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EUDR: Deforestation-Free Supply Chains in the EU

The goal of the EU Deforestation Regulation (EUDR) is to ensure that products Europeans buy, use and consume do not cause deforestation or forest degradation globally. At the same time, the goal is to reduce greenhouse gas emissions and the deterioration of biodiversity.

The European Commission has announced a temporary production break of the TRACES system. Therefore Metsä Group is pausing the sending of reference and verification numbers to customers starting 16 February.

The European Commission will announce the reopening date of the TRACES system in mid-April. Metsä Group is closely monitoring the Commission’s guidance related to the EUDR and starts preparing for the future operating model. We will be updating this page and communicating to our customers, once new information is available.

The application of the EUDR starts on 30.12.2026. The Commission will issue updated Guidance and FAQ in the future to support the implementation. Metsä Group will comply with the legislation by 30.12.2026.

Metsä Group's operating model

The EUDR covers commodities such as wood in addition to certain other commodities identified in the Regulation. In the case of wood, the derived products such as pulp, sawn timber, paperboard, tissue paper and several other products are covered.

EUDR requires operators and traders to have a Due Diligence (DD) system in place to ensure that the products comply with the Regulation. The forst operator is required to submit a Due Diligence Statement (DDS) in the EU TRACES system, operated by the European Commission.

The TRACES system assigns reference and verification numbers to the wood and derived products subject to the DD statement. These numbers must be then provided forward in the supply chain.

Metsä Group’s operating model is complient with the EUDR and the currently available versions of the guidance documents provided by the European Commission. Metsä Group continues to follow new versions of the official guidance from the European Commission, the national competent authorities and legislators, and adjusts its operating model if needed. Metsä Group EUDR webpages will be updated on a regular basis.

Links to EUDR related public websites

EUDR documents by Metsä Group

Towards full compliance

Metsä Group is updating its Due Diligence (DD) systems and processes to comply with EUDR requirements. Metsä Group’s EUDR implementation project carries out transition to full compliance.

Metsä Group’s statement and EUDR implementation schedule

Metsä Group has built a cloud-based MetsäTrace solution for the management of reference data required by the EUDR. The solution is linked to Metsä Group’s internal ERP system and to the EU TRACES system used by the authorities.

In addition to the technical system implementation, Metsä Group updates its operating models related to due diligence processes. Metsä Group's updated DD system complies with the requirements of the EUDR as well as the PEFC (PEFC/02-31-03) and FSC® (FSC-C014476) chain of custody requirements.

Metsä Group's DD system ensures that the products procured and placed on the market comply with the obligations of the regulation. Metsä Group DD System includes three areas and required reporting:

  1. Collecting of information: Verification of the wood origin of the product and the production chain.
  2. Risk assessment: Assessment of the risk of compliance with the EUDR requirements.
  3. Risk mitigation: Mitigation of risk before placing product on the market.

For example, Metsä Group Wood and Wood Based Products Compliance Questionnaire and Wood Supplier Compliance Declaration, designed for collecting information and ensuring compliance, will be established into the supplier management tool. Similarly, country risk assessments are updated to comply with the EUDR requirements.

Metsä Group's risk assessments are based on the EUDR country risk classifications (high risk, standard risk, low risk countries), and the risk assessments include also other Metsä Group’s sustainability related requirements such FSC and PEFC chain of custody requirements.

Some of the documentation will be published later once more information is available of the specific requirements of the EUDR.

Key Summary Points on EUDR requirements and related Metsä Group actions:

  • The European Commission, Parliament, and Member States have reached an agreement on amending the Deforestation Regulation. 
  • The start of the application of the Deforestation Regulation will be postponed by one year for all operators and by one and a half years for micro and small operators.
  • There will be significant amendments to the regulation and possible technical changes to EU Traces, which may result in reference numbers not being provided. As a consequence, Metsä Group may need to review the provision of reference numbers to customers.
  • Metsä Group is preparing for the implementation of the revised requirements in 2026, based on EU guidance.
  • The necessary adjustments to Metsä Group’s systems will be carried out following the publication of the final regulation.

How Metsä Group will deliver and receive EUDR related documents

  • Metsä Group monitors the progress of legislation and  instructions given for the transmission of reference numbers.
  • In Finland, Metsä Forest utilizes ForestHub and Forest Webhub in transferring reference numbers of wood raw material.
  • Metsä Group has the option to upload CSV files to Metsä Group's DD system from emails sent by suppliers.

 

EUDR documentation

EUDR documents by Metsä Group

Other related documents