New EUDR regulations – is the printing industry ready?
The new EUDR (European Union Deforestation Regulation) introduced by the European Union aims to effectively combat deforestation and forest degradation worldwide. For companies operating in the wood, paper, cardboard, and other industries linked to areas affected by deforestation, the introduction of these regulations presents a significant challenge.
The obligation to exercise due diligence and demonstrate that products have not contributed to forest degradation forces companies to carefully verify their supply chains. The new regulations will apply to both large enterprises and small and medium-sized companies, with the latter having slightly more time to adjust to the new requirements.
The introduction of EUDR regulations imposes a number of new responsibilities on businesses, necessitating significant changes in supply chain management. For companies in the paper industry, where wood raw material plays a key role, the implementation of these regulations presents numerous challenges. On one hand, companies must ensure that wood and products containing its components, such as paper or cardboard, come from legal sources. On the other hand, they must ensure that their suppliers comply with the same stringent standards.
“EUDR forces companies to ensure full transparency and detailed control of the supply chain. For us, as a company purchasing forest-based materials, this means the need to introduce new supplier audit procedures and monitor the origin of raw materials. We are in a comfortable position because our main suppliers are the largest European paper manufacturers, who have always produced their goods with great respect for the environment, and we are confident that they will meet the EUDR requirements by providing us with the necessary information for reporting further processes to our clients” – says Agnieszka Jajszczak, Paper Management Director at Quad Europe.
“However, for some companies, finding suppliers who can meet all the regulatory requirements will be a difficult task, especially in the context of global supply chains, which are often very complex and involve many intermediary stages.” – adds Jajszczak.
An additional challenge is adapting IT infrastructure to the new requirements. Supply chain management systems must be advanced enough to enable real-time tracking of raw material origins and the archiving of necessary documentation. “We are currently investing significant resources in developing our IT systems to effectively manage data regarding the origin of paper and the printed products we manufacture. This is not only about meeting legal requirements but also about building trust with our clients, who are increasingly expecting transparency and environmental responsibility from us.”
Another aspect that companies are focusing on is the cost of implementing the new regulation. Adapting logistics processes, introducing new monitoring systems, and conducting audits all lead to increased operational costs, which, for small and medium-sized enterprises, could significantly impact the final prices of their products.
“I hope that the efforts made by manufacturers in implementing the EUDR regulation will bring the expected environmental benefits in the future, supporting more responsible and sustainable market practices” – comments the expert from Quad Europe.
5 key steps to prepare your company for implementing EUDR regulations
- Understanding EUDR regulations
Familiarize yourself with the requirements of the regulation, which products and raw materials are covered, and the due diligence obligations your company must fulfill. - Supply chain analysis
Map your supply chain, assessing the risk related to the origin of raw materials. Verify suppliers for EUDR compliance and secure the necessary documentation. - Implementing monitoring and tracking systems
Introduce systems to track the origin of raw materials and collect data. Ensure the company is ready for reporting and audits in accordance with EUDR requirements. - Training and collaboration with suppliers
Conduct training for employees and suppliers to ensure full compliance with the regulations. Include the appropriate clauses in contracts with suppliers. - Monitoring and communication
Regularly review and update procedures, monitoring compliance with EUDR. Communicate actions both internally and externally, building awareness among employees and stakeholders.
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