Uncovering the EUDR: An exercise in data-driven traceability

The introduction of the EU Deforestation Regulation (EUDR) marks a turning point for retailers and companies sourcing commodities across global supply chains. It’s a seismic shift in how we track, verify, and ultimately, guarantee the sustainability of our supply chains.

Our sustainability expert Alexander Lindeburg reflects on how data-driven traceability is the key to mastering the revolutionary demands from EUDR, and how to navigate the data difficulties and make the challenges of EUDR into opportunity. Not only ensuring compliance but also become leaders in the fight against deforestation, one data point at a time.

NTT DATA Business Solutions | juli 8, 2025 | 4 mintues

A data-driven revolution

The EU Deforestation Regulation (EUDR) has landed, and for retailers and organizations alike, sourcing commodities from the lush landscapes of Brazil to the sprawling industrial hubs of China, it’s not just a policy shift – it’s a data revolution.

We’re talking about a seismic shift in how we track, verify, and ultimately, guarantee the sustainability of our supply chains. Forget spreadsheets; the EUDR demands a data-driven ecosystem, a digital compass guiding us towards a deforestation-free future.

EUDR demands proof

The EUDR’s scope includes six agricultural commodities – cattle, cocoa, coffee, oil palm, rubber, and soya – as well as wood and their respective derived products. EUDR will be applied at import, which means that affected organizations need to take a proactive approach to the requirements as this is not something that can be dealt with after the fact. Documentation needs to be available, in time for the import, and at scale.

Imagine trying to trace a single soybean from a Brazilian farm back to its exact plot of origin. Now, multiply that by the thousands of products on your shelves.

That’s the challenge ‘operators’ and ‘traders’ face. The EUDR isn’t just asking for good intentions; it’s demanding proof, in the form of precise geolocations, production dates, and a meticulous chain of custody.

It starts with mapping your supply chain, creating a comprehensive data flow diagram that highlights every step of the journey.

Alexander Lindeburg

The difficulty of data standardization

Picture the vast Amazon rainforest or the fertile Cerrado – these aren’t neatly mapped industrial parks. We’re talking about expansive agricultural landscapes, often involving smallholders who may lack digital record-keeping. How do you gather precise geolocation data when your supplier’s records are handwritten on scraps of paper? How do you ensure data accessibility when land-use information is scattered across disparate agencies? And how do you navigate the complexities of informal supply chains, where traceability can feel like chasing shadows?

Then, we journey to China, a land of intricate industrial supply chains. Here, the challenge isn’t just about farms; it’s about factories, processing plants, and a labyrinth of intermediaries. Tracing a wooden component back to its forest of origin requires navigating multi-tiered manufacturing processes, each with its own data systems and formats. Data standardization becomes a monumental task, and language barriers can further convolute the process. Add to that the understandable data sensitivity of some suppliers, and you’ve got a recipe for a data headache.

But it’s not just about geography. We’re battling data silos, where critical information is locked away in disparate systems, hindering our ability to get a holistic view. We’re grappling with data quality issues, where inaccuracies and inconsistencies can undermine the compliance efforts e.g. receiving geolocation data for wood that points to the North Sea.

Going from challenge to opportunity

So, how do we navigate this data labyrinth? How do we transform this challenge into an opportunity? It starts with mapping your supply chain, creating a comprehensive data flow diagram that highlights every step of the journey. Next, we need to establish data standards, creating a common language that allows us to seamlessly exchange information with our suppliers.

Technology is our ally. Invest in robust IT systems: geographical information systems (GIS) for location data management, blockchain technology for enhanced traceability, and cloud-based platforms for scalable data storage. Embrace supplier portals to streamline data submission. Leverage data analytics to identify deforestation risks and optimize your supply chain.

But technology alone isn’t enough. We need to build strong relationships with our suppliers, fostering collaboration and transparency. We need to validate and audit our data, ensuring its accuracy and reliability. We need to train and educate our staff and suppliers, empowering them to become data champions. And we must embrace digital solutions that automate data collection and verification, freeing us from the shackles of manual processes.

The EUDR is a call to action, a mandate for data-driven sustainability. It’s a chance to build more resilient, responsible, and transparent supply chains.

Alexander Lindeburg

Embrace the data revolution

The EUDR is a call to action, a mandate for data-driven sustainability. It’s a chance to build more resilient, responsible, and transparent supply chains. By embracing the data revolution, organizations can not only ensure compliance but also become leaders in the fight against deforestation. This isn’t just about avoiding penalties; it’s about building a better future, one data point at a time.

At NTT DATA we specialize in EUDR compliance and have a dedicated team working directly with customers on each of their unique EUDR journeys. Our expertise ranges from regulatory insights to system configuration and ERP adaptations. As there are numerous EUDR solutions to choose from in the market, we have done our best to scour the market for the solutions that best fit our diverse customers. This is why we have partnered with two of the leading software vendors to ensure that we can deliver a holistic end-to-end solution, tailored to your specific challenges, and implemented in your landscape. Our EUDR portfolio includes SAP and their solution SAP Green Token, as well as osapiens, with their solution osapiens HUB for EUDR.

If you are interested in learning more about this topic, then continue here: https://nttdata-solutions.com/dk/blog/mastering-eudr-compliance-with-osapiens-ntt-data/