Expert knowledge on supply chain compliance.

The EU Deforestation Regulation (EUDR) requires companies placing relevant commodities and derived products on the EU market to prove their products are deforestation-free — right back to the plot of land where the raw material was grown or harvested. In practice, however, exact one-to-one traceability is often impossible: for bulk commodities like timber, paper pulp, or soy, materials from multiple origins are physically mixed in the course of production and cannot be separated after the fact. The regulation accommodates this reality by requiring operators to report origins "as precisely as possible" and to demonstrate that every input used has a verified, documented origin — not that a specific kilogram of product came from a specific hectare of land. Crucially, this is not a one-time compliance exercise: supply chains change, sourcing regions shift, and risk classifications are updated, making continuous monitoring and regular re-verification of supplier data a core obligation under the regulation.

From 12 August 2026, two overlapping sets of packaging rules take effect simultaneously: the EU-wide Packaging and Packaging Waste Regulation (PPWR) and Germany's new Packaging Implementation Act (VerpackDG), which replaces the existing German Packaging Act (VerpackG). For SMEs, the combination can feel overwhelming. But strip it back and there are really three things you need to get right — and they build on each other in a logical sequence.

The German Supply Chain Due Diligence Act (LkSG) formally applies to companies with 1,000 or more employees in Germany. For the vast majority of SMEs, this means no direct legal obligation. But in practice, this distinction matters far less than most SMEs assume — because the companies that are in scope are some of the most powerful buyers in Germany. Retailers such as Aldi, Lidl, Hornbach, Otto, and Rewe, as well as large manufacturers and brand owners across furniture, automotive, food, and consumer goods, are all subject to the LkSG. Under the act, they are required to conduct risk-based due diligence across their supply chains and document that their suppliers do not expose them to unacceptable human rights or environmental risks. They cannot do this without information from their suppliers. And their suppliers — in many cases — are SMEs.

In December 2024 and December 2025, the European Union amended the Deforestation Regulation (EUDR), introducing simplification measures and postponing the application dates.

The EU Packaging and Packaging Waste Regulation (PPWR) introduces new requirements for how packaging must be designed, documented and placed on the market in future. In practice, compliance depends less on legal interpretation than on a company's ability to collect, structure and verify packaging data from suppliers.

Regulatory pressure and customer requirements are making supply chain transparency an urgent priority for medium-sized businesses.

An overview of EUDR software approaches for transparency and compliance.

Despite the EUDR delay, SMEs must act now to avoid falling behind on supply chain transparency.

A practical example of EUDR compliance by a medium-sized paper manufacturer.

A comparison of EU countries in implementing requirements for deforestation-free products.

Learn how the EU Deforestation Regulation affects small and medium-sized manufacturers in timber, paper and furniture supply chains.

The latest developments in the Lacey Act and their implications for international timber trade.

A compact overview of the key requirements and deadlines of the EU Deforestation Regulation.

India is one of the largest exporters of wooden furniture to the EU. Learn how the EU Deforestation Regulation affects furniture imports and what steps SMEs need to take for compliance.

The impact of the EUDR on imports of timber, paper and agricultural products from the USA into the EU.