Grappling with the EU’s New Regulation on Deforestation

June 26, 2024

Monica Gassmann, SAP’s Global Head of Sustainability for Industries shares her thoughts on the EU's new regulation on deforestation.

“About 9 million hectares of forest are lost to new agricultural use every year —an expanse the size of Portugal. The benefits of agricultural commodities such as soy, cattle, palm oil, wood, cocoa, coffee, and rubber are easy to calculate through sales figures along various supply chains. The costs of deforestation—biodiversity and ecosystem-services losses, water-cycle disruption, erosion and desertification, the displacement of indigenous communities, and the contributions to climate change among them — are harder to quantify. But they are exceedingly high.

The European Union’s Regulation on Deforestation-free products, a.k.a. the EU Deforestation Regulation (EUDR), takes aim at those costs, and supply chain managers are going to bear the brunt of addressing them. While EUDR compliance goes beyond technology, technology can relieve much of the burden. ”

Read more from the artcle here.

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