Wood is widely used across various sectors, including construction, the paper industry, and energy production. Its versatility makes it one of the most frequently used natural resources. The high demand for this resource triggers consequences like illegal logging and far-reaching environmental damage. Around four billion cubic meters of wood are harvested each year, highlighting the need for more sustainable wood use and global forest protection. 

Aiming to curb global deforestation and its wide-ranging consequences, the EU has adopted the EU Deforestation Regulation (EUDR). EUDR mandates companies to prove that their products don’t contribute to deforestation or forest degradation. Furthermore, companies need to ensure that their products are produced according to the laws of the country of origin. 

EUDR objectives and scope 

The overall goal of EUDR is to ensure that certain commodities (cattle, cocoa, coffee, oil palm, rubber, soy, and wood) traded in or exported to the EU don’t contribute to deforestation or forest degradation. Deforestation is defined as the conversion of forests to agricultural use, whether human-induced or not.  

By enforcing this regulation, the EU aims to help preserve vital forests, which are home to millions of species and essential for global biodiversity. Furthermore, 32 million metric tons of carbon emissions caused by EU consumption and production of the relevant commodities are projected to be cut each year. 

For medium-sized and large companies, the regulation comes into force on December 30, 2025, and for most SMEs on June 30, 2026. 

Wood and furniture: a sector under scrutiny

Products made from wood are an integral part of our everyday lives. In addition to the many different industries that require wood for production, trends like “fast furniture” lead to a high demand for wood. The term “fast furniture” refers to the design and production of low-cost furniture that’s built to last only a short time. This leads to increasing turnover and greater demand for wood, which contributes to deforestation. As a result, fewer trees are left to absorb carbon dioxide, and additional CO₂ is released from the trees that are cut down. 

High demand for cheap wood can lead suppliers to cut costs, for example by turning to illegal logging. In some developing countries, weak law enforcement and limited oversight can make it easier for these activities to go unaddressed. Corruption further fuels the problem, as officials may accept bribes to ignore violations or grant illegal access to forests. In many tropical countries, illegal logging is estimated to make up between 50% and 90% of total logging activity. The consequences are sweeping – not just for the environment, but also for economies and communities. Legal and sustainable logging operations often cannot compete with cheaper illegally harvested timber, thus resulting in a vicious cycle that discourages investment in ethical forestry. 

Such high demand is evident in the furniture industry, the third-largest consumer of wood globally. Its revenues are expected to approach $800 billion in 2025, with continued growth projected in the years ahead. In addition to timber, other commodities commonly used in furniture, such as leather and rubber, also fall under the scope of EUDR. As result, furniture manufacturers need to take a broader view of their supply chain to ensure full compliance. Transparent supply chains are important for meeting regulatory requirements. They can also help companies align with customer preferences, which are shifting towards furniture made of environmentally sound materials. Therefore, it’s becoming increasingly important for companies to prove that the production of their products did not contribute to deforestation.

What does compliance look like?

To comply with EUDR, companies must trace the materials used in their products back to the exact plot of land where the wood was harvested. However, this traceability often increases complexity by a large number of intermediaries in the supply chain. In tropical regions in particular, many smallholder farmers may be involved, adding further complexity. As a result, raw materials often pass through multiple hands and are mixed or processed before becoming part of the final product. Since this makes it harder to trace the materials, complying with EUDR becomes even more challenging. 

The EUDR mandates a three-part due diligence process. Companies must collect detailed information about the product, supplier and geolocation of harvest to prove that the wood is deforestation-free and legally sourced. In addition, they are required to carry out a risk assessment to evaluate the risk that the wood is linked to deforestation or illegal harvesting. Finally, companies must submit a due diligence statement confirming that no or only negligible risk has been identified. 

How osapiens supports EUDR compliance

Global supply chains are rarely simple. Especially in regions with higher geopolitical risks, it can be difficult to obtain reliable information regarding deforestation or carry out independent audits. 

The osapiens HUB for EUDR helps overcome these obstacles and ensures end-to-end compliance. It guides companies through the entire compliance journey – from data collection to risk analysis and the automated generation of the Due Diligence Statement (DDS). 

Using satellite data and AI-driven algorithms, the osapiens HUB for EUDR helps companies conduct accurate risk assessments, simplify otherwise complex tasks, and improve efficiency and accuracy of results. 

Turning regulation into opportunity

While EUDR poses challenges to companies, compliance can also entail various advantages for companies. osapiens helps companies not only to comply with EUDR but also to go beyond by enhancing supply chain transparency, to remain competitive in the European market and demonstrate commitment to social and environmental matters.