Deforestation Regulation Readiness Report
Regulations like the UK Environment Act and EU Deforestation Regulation are soon coming into force. Is your company ready to meet the requirements? In January 2024, we collaborated with Censuswide to survey 300 Timber and Forest Risk Commodity Operators throughout Europe to gauge their preparedness, concerns, and perspectives in anticipation of forthcoming deforestation regulations. Download our 2024 report to hear from your peers and find out where the industry really stands.
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Key takeaways
The Compliance Challenge
Incoming deforestation regulations like the EUDR are set to reshape businesses involved in forest-risk commodities, requiring them to adapt supply chain practices to meet strict criteria for traceability and sustainability. Yet 18% of operators are still unaware of any deforestation regulations.
Time Spent on Tracking Down Customer Information
A staggering 82% of organisations reported dedicating more than half of their operational time to tracking down customer information - rising to 90% in the UK - highlighting the urgent need for more efficient processes ahead of EUDR enforcement.
Supplier Challenges Hindering Traceability Efforts
58% of respondents said their suppliers were unwilling or unable to support their efforts towards enhanced traceability. This concern was consistent across all company sizes, though Enterprises felt it most acutely at 65%.
Growth Prospects Linked to Regulations
Despite the compliance pressure, 63% believe their organisation will grow in terms of market share as a result of regulations. Larger organisations were almost twice as optimistic about the positive impact on customer growth, profitability, and market share.
Growth Potential with Traceability Solutions
50% agree that a traceability solution enables their organisation to grow positively, while 53% acknowledge it would significantly streamline timber sourcing and 51% expressed eagerness to implement such solutions.
How Interu Can Help
Solutions like Interu are designed to solve the challenges raised in this survey and harness the opportunities they present - effectively managing vast datasets, proactively pinpointing supply chain weaknesses, and transforming potential challenges into prospects for advancement and expansion.
AUTHORS
Key findings from the report:
- 18% are unaware of any deforestation regulations
- 82% spend more than half their time tracking down information for customers
- 63% say their organisation will grow in terms of market share due to regulations
- 52% say their suppliers are not willing or are unable to support their traceability effort
- 50% agree a traceability solution enables their organisation to grow positively
- 39% of their suppliers are still wholly paper-based