TrusTrace said it has launched the Deforestation Compliance Solution ahead of the enforcement of the EU’s deforestation-free products regulation (EUDR), which is expected to take effect in December 2024 or in 2025 if there is a delay
The EUDR aims to prevent deforestation by ensuring that products entering the EU do not contribute to deforestation or environmental degradation.
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By GlobalDataTrusTrace emphasised that to comply, fashion companies must provide full traceability back to the plot of land, ensuring their EU-bound products are free from deforestation-related practices.
This, TrusTrace added, is expected to significantly impact the fashion retail industry, particularly regarding widely used materials like rubber, wood, and leather.
TrusTrace CEO and co-Founder Shameek Ghosh shared the challenges businesses face in navigating EUDR complexities. He noted they are under immense pressure to produce granular traceability data, which makes compliance practices challenging since they need to integrate new processes into existing frameworks.
Ghosh stated: “This is where our new Deforestation Compliance Solution comes into play. It is designed to seamlessly integrate into the existing processes, ensuring that EU-bound products in the brand’s supply chain are compliant with EUDR requirements. The solution is part of the TrusTrace platform, which harmonises data collection and actions for efficiency and proactive compliance, enabling brands to leverage the collected data to adhere to a broader set of regulations.”
The TrusTrace Deforestation Compliance Solution, which was co-designed with leading enterprise brands to validate that it meets industry needs is said to enable shipment-level deforestation compliance with ease.
The solution uses automation to enable users to send hundreds of data collection requests with a single click, perform geospatial deforestation analysis in real-time, and generate pre-formatted due diligence statements for instant submission.
TrusTrace added that the collaboration with OpenAtlas ensures the highest quality satellite imagery and analysis, combining multi-spectral satellite imagery with state-of-the-art AI.
To aid EUDR compliance, TrusTrace is encouraging users of the platform to obtain an FSC Certification and ensure certification of their supply chain all the way back to the forest level: “Material sourced from FSC-certified forests and plantations is largely aligned with EUDR requirements, assuring that strict requirements for sustainable forestry have been met in the country of origin.”
The new solution specifically offers:
- Shipment-level traceability: Brands can map farms and collect EUDR-required traceability data including GPS coordinates and FSC certificates for each EU-bound shipment efficiently, ensuring full traceability of products
- Precise risk assessment: Brands can automatically benchmark country-level risks, conduct detailed risk assessments, and instantly verify compliance with geospatial analysis powered by OpenAtlas satellite images – all at shipment level for precise evaluation
- Real-time risk and compliance monitoring: The solution provides a comprehensive overview of data, insights, and reports for each shipment on an intuitive, easy-to-use risk and compliance dashboard, which enables users to monitor and mitigate risks while maintaining full visibility into compliance status
- Automated DDS generation: Brands can automatically generate due diligence statements in the required format for each shipment, and easily submit them to the European Commission via API integration
- Access to supplier support and policy teams: TrusTrace provides support on the customer and supplier level. Policy and regulation experts keep customers up to date on the latest regulatory developments and dedicated trainers will help suppliers efficiently share their data.
TrusTrace believes that while the EUDR is “top-of-mind” for businesses around the world, the reality is that they are under pressure to comply with a host of regulations.
It said that within deforestation alone, the UK Environment Act and the US Lacey Act are planned to be amended, and multiple laws require supply chain traceability and due diligence.
According to Ghosh, TrusTrace is the perfect solution for brands to rely on to manage risk and compliance across the board.
“TrusTrace’s proprietary data collection framework for risk and compliance enables companies to leverage the data collected across regulations. This means that they have the data foundation in place to easily comply with current and future demands, without the need for multiple individual solutions,” he concluded.
“With our cutting-edge technology solutions and partner network, we are uniquely positioned to help brands achieve full supply chain visibility and meet global compliance standards.”
In September TrusTrace partnered with platform engineering firm Xoriant and environmental data specialist Carbon Trail to enhance product marketing accountability for global fashion brands.
