The European Union Regulation on Deforestation-free Products (referred below as ‘EUDR’) (Regulation (EU) 2023/1115) marks a significant milestone in the EU's ongoing efforts to combat deforestation and forest degradation globally. This regulation replaces the EU Timber Regulation, extending the mandatory due diligence requirements to cover a broader range of commodities. 

Under EUDR, it will be prohibited to place or make available relevant commodities, like cattle, cocoa, coffee, oil palm, rubber, soya and wood, or relevant products that contain or have been made using relevant commodities, on the EU market, and export them from the EU unless: 

they are deforestation and forest degradation-free;

they have been produced in accordance with the relevant legislation of the country of production; and

they are covered by a due diligence statement (DDS).

UPM Timber’s Commitment to EUDR Compliance

UPM is in full preparation to ensure the compliance by 30th December 2025. The aim of the regulation is to secure that the use of forests as a raw material is transparent throughout the value chain and that the forest is used in a responsible way. At UPM, we are deeply committed to sustainable forestry practices, and we support the regulation’s overall targets.  
 
EUDR also imposes requirements on businesses, such as due diligence and risk assessments as well as ensuring the information flow in the value chain. To align with the EUDR, UPM Timber has a dedicated project team for a comprehensive assessment of our operations from sourcing to the customer end to meet all regulatory requirements and to ensure that the required data is available to our customers within the required timeframes subject to the delivery of the final instructions by the EU Commission. 

 
 

EUDR implementation at UPM Timber

The chart below describes the basics of EUDR implementation in UPM Timber. The supplier of wood or other relevant commodities provides the first Due Diligence Statement (later DDS) including geolocation information to Traces and gets associated reference numbers (REF) from the system. UPM Timber includes all relevant reference numbers contributing to the raw materials received in their own DDS. After delivering the DDS, UPM Timber receives a reference number and forwards it to customers when placing products on the market. 

  • EU TRACES = EU information system, where operator or non-SME trader need to provide a due diligence statement (DDS) and where corresponding REF numbers are produced
  • REF = reference number and verification number. EU TRACES system will produce a corresponding reference number that will be shared further down the supply chain.  
 

The process also involves verifying due diligence statements from suppliers and verifying suppliers have adequate due diligence systems in place, ensuring traceability and compliance across the supply chain.

 
 

Frequently asked questions on EUDR

Please Note: This Q&A briefing is only meant to provide UPM’s current understanding and interpretation related to the EU Deforestation Regulation. It is not to be considered as legal advice, a binding position statement, nor is it a full representation of the Regulation’s requirements. The reader should seek out guidance from the EU directly or from a third-party expert when determining the full impact of the regulation on their own business activities.

 
 

Please seek out for guidance from the EU directly or from a third party when determining the full impact of the regulation to your business activities.