EUDR will come into force in just a few months and many companies still don’t fully grasp what it means

Just a few months left until EUDR comes into force – and many companies still don’t fully grasp its implications

The EU Deforestation Regulation (EUDR) will come into force at the turn of the year. In Finland, its implications are still widely misunderstood – and this will inevitably affect the competitiveness of Finnish companies in the EU single market.

EUDR is not just a reporting obligation. It is a regulatory framework that requires companies to ensure full supply chain traceability and to prove that their products are not linked to deforestation. The obligation extends across the entire supply chain – including suppliers that sell to wholesalers, retail groups, or exporting companies.

The consequences for non-compliance could be severe

Failing to demonstrate compliance with EUDR’s due diligence requirements can be extremely damaging for business. For example:

• products may be denied access to the EU market
• contracts with wholesalers or major customers may be lost
• administrative penalties could include fines of up to 4% of EU turnover
• companies may also suffer major reputational damage that could take years to repair

German companies are far ahead in EUDR – Finland is lagging behind

In Germany, one of Bluugo’s home markets, companies have been preparing for EUDR systematically for several years. Compliance has been seen not only as a regulatory requirement but also as an opportunity to strengthen supplier and risk management processes – with government support for these investments.

Although Germany is often viewed as a laggard in digitalization, in this case it has been ready for a long time. By contrast, Finland is now significantly behind.

Here, many companies are still relying on Excel spreadsheets or ERP system modifications to deal with the issue. Only now, at the last moment, are the limitations of this approach becoming clear – and in some cases, it may already be too late to fix within the remaining timeframe.

Take the TRACES system (the EU’s official system for monitoring product origins) as an example. EUDR requires companies to exchange data with TRACES, which in turn demands technically robust and continuous data transfers. This is not realistically achievable with manually maintained spreadsheets. On top of that, the regulation requires companies to retain data for five years, making ad-hoc ERP-based solutions inherently insufficient and highly risky shortcuts.

How to still meet EUDR requirements before the deadline

With only a few months left, it’s clear that some companies no longer have the time to build a fully compliant solution on their own. At this stage, the priority should be to ensure that the minimum requirements are met by the deadline – while also setting the foundation for future business development.

Bluugo can help companies manage this transition. We are the only industry-independent provider in Finland offering a turnkey solution for EUDR compliance. The ready-to-run solution package enables companies to still meet EUDR’s requirements by the end of the year. From there, the same system also supports gradual progress toward broader benefits such as supplier management, risk management, and the use of digital product passports. In this way, compliance is not just a cost – it becomes a tool for strengthening competitiveness in the EU market.

If your company needs support with EUDR, fill in your contact info through the button below. Our experts will contact you shortly and provide a summary of what needs to be done to fulfill the minimum requirements by the deadline.