European Commission adopts EUDR delegated act with leather exclusion

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on Responsible Investor or enjoy below:

🗞️ Driving the news: The European Commission has adopted a delegated act updating the scope of the EU Deforestation Regulation (EUDR)
• The final text excludes leather products while adding soluble coffee and certain palm oil derivatives to the regulation’s requirements

🔭 The context: The EUDR aims to prevent products linked to deforestation and forest degradation from entering the EU market
• Companies placing covered commodities on the EU market must provide due diligence information demonstrating that their supply chains are deforestation-free and compliant with relevant local laws

🌍 Why it matters for the planet: Expanding traceability requirements for commodities such as coffee and palm oil can help reduce pressure on tropical forests, which are critical carbon sinks and biodiversity hotspots
• However, excluding leather limits the regulation’s potential impact on land-use emissions associated with cattle production, one of the major drivers of global deforestation

⏭️ What’s next: The updated scope will guide companies preparing for EUDR compliance deadlines
• Businesses would need to adapt supply chain monitoring systems, while policymakers continue assessing whether additional products should be included in future revisions

📈 One stat: 2 additional commodity categories were added to the EUDR scope: soluble coffee and palm oil derivatives

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