EU Deforestation Regulation (EUDR) is a significant initiative for preventing global deforestation as it ensures that Deforestation-Free Products, which are legally sourced, are marketed in the European Union. Let’s understand how EUDR affects chemical supply chains and the Impact of EU deforestation regulation on cleaning product manufacturers.

How does EUDR affect chemical supply chains?

While the regulation focuses on commodities- palm oil, wood, soy, coffee, cocoa, and rubber- it will also affect the chemical and cleaning product sectors, which rely on the raw materials mentioned, for surfactants, solvents, and other key ingredients. For marketing Chemicals and cleaning products in the European Union, EUDR Compliance must be ensured by Chemical product manufacturers.

Impact of EU deforestation regulation on chemical supply chains

1. Stricter Sourcing and Traceability

  • Companies must prove that raw materials (e.g., palm oil-based surfactants, glycerin, and rubber-derived ingredients) are not linked to deforestation.
  • Compliance with EU Deforestation Regulation can be ensured through sharing the geolocation data of sourcing regions by the suppliers

2. Due Diligence Obligations

EUDR Due Diligence Requirements mandate companies to:

  • Conduct risk assessments for all suppliers.
  • Obtain credible certifications (e.g., RSPO for palm oil).
  • Monitor land use compliance and avoid high-risk sourcing zones.

Non-compliant supply chains may face added scrutiny or be deemed ineligible for the EU market.

3. Supply Chain Disruptions

  • If certain suppliers can’t meet EUDR chemical sector obligations, companies may be forced to switch sources.
  • Reformulating products may be necessary if current ingredients are non-compliant.
  • There could be delays, price fluctuations, or even bans on affected goods.

This highlights the Deforestation Impact on Industries, particularly those with global, complex supply chains.

4. Sustainability & Transparency in Product Claims

Brands that promote eco-friendly and biodegradable ingredients must ensure full transparency:

  • Plant-based ingredients (like palm oil derivatives) must be deforestation-free.
  • Misaligned sustainability claims without proper verification may lead to non-compliance penalties.

Thus, Supply Chain Sustainability becomes both a compliance and branding imperative.

5. Rising Compliance Costs

Meeting EUDR Implementation Guide expectations includes:

  • Conducting audits.
  • Building or upgrading digital traceability systems.
  • Training teams and conducting supplier audits.

While necessary, these steps add to the Chemical Compliance Management Services burden for businesses.

How to Prepare for EUDR Compliance

To minimize disruptions and meet the Deforestation-Free Supply Chain criteria, chemical and cleaning product companies should:

These actions not only support EUDR Risk Assessment for Suppliers but also build long-term supply chain resilience.

Conclusion

The Deforestation Regulation Impact on Chemicals is reshaping how chemical and cleaning product companies operate. To stay compliant, companies must:

At Freyr, we offer expert Chemical Compliance Services to help businesses seamlessly navigate EUDR Compliance for Chemicals. With the right support and systems in place, companies can turn regulation into an opportunity for sustainable growth.

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