With the EU Deforestation Regulation (EUDR), the European Union has created an instrument to protect forests worldwide. The classification of country benchmarks determines how stringent due diligence obligations are.
What Is Country Benchmarking Under the EUDR?
The European Commission assesses countries based on their risk of deforestation:
- Low risk:Simplified due diligence allowed
- Standard risk:Full due diligence required (default)
- High risk:Enhanced due diligence and increased inspection rates
How Are Countries Assessed?
The Commission considers: rate of deforestation, expansion of agricultural land, production trends, quality of governance, national forest protection policies, and agreements with the EU.
What Does It Mean for Operators?
Low-risk countries
Simplified due diligence procedures. Reduced burden of proof.
Standard-risk countries
Full due diligence applies. This is the default until the benchmarking list is published.
High-risk countries
Enhanced scrutiny. Higher inspection rates (up to 9% of operators).
What Should Companies Do Now?
- Prepare for standard riskā build processes that meet full due diligence requirements.
- Monitor announcementsā track EU Commission communications.
- Map supply chainsā understand where commodities originate.
- Use geodataā tools like supplycanvas integrate satellite imagery for due diligence.