From December 30, 2025, the EUDR will require European companies to ensure their supply chains are free from deforestation. The regulation targets raw materials such as rubber, coffee, cocoa, palm oil, soy, timber, cattle, and several of their derivative products. The requirements of the EUDR are extensive, and large amounts of data will need to be collected, processed, and analyzed. 

Since quality is an integral part of luxury, the highest standards of environmental and social performance must be guaranteed. Luxury goods, known for their high-quality materials, meticulous craftsmanship, and timeless design, often have a longer lifespan, making them inherently sustainable. However, sustainability must not only apply to the longevity of the products but also to their production, the materials used, and the supply chain. While many luxury companies already practice this, ESG regulations now require that these sustainability measures be transparently disclosed and proven. 

Luxury is not just about providing a unique experience and an emotional connection but also about ensuring the highest quality and longevity. For instance, a visit to a luxury restaurant isn’t just about good food; it’s about an unparalleled experience in the right atmosphere. 

Challenges in the Implementation Process   

Younger generations are increasingly focused on the sustainability of the products they buy, making responsible purchasing decisions that reflect their commitment to sustainability. Luxury brands must not only meet these expectations but also seize the opportunity to produce high-quality, sustainable products. 

The first step is ensuring that no deforestation occurs in production areas. The challenge lies in obtaining the necessary data, as luxury brands often have complex supply chains. A broad network of suppliers makes it difficult to trace raw materials. 

EUDR-Relevant Products in the Luxury Goods Industry  

The luxury industry comprises several sectors where products are covered by the EUDR. By utilizing alternative materials, luxury brands can introduce high-quality, exclusive, and more sustainable products to the market. 

In the fashion industry, leather- a key derivative product – is commonly used in handbags, designer shoes, and belts. A sustainable alternative to leather is cork, which is harvested from the bark of cork oak trees. Rubber, often used in designer shoes, can be replaced with materials derived from the guayule plant or Russian dandelion. Another eco-friendly option is jungle rubber, which is cultivated alongside other trees in Indonesia’s tropical rainforests. 

The food industry must also prove that its supply chains are deforestation-free. EUDR-relevant raw materials such as coffee, beef, cocoa, palm oil, and soy are commonly found in luxury restaurants, in chocolate production, as well as in luxury coffee brands and vegan or vegetarian delicacies. 

Palm oil, though less apparent, is also used in the luxury sector. In the cosmetics industry, palm oil is found in the production of hand creams and body lotions. 

Other products affected by the EUDR include wooden furniture or luxury accessories in the home decor sector, as well as car tires and luxury automotive interiors made from rubber or leather. 

osapiens’ software solution supports EUDR compliance  

The EUDR presents companies with challenges that are almost impossible to overcome manually. Software such as the osapiens solution for EUDR helps companies to implement the regulation efficiently and in compliance with the law. The osapiens platform solution, the osapiens HUB, offers companies several advantages for the implementation. They can implement different regulations on the platform to create synergies, as many data are relevant for several regulations. The osapiens HUB also provides an overview of the results of their risk analysis along the supply chain at a glance. This is based on the collection of supplier data and uses AI methods to assess the risk of deforestation. The osapiens HUB for EUDR solution also uses satellite imagery to determine whether the area is at risk of deforestation.   

By automating and digitizing these processes, the osapiens HUB helps luxury brands streamline the data collection process and further integrate sustainability into their overall strategy. 

Benefits of the osapiens solution for the luxury industry 

osapiens offers a holistic software platform that includes different solutions, such as the osapiens HUB for CSRD or the osapiens HUB for Due Diligence, for the implementation of ESG laws. The data collected e.g. for a risk analysis of the EUDR solution can also be used for the solution of another regulation.