From Books to Lumber: The Impact of the EUDR on the Paper, Pulp and Printing Industry

The EU’s Regulation on Deforestation-free products (EUDR) aims to protect forests and reduce deforestation. Beginning at the end of 2024, companies will have to prove the origin of their raw materials if they trade any of the following seven materials or their by-products within the EU: coffee, cocoa, cattle, palm oil, soy, rubber and wood. This blog post focuses on wood, specifically the pulp derived from it, and addresses a key question: Which “pulp, paper and printing” products are covered by the EU regulation?

Industry Challenges

ESG (Environmental, Social, and Governance) regulations such as the EUDR present a number of challenges for companies. A pressing issue across all industries is the sheer volume of data that needs to be collected and processed. Companies must prepare this data in such a way that the origin of the raw materials for their products can be accurately traced. This requires comprehensive collection from every supplier in the supply chain. Manual processing of this data is not feasible. For pulp products, such as paper or books, the challenge is further complicated by the blending of raw materials from different mills during various stages of production. Tracing which cellulose fiber came from which specific plot of land becomes nearly impossible – a problem is often referred to as the “silo problem” because materials are often mixed and stored in silos. 

Despite the complexities, this problem has to be solved somehow. Therefore, it is critical that all relevant data for every raw material component is accessible and traceable.  Mixing products from farms that provide adequate data with those that do not should be avoided to comply with the regulation. 

EUDR Relevant Products in the Pulp, Paper and Printing Industry

Many products in the pulp, paper and printing industry fall under the EUDR because they use wood and its derivatives. These products include for example 

• Paper: From writing and printing paper to craft and craft paper, (sticky) notes, and specialty papers such as receipts, cards, and envelopes. 
• Packaging: Cartons, corrugated boxes and other paper-based packaging materials. 
• Books and Printed Products: Books, pamphlets, newspapers and magazines.
• Hygiene Products: Paper towels, toilet paper, napkins, as well as diapers, wipes, or sanitary products such as pads or tampons. 
• Party supplies: Paper cups and plates, napkins, and filters. 

Pulp and paper products can also be found in LCD screens, food packaging, some clothing, or even used as insulation. 

Sustainable Publishing: Publishers on the Road to EUDR Compliance

Publishers of books, magazines, and newspapers face unique challenges in complying with the EUDR. Since paper is the primary material for printed media, publishers must ensure that their paper sources do not contribute to deforestation. This requires accurate supply chain traceability and careful selection of paper and pulp suppliers. 

For publishers, this means 

• Transparent supply chains: Publishers must ensure that their paper suppliers can prove the origin of the wood used in their products. Close collaboration with suppliers is essential to collect and verify the necessary data to meet EUDR requirements. 
• Data management: The amount of data that needs to be collected and analyzed is enormous. Publishers must implement robust systems that help them manage, analyze, and demonstrate compliance with EUDR effectively. 
• Sustainable procurement: Publishers can use the EUDR to drive sustainability in their businesses, for example by switching to sustainable raw materials and sourcing strategies. This can enhance their brand reputation and appeal to environmentally conscious customers. 

Some publishers have already begun to focus on sustainable sourcing strategies by using certified paper from responsibly managed forests. But beware: such certifications alone are not sufficient for EUDR compliance. However, certification programs often facilitate data collection and thus contribute positively to meeting regulatory requirements. 

Home Improvement and Hardware Stores: EUDR-Compliant Solutions for Greeting Cards, Craft Paper, and Lumber

The DIY industry, including hardware stores and manufacturers of greeting cards, craft paper, and lumber, is a rapidly growing market. However, companies in this sector also need to comply with the EUDR as wood is often a fundamental component in many of their products. 

The following issues are particularly relevant to this sector: 

• Sustainable materials: Manufacturers of DIY products need to ensure that their materials come from traceable sources. This requires information from suppliers. The use of FSC- or PEFC-certified materials can facilitate access to the data required for EUDR compliance. 
• Traceability: As in other industries, supply chains need to be transparent. This means being able to trace the origin of raw materials back to their sources. 
• Customer communication: Hardware retailers and manufacturers can use EUDR compliance as a marketing advantage by informing customers about the sustainability of their products. This can build customer confidence and increase sales. 
• EUDR compliance is especially important in hardware stores, where wood products are a major offering. Customers increasingly value sustainable products and being deforestation-free can be a competitive advantage. 

A Smart Solution: How osapiens Facilitates EUDR Compliance

The osapiens platform solution provides the pulp, paper and printing industry with comprehensive support for EUDR compliance. The platform, osapiens HUB, enables companies to make their supply chains transparent and see the origin of their raw materials at a glance. Using the platform, data can be seamlessly integrated and analyzed. This enables companies to bring together information from multiple sources to get a comprehensive view of their supply chain. This data integration enables accurate monitoring and helps identify and mitigate potential risks. 

Manufacturing Risk Assessment

Approximately 6 million tonnes of pulp are imported into the European Union each year, primarily coming from Brazil, Chile and the USA. The EUDR Country Benchmarking will classify the countries of origin into different risk categories. While the EU has yet to provide further details, it is expected that some of these countries will be classified as “high risk” due to ongoing deforestation.  As a result, the country of origin is a key factor in the risk analysis required for EUDR compliance, which also includes assessments of working and supply conditions. 

A software solution for compliance should minimize the workload, so that companies can continue to focus on their core business activities. On the osapiens HUB, companies can view risk analyses for suppliers and production steps at a glance. This allows them to take targeted action to minimize potential risks. By identifying areas of risk, companies can be proactive and adjust their strategies to ensure compliance. 

The Path to more Sustainable Practices in the Pulp, Paper and Printing Industry 

The osapiens AI-based software solution automates all parts of compliance processes that can be automated, including the creation and submission of Due Diligence Statements. This saves time and significantly reduces the administrative burden on companies. 

While the EUDR presents a challenge for pulp, paper and printing companies, it also offers an opportunity to develop more sustainable business models, achieve sustainability goals and strengthen market competitiveness. By leveraging technologies such as the osapiens platform solution, companies can ensure EUDR compliance while achieving their sustainability goals. Improving supply chain transparency and traceability will play a central role in the fight against deforestation and the promotion of sustainable practices across the industry.