanced visibility, strengthen relationships with suppliers and customers, improve operational efficiency through better data management, respond to growing consumer demand for sustainable products, mitigate reputational risks associated with deforestation, and create competitive differentiation in sustainability performance.
The EUDR represents an opportunity to transform sustainability from a compliance function to a business driver. Organizations that approach the regulation with this mindset will not only achieve compliance but also create enduring business value—something we’ve witnessed firsthand through our work with industry leaders.
In our experience working with forward-thinking clients, we've observed the tangible benefits of adopting cutting-edge technologies to support sustainable practices, such as circular economy initiatives. Two key tools have emerged as game-changers in this space:
Our clients are already reaping the rewards of implementing these technologies. They're not only enhancing their sustainability practices but also gaining competitive advantages in terms of operational efficiency, regulatory compliance, and market differentiation.
The Cepsa Case: Digital Product Passports for Homecare Products
Finboot’s MARCO Track & Trace has allowed Cepsa to implement digital traceability systems for tracking each batch of vegetable oil from its origin to its use in biodegradable surfactant production, in addition to automating bookkeeping and determining what percentage of output is from renewable and circular inputs.
The SABIC Case: Blockchain to Deliver Sustainable Packaging
SABIC, the global leader in the chemicals industry, becomes the first in their industry to unlock batch-level traceability from waste to packaging for their TRUCIRCLE products through MARCO Track and Trace.
The project, with advanced recycling pioneer Plastic Energy and packaging specialist Intraplás, uses the Finboot application to support end-to-end digital traceability of circular feedstock in customer products.
The Repsol Case: Full Traceability of net-zero emissions fuels (HVO)
Repsol has been a client since 2018 and uses our digital traceability solutions extensively across several business areas. They use our digital ecosystems for the traceability of low-carbon fuels like HVO (Hydrotreated Vegetable Oil), and circular chemical products like packaging.
The transition to a circular economy is not just an environmental imperative; it's becoming a business necessity. As we move forward, the companies that will thrive are those that embrace these principles and leverage innovative technologies to create value while contributing to a more sustainable future.
Due diligence is essential for managing supply chain risks under the EUDR. Drawing from our experience implementing MARCO Track & Trace across diverse supply chains, we’ve developed comprehensive understanding of effective risk assessment processes. The core components include conducting thorough assessments to identify deforestation-related risks, developing strategies to mitigate these risks (such as sourcing from certified suppliers and enhancing traceability), and regularly monitoring and verifying supply chain practices for EUDR compliance.
According to the European Commission, operators are responsible for reviewing their activities, collecting relevant data, analyzing it, and taking steps to mitigate risks unless they deem compliance risk very low. They also shall review the due diligence system at least once a year. This cyclical approach ensures that risk assessment remains current and responsive to changing conditions.
It’s important to understand that risk assessment must address multiple criteria to determine the likelihood of non-compliance. These include country-level risk factors (such as country risk classification, prevalence of deforestation or forest degradation, and rate of illegal production), product-specific factors (including supply chain complexity, number of production locations, and manufacturing complexity), and supplier-related considerations (such as history of compliance issues and evidence of illegal practices).
Within the framework of the European Union Deforestation Regulation (EUDR), a fundamental technical element for demonstrating compliance is the GEOJSON file. This file is indispensable as it contains accurate geospatial information detailing the exact location where the commodities being placed on the EU market were produced. Essentially, the GEOJSON file serves as a digital map, meticulously outlining the boundaries of all the distinct land parcels where the relevant crops were grown or the materials were sourced prior to their importation into the European Union. This granular level of geographical precision is crucial for ensuring the traceability and legality of supply chains, a core objective of the EUDR.
Finboot’s integrated solution for EUDR compliance, MARCO Track & Trace, is specifically designed to streamline the handling of these intricate GEOJSON data files. Recognizing the potential complexities involved in managing and submitting such geographical information, MARCO Track & Trace offers flexible options for suppliers. They can conveniently upload their GEOJSON files through our user-friendly Supplier Portal, which provides an intuitive interface guiding them through the submission process. Alternatively, for suppliers with more integrated digital infrastructure, MARCO Track & Trace supports direct system integration, enabling a seamless and automated transfer of GEOJSON data. This dual approach ensures that suppliers of varying technical capabilities can efficiently fulfill the EUDR requirements regarding the provision of precise geographical data, thereby simplifying the overall compliance process and fostering transparency within sustainable supply chains.
Supporting information like third-party verification schemes and certifications aligned with EUDR requirements, along with legal compliance evidence documenting compliance with country-of-production legislation and land tenure rights, are also essential components of a comprehensive risk assessment.
Through our work with clients, we’ve identified that the challenge of collecting and verifying data from suppliers is a major barrier for businesses. Information must be gathered from numerous sources, standardized for regulatory compliance, and updated to reflect supply chain changes. This process is resource-intensive and error-prone, particularly with manual inputs. Additionally, the lack of standardized data formats among suppliers complicates efficient information consolidation.
Our MARCO Track & Trace platform addresses this challenge through its Supplier Portal, allowing seamless communication and data sharing. Our system can integrate directly with ERP systems, automating data collection and verification processes.
MARCO Track & Trace interfaces with the TRACES System, the European Commission's online platform for EUDR, and submits data directly on behalf of your company, utilizing all information collected from your suppliers and internal systems.
The EUDR defines “negligible risk” as a situation where, after full assessment and application of appropriate mitigation measures, the commodities or products show no cause for concern regarding compliance with deforestation-free and legality requirements. Our experience implementing deforestation risk assessment tools has shown that achieving negligible risk status requires comprehensive collection of all required information and documentation, thorough assessment against all risk criteria, implementation of mitigation measures where needed, and verification that remaining risk is indeed negligible.
Achieving negligible risk status requires:
One of the key features of our MARCO Track & Trace solution is its integration with specialized partners for deforestation risk analysis. We are sending this information to our partner called OpenAtlas). We can also use other different deforestation suppliers (who will provide the GEOJSON file), and what they’re going to do is check through the cut date and harvest date if that product has or has not been deforested. This automated risk status analysis provides clear indicators, including deforestation percentage and risk status, enabling companies to make informed decisions.
Our system provides these critical metrics clearly and automatically, eliminating the need for manual analysis of complex geographical data.
When risk assessment identifies non-negligible risks, Article 11 of the EUDR requires implementation of mitigation measures. Effective strategies include:
Our MARCO Track & Trace platform specifically addresses these needs by providing automated workflows for risk assessment and mitigation. When potential risks are identified, the platform can trigger appropriate verification processes, including detailed documentation collection and geographical analysis of sourcing locations.
The chosen mitigation strategies should be proportionate to the identified risks and documented as part of the due diligence system. Our platform facilitates this documentation, ensuring that all risk mitigation activities are properly recorded and available for review by authorities if needed.
Supply chain complexity is explicitly recognized as a risk factor under Article 10(2)(i) of the EUDR. Through our work implementing traceability solutions, we’ve seen how this complexity creates particular challenges for compliance. The European Commission’s guidance clarifies that complexity increases risk because tracing products back to production locations becomes more difficult, information consistency may be compromised, and control points may be more numerous and harder to verify.
Factors that increase supply chain complexity include:
Our MARCO Track & Trace platform is specifically designed to address these complexity challenges by providing a unified system for tracking products from source to market.
What we do is link it directly with your batch ID. So imagine you have your ERP connected, and then you will be able to connect this specific import and process with as many batch IDs in your production process as you want. What this will enable us in the future is to link and trace back from the raw material to the final product that you are creating into that import process.
Companies must map their supply chains to identify complexity factors and implement appropriate systems to maintain traceability despite these challenges. Our platform facilitates this mapping and provides the digital infrastructure needed to maintain clear traceability even in complex supply chains. Finboot has also embedded AI directly into its award-winning application, MARCO Track & Trace. MARCO-AI Copilot enables our customers to configure their product supply chains by describing them in any natural language – No Coding required. Picture this: You describe your supply chain using natural language, like English (or any language MARCO Track & Trace understands), and instantly, it's built and adjusted right before your eyes.
Enhanced supply chain transparency delivers business benefits far beyond regulatory compliance. Through our partnerships with leading organizations, we’ve witnessed how fostering an environment of openness enables companies to not only meet legal requirements but also enhance their operational resilience. This proactive approach enables businesses to adapt swiftly to market changes and consumer demands, ultimately driving growth and innovation.
The value created includes risk mitigation through early identification of potential compliance issues before they become costly problems, operational efficiency via streamlined processes and reduced manual documentation requirements, improved supplier relationship management through shared visibility and aligned incentives, enhanced customer trust through verified sustainability claims that strengthen brand reputation, continued market access to the EU with minimal disruption, and a foundation for future sustainability initiatives and product development.
Digital traceability solutions transform EUDR compliance from a documentation burden to a strategic business enabler. Technologies like blockchain, IoT sensors, AI and integrated data platforms enable:
By digitalizing EUDR compliance, companies not only reduce administrative workload but also create valuable data assets that inform broader business decisions. Digital solutions like Finboot’s MARCO TRACK & TRACE enable organizations to move beyond checkbox compliance to strategic advantage:
As we mentioned, we've integrated AI capabilities into MARCO AI, the world's first AI co-pilot for green supply chain management. This innovative solution dramatically reduces supply chain configuration time by over 98%, enabling users to set up complex traceability systems in seconds without technical expertise and getting unparalleled efficiency and transparency across global supply chains.
Our MARCO Track & Trace Supplier Portal is a powerful tool designed to provide suppliers with seamless access for submitting essential sustainability data, optimizing processes, and enhancing collaboration throughout the supply chain.
A dedicated portal can be provided to suppliers for information submission. Alternatively, a designated email inbox can be established for information transfer. However, a purpose-built supplier portal, accessible via a unique URL, has been developed to streamline the submission of required information.
This digital platform acts as a central point for sharing information, managing processes, and monitoring compliance, changing how companies work with their supply chain partners. Key features include
Our application also provides risk management alerts, including high-risk notifications (automatic alerts for suppliers marked as high-risk based on their sustainability scores or compliance metrics) and actionable insights (offering suggestions for improvement to help suppliers effectively address identified risks).
As a best practice approach, MARCO Track & Trace generates customized forms for data portals, balancing security and accessibility. These forms can be sent automatically within workflows or integrated via API with purchase orders. Suppliers receive personalized links with pre-filled information, reducing errors and enhancing security through authentication methods. Options include two-factor authentication (2FA) or secure sign-in with supplier credentials, ensuring a robust experience for data integrity and user access.
Major chemical company Evonik has transformed its approach to palm oil sourcing through our digital traceability solution. By implementing a comprehensive digital ecosystem that tracks palm oil from plantation to final product, the company has not only positioned itself for EUDR compliance but also strengthened its market position.
The solution enables Evonik to verify palm oil origins with plantation-level precision, document compliance with both EU requirements and local legislation, provide customers with verified sustainability information, reduce supply chain risks through enhanced visibility, and respond rapidly to emerging deforestation concerns.
This approach has created measurable business value through premium pricing for certified sustainable products, reduced compliance costs, and strengthened customer relationships. The return on investment extends well beyond regulatory compliance alone, demonstrating how strategic implementation of compliance solutions can create broader business value.
Under the EUDR, operators must collect specific information about their relevant products and share it electronically into the TRACES System, the European Commission’s online platform for EUDR, through a due diligence statement. As we mentioned, MARCO Track & Trace interfaces with the TRACE System and submits data directly on behalf of your company, utilizing all information collected from your suppliers and internal systems.
The system also captures reference numbers and verification numbers from TRACES submissions, which are essential for maintaining the chain of compliance documentation throughout the supply chain. Both of them will be needed to share with your supplier or with any other party in the supply chain process to be able to gather this information.
For companies handling composite products that contain multiple relevant commodities, information requirements apply to each relevant commodity within the product. This creates significant data management challenges, but our MARCO Track & Trace platform has been designed to integrate seamlessly with TRACES, automating the submission process and ensuring that all required information is properly formatted and validated before submission. This process will finish. And inside our tool, those steps have been fulfilled with the specific information coming from your supplier.
Article 12 of the EUDR requires operators to maintain a documented due diligence system and review it at least annually. Based on our implementation experience, best practices include:
At Finboot, we also recommend using the ACCEPTANCE Server training platform to familiarize your team with the TRACES system. This replica environment provides a risk-free space to practice submissions and ensure that your processes are aligned with system requirements before you begin making actual compliance declarations.
When implementing EUDR compliance systems, companies face a critical decision: build custom solutions internally or leverage existing market offerings like our MARCO Track & Trace platform. Key considerations include:
Purpose-built solutions like Finboot’s MARCO Track & Trace offer faster implementation, lower costs, and reduced compliance risk compared to in-house development through seamless integration with existing systems, minimizing disruption and providing specialized EUDR compliance functionality. This allows companies to leverage regulatory and traceability expertise without diverting internal resources.
The EUDR is just one part of a broader regulatory trend toward sustainable supply chains. Other relevant regulations include:
Our MARCO Track & Trace platform is designed with regulatory convergence in mind, enabling companies to create compliance systems that scale across multiple regulations. This approach avoids the need for separate systems for each requirement, reducing both cost and complexity while ensuring consistent application of sustainability principles across the organization.
As demonstrated in our platform demo, the system’s modular architecture allows for configuration to meet specific regulatory requirements while maintaining a consistent core functionality. “We have many different workflows, which are orchestrated processes that are going to be performed and connected to one another,” explains Álvaro Llobet. This flexibility ensures that the system can adapt to changing regulatory requirements without requiring complete redevelopment.
The business case for integrated EUDR compliance solutions extends well beyond avoiding penalties. Value drivers include:
Organizations that implement robust digital solutions like our MARCO Track & Trace platform typically achieve payback periods of 12-24 months, with ongoing returns through improved operational performance. This return on investment makes the business case for digital compliance solutions compelling even beyond the regulatory imperative.
The EUDR represents both a compliance challenge and a strategic opportunity. Organizations that approach the regulation with a business-focused mindset will develop capabilities that deliver value far beyond mere compliance. At Finboot, we’ve witnessed how forward-thinking companies are leveraging this regulatory shift to transform their approach to supply chain management and sustainability.
By implementing comprehensive risk assessment processes supported by digital traceability solutions like our MARCO Track & Trace platform, companies can transform regulatory requirements into business advantages. These capabilities not only ensure EUDR compliance but also position organizations for success in an increasingly sustainability-focused business environment.
The time to act is now. With just over a year remaining before full enforcement begins, companies must move quickly to assess their supply chains, implement appropriate solutions, and transform potential disruption into competitive advantage.
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