Deforestation has reached critical levels, with the past three decades witnessing an alarming 10% loss of forest land—an environmental crisis that demands urgent action. In response, the European Union Deforestation Regulation (EUDR) sets a new global standard, ensuring that products entering the EU market are deforestation-free and legally sourced. 

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More than just a compliance measure, the EUDR represents a shift towards responsible sourcing, and as companies navigate these new obligations, technology and data-driven solutions will play a very important role in achieving compliance, that’s why Flavia Sales recently hosted an insightful conversation with Álvaro Llobet and Harry Marshall on the topic.

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Meet the Experts

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Álvaro Llobet is the Head of Product at Finboot, where he plays a pivotal role in driving innovation and creating solutions to help businesses comply with complex regulations such as the EUDR. Álvaro brings a wealth of experience from his diverse roles at Finboot, working closely with large enterprises to help them navigate regulatory requirements and adopt sustainable supply chain practices.

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Harry Marshall is the CEO and co-founder of OpenAtlas, a company that leverages remote sensing and geospatial technology to help businesses monitor and verify deforestation. Harry’s expertise lies in using satellite imagery and machine learning to provide businesses with actionable insights.

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Flavia Sales is the Marketing Manager at Finboot, leading EUDR content initiatives. Having moderated several Finboot interviews, she brings valuable experience to this discussion.

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EUDR Compliance Extends Beyond Deforestation Monitoring

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While deforestation monitoring plays a crucial role in EUDR compliance, it's only one piece of the larger regulatory puzzle. As highlighted by Harry Marshall, achieving comprehensive EUDR compliance requires more than just assessing the risk of deforestation; it needs a multifaceted approach that integrates traceability, risk analysis, verification, real-time data, etc. across the entire supply chain. That’s why, just as a Swiss Army knife combines multiple functions into a single tool, businesses must combine various specialized services to meet the regulation’s complex requirements:

1. Businesses must first establish traceability within their supply chains. Without a clear understanding of where products originate and the producers involved, due diligence cannot be effectively carried out. This is where the traceability capabilities provided by platforms like Finboot come in, allowing businesses to map their supply chains.
2. Once traceability is established, the next step is risk assessment. Companies must evaluate the environmental and legal risks associated with their producers and suppliers. While OpenAtlas plays a pivotal role in providing risk analysis through satellite imagery and geospatial technology, it is essential to combine this with additional risk management tools to ensure comprehensive compliance.
3. Verification is another crucial component of the process. Businesses must have access to defensible evidence that proves their supply chains are free from illegal deforestation and other non-compliant activities. 

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Álvaro Llobet further emphasized the significance of automation in this process. As the EUDR requires near real-time reporting, businesses need automated systems that can integrate data from multiple sources and provide up-to-date compliance insights. Without automation, managing the sheer volume of data and ensuring compliance would be overwhelming. Finboot’s integration with OpenAtlas allows businesses to automate much of this process, making compliance not only more efficient but also cost-effective.

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Integrated EUDR Tools vs. Standalone Solutions

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It’s possible for businesses to engage multiple service providers—such as traceability systems, audit and verification tools, and remote sensing technology. However, this fragmented approach can lead to inefficiencies, data silos, and unnecessary complexity in the compliance process. 

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The reason why it’s inefficient to work with disconnected solutions is because each service provider operates with its own data and systems, creating complications when trying to standardize information or communicate between various platforms, and this lack of integration increases the risk of errors and gaps in data reporting.

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An integrated solution, on the other hand, streamlines the compliance process by consolidating various tools into one unified platform. By integrating traceability, verification, and remote sensing technologies into a tailored solution, businesses can eliminate the inefficiencies of managing multiple systems.

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Marco Track & Trace for EUDR Compliance

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The complexity of EUDR compliance lies not just in data collection but in how that data is managed and verified, that’s why MARCO Track & Trace is designed to align perfectly with this integrated approach. As Álvaro mentioned, the platform addresses it by offering a flexible and customizable solution that adapts to the specific needs of each business, regardless of industry. To explore these industry-specific challenges, we have launched a blog series on how different sectors are addressing the regulation. So far, we’ve covered the wood and forestry industries, as well as the food and beverage sector.

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One of the standout features of MARCO Track & Trace is its ability to handle the large volumes of data required for EUDR compliance. Every company has different obligations under the regulation (e.g. if you are importing into the EU or buying inside of the EU), so the platform offers multiple data collection methods, such as integrations with suppliers, mailboxes, or an intuitive supplier portal that allows for easy submission of required information. 

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After the data is collected, the platform orchestrates it in a way that allows for smooth submission to the EU’s TRACES portal. This automated process eliminates the inefficiencies of manually handling data and submitting it to different platforms. 

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However, data collection and orchestration are only part of the solution. The core of EUDR compliance is ensuring that the raw materials sourced do not contribute to deforestation. This is where our partnership with OpenAtlas stands out. MARCO Track & Trace does not directly handle deforestation verification, but OpenAtlas specialize in real-time monitoring and deforestation verification through satellite imagery and machine learning. 

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What further sets MARCO Track & Trace apart is its use of blockchain technology to guarantee data integrity. Every piece of data that enters the platform is immutable, verifiable, and certified, offering an additional layer of trust and transparency. This feature is particularly valuable when sharing data between enterprises, regulators, and other stakeholders, as it ensures that the information cannot be altered.

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Market Perceptions and Best Practices

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Understanding how the market perceives EUDR compliance and learning from best practices can make a significant difference in a business’s approach. While we’ve mentioned that no two businesses are the same, they share many similarities when adapting to EUDR requirements. The challenge lies not just in compliance but in doing so efficiently.

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One of the most critical best practices is to start early. Although the enforcement delay offers temporary relief, it should not translate into inaction. We are seeing that many organizations mistakenly believe they can address compliance closer to enforcement, only to discover data gaps that require time to resolve. Early verification of supply chain data helps businesses avoid last-minute stress.

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Moreover, a key challenge in implementing EUDR is the need for cross-departmental collaboration. Compliance isn’t just a sustainability issue—it requires coordination across business, supply chain, operations, and IT teams. Each of these areas brings different complexities that must align for successful implementation. As Harry mentioned, starting early is essential because integrating multiple systems, processes, and people takes time. The sooner companies begin, the better they can manage this complexity and ensure a smoother transition.

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Another key best practice is to leverage available technology solutions. The rise of EUDR has spurred the growth of service providers dedicated to helping businesses navigate compliance, like OpenAtlas and Finboot. Businesses should take advantage of these solutions instead of trying to manage compliance on their own. 

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In addition to starting early and using technology, companies should focus on data quality and supplier engagement. Even with advanced traceability platforms, compliance is only as strong as the data input. Suppliers often provide incomplete or inconsistent information, creating significant obstacles in the compliance process. Businesses should proactively work with suppliers to ensure that critical information is accurate and formatted correctly. 

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Conclusion

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The European Deforestation Regulation presents both a challenge and an opportunity for businesses looking to ensure the sustainability of their supply chains. By adopting integrated solutions that combine digital traceability and remote sensing technology, companies can streamline compliance processes, reduce risk, and enhance transparency.

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However, the time to act is now. Delaying compliance efforts could result in rushed implementations, costly inefficiencies, and potential regulatory risks. Whether your business is just beginning its compliance journey or looking to enhance existing processes, we are here to help.

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Get in touch with us to explore how Finboot can support your path to EUDR compliance. 

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