SCB Contributor Nicole Rycroft notes that progress on the EUDR (EU Deforestation Regulation) represents an important political signal of intent after months of uncertainty. However, pushing back the law's implementation by an additional year to December 2026 and exempting key commodities such as imported printed products risks weakening what needs to be a flagship regulation for forests, climate, and reduced supply chain risk. Exempting specific products like books and newspapers sets a concerning precedent for potential sector-by-sector carve-outs—continuing business uncertainty at a time when the EU needs consistent, economy-wide rules to keep forests standing and build supply chain resilience. From a supply chain perspective, EUDR, formalized as Regulation (EU) 2023/1115, mandates proof of deforestation-free status for entry into the EU market for beef, cocoa, coffee, palm oil, rubber, soya, and wood (and their derivative products).
Full traceability and deforestation-free supply chains must become the norm—many leading companies have already invested to meet and exceed these standards. What business and investment need now is clear rules and a level playing field. Brands must seize the opportunity to restructure their supply chains for transparency and deforestation-free sourcing. From a supply chain perspective, EUDR's impact on the fashion industry is particularly evident in the viscose, rayon, modal, lyocell, and cellulosic-based synthetic fibers supply chain. Lenzing (Austria), Aditya Birla Group (India, Birla Cellulose), Sateri (RGE group), Asia Pacific Rayon, Tangshan Sanyou, and Yibin Grace are leading producers in the global MMCF (Man-Made Cellulosic Fibres) market. FSC (Forest Stewardship Council) and PEFC (Programme for the Endorsement of Forest Certification) serve as certification frameworks for forest products.
From a supply chain perspective, Nicole Rycroft is founder and executive director of Canopy—an environmental organization based in Vancouver, Canada—focused on protecting the supply chains of the fashion, packaging, and publishing industries from old-growth and endangered forests. The Hot Button Report is Canopy's annual MMCF producer scorecard. Key operational requirements for EUDR compliance include geolocation (plot-level GPS coordinates), traceability, due diligence statement (DDS), and EU Information System (TRACES NT) integration. Satellite monitoring, blockchain, DNA testing, and isotope analysis are among the leading supply chain verification technologies. Global Forest Watch (WRI), Trase, MapHubs, Satelligence, Descartes Labs, and Planet Labs are leading satellite-based forest monitoring platforms. RSPO (Roundtable on Sustainable Palm Oil), RTRS (Round Table on Responsible Soy), Bonsucro (sugar), Rainforest Alliance, and UTZ are commodity-specific sustainability standards.
From a supply chain perspective, the EUDR compliance deadline was originally December 30, 2024—then delayed by one year (December 30, 2025) by the EU Commission and Council, and now further postponed to December 30, 2026. For SMEs (Small and Medium-sized Enterprises), the deadline is June 30, 2026. EUDR supersedes and expands on EUTR (EU Timber Regulation, 2013) and FLEGT (Forest Law Enforcement Governance and Trade) frameworks. Brazil, Indonesia, Malaysia, Vietnam, Cambodia, Côte d'Ivoire, Ghana, Cameroon, Peru, and Colombia are among the countries most affected by EUDR implementation. The fashion industry brands H&M, Inditex (Zara), Shein, Uniqlo (Fast Retailing), Nike, Adidas, VF Corporation, PVH, Levi Strauss, Patagonia, Kering, LVMH, and Burberry must restructure their supply chains under EUDR. The EU Strategy for Sustainable and Circular Textiles, ESPR (Ecodesign for Sustainable Products Regulation), and DPP (Digital Product Passport) are complementary textile-specific regulations. In conclusion, Rycroft's call for EUDR compliance clearly demonstrates fashion's opportunity to lead in forest risk management.
Key Takeaways:
1. EUDR compliance deadline pushed back one additional year to December 2026.
2. Printed product exemptions like books and newspapers create a concerning sector carve-out precedent.
3. Nicole Rycroft, Canopy founder, writes as an SCB Contributor.
4. Full traceability and deforestation-free supply chains must become the norm.
5. Brands must seize the opportunity for transparency and responsible sourcing.
