News & Insights | Textile Industry

Despite the EUDR’s delay brands need to take immediate action according to TrusTrace’s highly automated

Published: October 25, 2024
Author: TEXTILE VALUE CHAIN

TrusTrace has partnered with leading enterprise brands, the Forest Stewardship Council (FSC) and OpenAtlas to create a validated solution for shipment-level compliance, tailored to real-world scenarios.

TrusTrace, a global leader in product traceability and supply chain compliance, today unveiled its advanced Deforestation Compliance Solution, designed to help companies meet and prove deforestation-free shipments in alignment with the EU’s Deforestation Regulation (EUDR). The recent decision to delay enforcement until December 30, 2025, provides a crucial window for companies to thoroughly prepare and ensure their supply chains meet the rigorous standards ahead of the deadline. As setting up systems and getting all the data needed for customs clearance can take several months, proactive preparation is essential for compliance success. 

The EUDR aims to prevent deforestation by ensuring products entering the EU do not contribute to deforestation or environmental degradation. To comply, companies must provide full traceability to the plot of land and ensure their EU-bound products are free from deforestation-related practices. This is poised to have significant impacts across the retail industry, as widely used materials like rubber, wood, and leather fall within its scope.  

For businesses, navigating the complexities of EUDR is daunting; they are under immense pressure to produce granular traceability data, which makes compliance practices challenging since they need to integrate new processes into existing frameworks,” said TrusTrace CEO and Co-Founder Shameek Ghosh.  “This is where our new Deforestation Compliance Solution comes into play. It is designed to seamlessly integrate into the existing processes, ensuring that EU-bound products in the brand’s supply chain are compliant with EUDR requirements. The solution is part of the TrusTrace platform, which harmonizes data collection and actions for efficiency and proactive compliance, enabling brands to leverage the collected data to adhere to a broader set of regulations.”  

The TrusTrace Deforestation Compliance Solution, which was co-designed with leading enterprise brands to validate that it meets industry needs, enables shipment-level deforestation compliance with ease. The solution employs sophisticated automations to enable users to send hundreds of data collection requests with a single click, perform geospatial deforestation analysis in real-time, and generate pre-formatted due diligence statements for instant submission. The collaboration with OpenAtlas, a leader in geospatial analysis, ensures the highest quality satellite imagery and analysis, combining multi-spectral satellite imagery with state-of-the-art AI.  

To aid EUDR compliance TrusTrace encourages users of the platform to obtain an FSC Certification and ensure certification of their supply chain all the way back to the forest level. Material sourced from FSC certified forests and plantations is largely aligned with EUDR requirements, providing assurance that strict requirements for sustainable forestry have been met in the country of origin. 

The new solution specifically offers:

  • Shipment-level traceability: Brands can map farms and collect EUDR-required traceability data including GPS coordinates and FSC certificates for each EU-bound shipment efficiently, ensuring full traceability of products. 
  • Precise risk assessment: Brands can automatically benchmark country-level risks, conduct detailed risk assessments, and instantly verify compliance with geospatial analysis powered by  OpenAtlas satellite images – all at shipment level for precise evaluation.  
  • Real-time risk and compliance monitoring: The solution provides a comprehensive overview of data, insights, and reports for each shipment on an intuitive, easy-to-use risk and compliance dashboard, which enables users to monitor and mitigate risks while maintaining full visibility into compliance status.  
  • Automated DDS generation: Brands can automatically generate due diligence statements in the required format for each shipment, and easily submit them to the European Commission via API integration. 
  • Access to supplier support and policy teams: TrusTrace provides support on the customer and supplier level. Policy and regulation experts keep customers up to date on the latest regulatory developments, and dedicated trainers will help suppliers efficiently share their data.  

While the EUDR is top-of-mind for businesses around the world, the reality is that they are under pressure to comply with a host of regulations. Within deforestation alone, the UK Environment Act and the US Lacey Act are planned to be amended, and multiple laws require supply chain traceability and due diligence.  

According to Ghosh, TrusTrace is the perfect solution for brands to rely on to manage risk and compliance across-the-board. “TrusTrace’s proprietary data collection framework for risk and compliance enables companies to leverage the data collected across regulations. This means that they have the data foundation in place to easily comply with current and future demands, without the need for multiple individual solutions,” he concluded. “With our cutting-edge technology solutions and partner network, we are uniquely positioned to help brands achieve full supply chain visibility and meet global compliance standards.”

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