Forest 500 Report Reveals The Pace At Which Companies Are Beginning To Implement EUDR Compliance – CoffeeTalk

In the past year, several companies have made strides to eliminate deforestation from their supply chains in light of the European Union Deforestation Regulation (EUDR), according to a report by the NGO Global Canopy. The Forest 500 Report 2026 assessed the commitments of 500 major companies regarding deforestation, land conversion, and human rights across nine commodities associated with deforestation that are impacted by the EUDR: beef, cocoa, coffee, leather, palm, pulp and paper, rubber, soy, and timber. More than 25% of the evaluated companies reported new actions toward implementation in 2025, while 14% referenced the EUDR in their deforestation commitments.

Set to take effect on December 30 this year, the EUDR has galvanized responses from various stakeholders in the supply chain, including producers, processors, and retailers in the EU. Chloe Rollscane, a research associate at Global Canopy, noted the regulation’s significant influence, with 68 firms recognizing it in company reports related to deforestation commitments and emphasizing traceability. Despite the regulation not yet being enacted, companies are preparing for compliance.

The report highlighted successful cases, such as Peruvian coffee company Corporación Perhusa, which claimed compliance with EUDR based on official deforestation maps, and Domino’s Pizza, striving to align its European operations with EUDR standards by the end of 2025. A notable increase was reported in traceability for all commodities apart from beef, with 23% of upstream and 14% of downstream entities adopting traceability measures, as mandated by the EUDR to ensure commodities can be traced back to their place of origin in relation to deforestation post-2020.

However, despite these advancements, overall corporate commitments to tackle deforestation remain lacking. Only 29% of companies had widespread commitments, while a mere 120 reported that over half of their volume was deforestation and conversion-free (DCF) for at least one commodity. Companies dealing in rubber, leather, and coffee struggled significantly, with most reporting less than 50% DCF volumes. A small cohort of 19 companies emerged as leaders in effective implementation, counterweighted by 24 persistent laggards who have never made deforestation commitments, risking legal repercussions and reputational damage.

Factors influencing preparedness include prior engagement with deforestation and the adaptability of different national regulatory environments. Countries like Ghana, which have established traceability systems for commodities, report smoother compliance compared to others without such frameworks. Contrarily, Forest 500 identified 14 companies that regressed in their commitments, including Brazilian meatpacker Minerva and U.S. brand Nike, both of whom adjusted their commitments to focus on legal deforestation only, which poses a significant legal risk due to the EUDR’s stricter requirements.

The leather industry also featured prominently in discussions, with some companies showing progress in supply chain tracing; however, there are concerns about lobbying efforts aimed at exempting leather from the EUDR. Nonetheless, consumer demand for sustainable leather is rising, prompting major brands to commit to sourcing deforestation-free products by 2030.

Experts warn that delays and potential amendments to the EUDR could undermine corporate initiatives, complicating due diligence systems. The unpredictability of the regulatory context leads to increased costs for firms as they adapt to shifting legal landscapes. There is an acknowledgment that some companies, such as Nestlé, demonstrate that effective commodity tracing is feasible and does not necessarily harm profitability, indicating a path forward for industry-wide compliance and commitment to sustainability practices in deforestation-related operations.

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