EUDR: Do European Regulators Have It All Wrong?

The European Union Deforestation Regulation (EUDR) has been delayed again – this time just three months before its planned implementation in December 2025. This marks the second year-long postponement for the landmark law that aims to prevent products linked to deforestation and forest degradation from entering the EU. The official reason? The central IT systems meant to handle the regulation’s massive data requirements are not ready.

Businesses, however, are far from celebrating the delay. A coalition of major firms – including Ferrero, Mars, Nestlé and Tony’s Chocolonely – has urged European lawmakers to avoid further postponements, warning that it would have serious environmental consequences. Beyond accelerating deforestation and climate change, a delay would also punish those businesses and supply chain partners that have already invested heavily in compliance, risking stakeholder fatigue and disengagement.

These concerns are not new. As far back as April 2024, over 170 organizations wrote to the EU Commission President calling for swift implementation of the EUDR. In the same year, Global Witness estimated that a two-year delay in the implementation of the EUDR could result in deforestation emissions equivalent to 376 million long-haul flights.

At the same time, new research suggests that businesses across Europe support robust sustainability frameworks. A YouGov survey commissioned by E3G – covering 2,500 businesses of varying sizes across Germany, France, Italy, Poland and Spain – found that most firms value sustainability reporting and support maintaining the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) in their stronger forms.

This sentiment is echoed elsewhere. More than 200 businesses and investors – including ALDI SOUTH Group and H&M – have publicly urged the European Commission not to dilute the EU’s sustainability agenda in the name of simplification.

Evidence from the 2025 Verdantix ESG and sustainability global corporate survey suggests that even amid regulatory uncertainty, firms continue to prioritize sustainability reporting: 71% of organizations consider data management and sustainability reporting as either the top or a high priority for spending over the next two years.

So, is there a broader disconnect between what EU regulators think businesses want and what they actually want?
Why would businesses push for stricter regulations and more demanding reporting requirements? The answer lies in the growing recognition of the business value of sustainability data. Increasingly, businesses understand that robust sustainability reporting is foundational for resilience and proactive risk management. High-quality sustainability data enable firms to identify vulnerabilities, benchmark performance and act before risks materialize. Conversely, overlooking sustainability metrics, particularly within supply chains, translates directly into operational and financial inefficiencies (see Verdantix Strategic Focus: Mitigating ESG And Sustainability Risk In The Supply Chain). Climate-related disruptions – such as the extreme heat and droughts that have hit West Africa’s cocoa and coffee harvests – have driven huge price increases in 2025, underscoring the cost of blind spots in sustainability data and decision-making.

Ultimately, sustainability progress demands collective action. Firms are discovering they can’t do it alone – they need their value chains to move with them. But this requires regulatory consistency, including with the EUDR. When the rules of the game keep shifting, investments begin to look like sunk costs.

Because in the end, it is not just about doing better – it’s about doing better together.