Tradin Organic – Statement on European regulation on deforestation-free product 23/1115 (EUDR)

As the European Union's Regulation 23/1115 (EUDR) on deforestation-free products continues to develop, Tradin Organic is ready to lead in compliance and sustainability. Our commitment to ethical sourcing and environmental integrity is reflected in our comprehensive approach to this regulation.

A proactive and collaborative approach

Tradin Organic has created a task force to ensure EUDR compliance. This international team includes members from the sustainability, quality assurance, trade, logistics, and IT departments. By participating in EUDR working groups and information platforms since the regulation's introduction in 2023, Tradin Organic remains informed about the latest developments and guarantees that processes align with the latest regulatory requirements.

Advanced due diligence system

Currently, there is no globally recognized deforestation-free certification available, so Tradin Organic is developing its own due diligence system, set to be fully operational by Q4 2024. This system collects and analyses data from farms and fields producing at-risk products, as defined in Annex 1 of the EUDR. Key features include:

• Deforestation-Free Sourcing Questionnaire: Suppliers of EUDR-relevant products must complete a digital questionnaire providing geolocations of fields and detailing measures to prevent deforestation and ensure the legality of production.
   
• Capacity Building and Support: Tradin Organic actively engages with suppliers lacking the resources to meet EUDR requirements, offering training and connecting them to publicly funded compliance projects.
   
• Verification and Risk Mitigation: All data is reviewed using third-party verification tools. Tradin Organic has worked with public deforestation tools like Global Forest Watch Pro in the past and is onboarding an accredited commercial solution provider in Q3 2024. In cases of non-compliance, a risk mitigation procedure will be initiated, which may include additional documentation requests or on-site audits.
   
• Commitment to Transparency: Tradin Organic will annually report progress on the verified share of its supply chain, sharing necessary data with clients and government institutions as required.

Ensuring compliance and transparency

Tradin Organic has been diligently addressing this topic since 2023. Our sustainability team leads a dedicated task force focused on the matter. In Q3 2024, we will start collaborating with a top-tier EUDR SaaS company to guarantee the traceability and compliance of our products.

However, per regulations, we must provide DDS codes for relevant products not earlier than December 30th, 2024. While we understand the desire for earlier provision, the technical constraints prevent us from generating DDS codes before December 2nd, 2024, as the relevant IT infrastructure won't be live prior.

All certified products in our portfolio are third-party audited, indicating regulatory compliance. However, not all products are certified, so we do not rely solely on certification for compliance or deforestation status. Additionally to any certification, we will use satellite imagery and drone footage to verify that plantations have not caused deforestation after the cutoff date.

Additionally, we will assess production legality risks through various databases to ensure adherence to local laws.

Future-ready and committed

Our internal due diligence system is scheduled to be operational by early Q4 2024, aligning with the departure of shipments from ports of origin that may reach the EU in early 2025. At that point, we will have the capacity to process all essential data and exclusively import compliant products.

Have any doubts? Or want to know more? Contact us at sustainability@tradinorganic.com.