The European Union's Regulation on Deforestation-free Products (EUDR) marks a significant step in the global effort to combat deforestation and promote sustainable forestry practices. Enacted to ensure that products entering the EU market do not contribute to deforestation, this regulation imposes strict due diligence requirements on companies producing or trading in forest products. It affects the entire forestry sector - regardless of the country of origin.

By mandating traceability and verification of supply chains, the regulation aims to reduce the environmental impact of forestry operations and promote more responsible land-use practices worldwide. This policy not only influences producers and exporters in deforestation-prone regions but also reshapes the economic and operational landscape for forestry businesses globally, emphasising the importance of sustainability in international trade.

Achieving compliance with EUDR is a complex challenge, but CMO, a leading forestry software and services provider, has developed software platforms that streamline these processes, making them more accessible and manageable for businesses.

CMO offers a comprehensive suite of services designed to meet the diverse needs of smallholders, commercial forestry companies, and the broader supply chain, with a strong focus on compliance with the EUDR. CMO tailors solutions to ensure adherence to all major certification requirements, including Forest Stewardship Council (FSC^TM) and Programme for the Endorsement of Forest Certification (PEFC) standards, alongside EUDR compliance.

Empower is a comprehensive sustainability command centre developed to oversee and enhance a business’ compliance efforts. The principal aim was to create tech for smallholders to plan and control their farming practices. To this end, Empower gives the smallholder full control over their tree plot, with a clear picture of the standing volume of the trees planted and thus when best to harvest them.

One of its most notable features is the efficient onboarding of members, which simplifies the integration of new users into the system and ensures that all stakeholders are aligned with sustainability goals from the outset. Additionally, Empower facilitates comprehensive on-site audits, allowing organisations to conduct thorough evaluations of practices and processes to ensure adherence to established standards.

Continuous improvement
The application also includes an Action Log, a vital tool for addressing and closing non-compliances swiftly. This feature helps in identifying areas that require improvement and provides a structured approach to managing corrective actions, thereby fostering continuous improvement. Moreover, Empower’s capability to manage stakeholders both nationally and locally ensures that all stakeholders are engaged and informed, thus promoting a coordinated approach to sustainability.

Empower becomes even more powerful when paired with Tracer, a tool that maps supply chains and monitors volumes and commodity movements in real-time. Together, they promote efficiency and transparency.

Tracer captures detailed product information, supplier data, and coordinates throughout the supply chain, providing a complete overview of the entire production and distribution process. This level of detail is crucial for generating accurate and reliable reports, particularly for the EUDR due diligence statements, ensuring full compliance with the stringent regulatory requirements.

Over the past year, CMO has collaborated with Weber & Schaer (W&S) in Germany, the Sabah Rubber Industry Board (SIRB) in Malaysia, and the Rubber Authority of Thailand (RAOT) to promote sustainability practices and certification within the rubber industry. This partnership leverages CMO's Empower software to enhance sustainable practices and ensure compliance with industry standards.

In Vietnam, CMO has just concluded a successful trial for CMO Tracer in partnership with W&S in June and July 2024. The trial has allowed the first shipment of EUDR-compliant rubber to be sent to the USA. The users appreciated the simplicity of the new application, but also supplied valuable feedback around usability and language optimisation. The application was quickly adopted by the various processing plants that took part in the pilot project.

The CMO team, which has used its extensive knowledge and experience in forestry and certification to develop their software toolbox, are looking forward to scaling their EUDR solution for the benefit of the whole southern African forest industry – particularly where commercial farmers and smallholders are involved in the supply chain.