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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 issued a proposal for changes to the Deforestation Regulation on 21 October 2025. Metsä Group is prepared to operate in accordance with the EUDR as planned by 30 December 2025. We are currently analyzing the impact of the changes on our operations and on our customers. We will publish more information as soon as the analysis is complete.

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. Operators and traders are 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.

In our operating model, we will provide the EUDR Reference Numbers and related Verification Numbers for our customers.

Metsä Group will make information available to customers to assist with ascertaining that due diligence has been properly carried out when receiving the EUDR reference numbers. 
Metsä Group follows the legislative developments closely and continues its EUDR implementation plan accordingly. 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 builds 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.  High level description of the DD system can be found from links of this webpage.

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:

  • Metsä Group continues to develop IT solutions,  processes and capabilities to implement the regulation. We want to provide our customers with accurate and timely information so that they can also implement and comply with the regulation.
  • The implementation of Metsä Group's ICT solution will take place during Q4.
    The EU country risk classification was finalized in May 2025.
  • The European Commission is still expected to specify its guidance documents on EUDR application, and thus national legislation and national authority guidance regarding EUDR implementation is not yet ready. Metsä Group continues to follow developments and adjusts its operation model if needed.
  • Metsä Group meets the requirements of the EUDR by 30 December 2025. A representative of the European Commission stated on 23 September 2025 that it intends to propose a one-year postponement of the implementation of the deforestation regulation, until the end of 2026. Metsä Group’s approach will be refined once further information is received from the EU.

How Metsä Group will deliver and receive EUDR related documents

  • When EUDR data, such as reference numbers, is passed on to customers, existing delivery and billing documents and their delivery methods can be utilised. In addition, it is possible to provide reference numbers by means of a separate automated email. These are sent when customer deliveries leave Metsä Group's ERP system. Shipping methods may vary by business area based on the current ERP solutions and customers' ability to receive information.
  • The e-mail sent by Metsä Group to customers includes:
    • The consignment note or the accompanying document to be used on a business-by-business basis
    • PDF file with EUDR reference numbers and verification numbers
    • A file in CSV format that contains the same information as the PDF file above, making it easier for customers to access, among other things, automated data transfers
  • Metsä Group also has the option to upload CSV files to Metsä Group's DD system from emails sent by suppliers.
  • In Finland, Metsä Forest will utilize ForestHub and Forest Webhub in transferring reference- and verification numbers of wood raw material.

 

EUDR documentation

EUDR documents by Metsä Group

Other related documents