CSRD software – how to find the right reporting tool
The Corporate Sustainability Responsibility Directive presents companies with completely new challenges. Creating a…
he European Union Deforestation Regulation (EUDR) is an EU regulation that strictly regulates trade in deforestation-related products. Its primary goal is to curb global deforestation, actively combat climate change and preserve biodiversity. Companies that import or trade specific raw materials and products into the EU must provide thorough documentation of the sustainability of their supply chains - in other words, they must demonstrate that their supply chains are âdeforestation-freeâ.
The EUDR came into force on June 29, 2023 with the obligation to submit initial reports by December 30, 2024. However, the EU Commission has just announced an extension of the deadline by one year - more information can be found in the following section.
Meeting these requirements calls for structured planning and the implementation of specialized EUDR software. In this article, we provide an overview of the regulation's essentials and guide you in finding and selecting an EUDR software provider that meets your needs.
If you are already well-informed about the EUDR, one click will take you
The EUDR primarily impacts all companies that trade relevant products (see the next section for more details) within the EU or import them into the EU. To date, the following deadlines have applied:
From December 30, 2024: Full compliance with EUDR requirements is expected from large companies.
From June 30, 2025: Small and medium-sized enterprises (SMEs) have until then to adapt to the regulation. SMEs include all companies with fewer than 250 employees and either a maximum annual turnover of 50 million euros or a maximum annual balance sheet total of 43 million euros.
However, on October 2, 2024, the EU Commission announced a one-year postponement for implementing the EUDR: for large companies until December 30, 2025, and for SMEs until June 30, 2026. The EU Parliament and Council must still approve this extension, but no content changes are planned.
Affected companies must take measures by then to carefully verify and document their supply chains and products in strict compliance with EUDR requirements. The EU is serious about enforcement: delays can lead to immediate and serious consequences for market access, including substantial fines (up to 4 % of total revenue) and immediate import bans.
You can find additional details, including helpful example scenarios here: Presentation of the EU Commission on the regulation.
The EU maintains a list of raw materials and products associated with deforestation based on customs numbers (HS codes). The following product categories are affected:
 Wood (Ch. 44, 48, 49, HS Code 9401, 9403, 9406)
Cattle (HS Code 0102, 0201, 0202, 0206 , 1602, 4101, 4104, 4107)Â
Soy (HS Code 1201, 1208, 1507, 2304)Â
Palm oil (HS Code 1207, 1511, 1513, 2306, 2905, 2915, 3823)
Coffee (HS Code 0901)
Cocoa (HS Code 1801-1806)Â
Rubber (HS Code 4001, 4005-4008, 4010-4013, 4015-4017)
Products that contain or are made from these raw materials (such as leather products or chocolate) are also subject to the regulations to the EUDR requirements. This regulation impacts a vast number of companies.
A presentation by the Federal Ministry of Agriculture and Food (BLE) (from September 2023) estimated that between 150,000 to 370,000 market participants could be affected.
Further information from the BLE: see Deforestation-free products (EUDR).
To meet EUDR requirements of the EUDR, companies must take a series of strict measures to ensure that their products do not contribute to deforestation. These measures include:
Due diligence
Companies must prove that their products do not contribute to deforestation.
Traceability
The most precise information on the origin of the raw materials must be provided, including exact data such as GPS coordinates of the cultivated areas.
Risk assessment
Companies must identify, assess and actively mitigate potential deforestation risks in their supply chain.
Reporting
Regular reports must be submitted to the relevant authorities to document ongoing EUDR compliance.
This brief overview makes one thing clear: complex processes await you that must be managed efficiently.
As the above overview suggests, specialized software is almost essential to mastering the complexity of this EU regulation. An EUDR software solution enables you to seamlessly monitor complex supply chains, fulfill your due diligence obligations and ensure that your products are completely deforestation-free.
The requirements are similar to the CSRD, CBAM or other supply chain laws, but the timelines for documentation are shorter, and violations are met with immediate sanctions. Since many companies have overlooked the EUDR law, they must now quickly establish compliance structures and documentation processes â which is where EUDR software becomes invaluable.
The capabilities of an EUDR tool vary significantly depending on the company type. For example, are you primarily an importer, or a trader? Generally, the following core software modules are available from EUDR tool providers:
Traceability and information gathering
The software must document all stages of the supply chain in a fully traceable way. It shows the individual process stages of the goods you import or use in the value chain and which information still needs to be obtained for this.
Coordination of supplier management
One of the most practical and time-saving functions is the administration or management of supplier questionnaires. These are sent directly from the EUDR tool and keep track of the status of each partner in the supply chain.
Geo-Location: Documentation using satellite images
The most comprehensive function of an EUDR software is the provision of geolocation information. Satellite images taken before and after the raw materials are extracted are used to carry out a before-and-after analysis.
Automated risk assessment
All data is collected and analyzed by the EUDR software solution. Algorithms and AI-based functions enable automated review and risk assessment of your supply chain. This involves analyzing whether the assessed products contribute to deforestation, forest degradation or illegal activities.
Legally compliant reporting
The initial EUDR reporting phase requires numerous manual steps to integrate the required information into the reporting software in a structured format. Once this process is complete, the reports are aggregated from multiple sources in accordance with the EUDR requirements.
ESG data management
The software serves as a central hub for ESG data, facilitating import from ERP systems and export for other reporting needs, such as future ESG reporting requirements like CSRD or CSDDD.
The EUDR software optimizes and scales numerous manual data collection processes through a variety of functions. It offers predefined structures that ensure efficient reporting processes and provides targeted recommendations on where improvements can be made along the supply chain in accordance with legal requirements. Though an EUDR report can technically be created âmanually”, the benefits and ROI of a dedicated EUDR tool â given the potential for errors and complexities in compliance â make it a practical investment for most companies.
The costs for EUDR software vary and the main factors influencing these costs include:
Market participants or traders
Market participants (mainly importers) require a larger feature set than companies that are only classified as traders of EUDR-relevant products. Many companies operate as a combination of both, so required modules and features will depend on each case.
Functionality & scope
EUDR software that offers comprehensive functions such as traceability, risk assessment and compliance management usually is designed in a modular way so that the functions described above can be activated individually. Real-time satellite monitoring is a feature that quickly pushes costs up to the upper guideline values.
Integration & adaptation to your tech stack
Usually, a tool requires an interface to your ERP system or to other supply chain solutions that are already in use. These one-time setup costs should be included directly in the providers’ initial offers.
Number of users
License fees are generally based on the number of users within your organization; the more users, the higher the total cost.
Consulting & support
In addition to the license costs, expenses for training, technical support, regular updates and maintenance must also be taken into account.
From our experience conducting over 500 ESG software matchings, we percept the following rough cost estimates:
For smaller companies, the costs for EUDR software are around 10,000 euros to 50,000 euros per year – depending on import quotas and countries.
Medium to large companies must expect costs of between 50,000 euros to 150,000 euros per year for a comprehensive solution with high adaptability.
In addition to the annual license fees, one-time implementation fees and costs for support and consulting services may need to be considered.
Many affected companies are currently looking for a technical solution, want to compare corresponding EUDR software providers and want to hold initial discussions.
The Matchilla team has been continuously screening the rapidly growing market for ESG tools for over two years. Since then, we have maintained all relevant software and tool providers in our database covering aspects such as available modules, functions, languages, interfaces, industry expertise, pricing, and more.
You can now benefit from our unique market overview and our expertise from over 500 ESG software comparisons as part of our matching (for medium-sized companies and corporations) when selecting your own software. We would be happy to support you with our insights from the catalog of criteria, a structured provider comparison and the final provider selection.
This is how the comparison of providers works: You invest a few minutes in filling out the EUDR Match Assistant and we will match the three most suitable software providers for you.
The best thing: This software comparison is anonymous, non-binding and free of charge for you (see FAQ).
Would you like to know which EUDR solution suits your requirements? Simply fill out the following Match Assistant.
Searching for a suitable ESG software application is easy and super fast with Matchilla. Contact was made, specifications were formulated and the results were there after a few days. This way we got information about software that we had never heard of before. A real added value. Thank you, dear Matchilla team.
I was impressed by Matchilla's short and clear processes: our specific needs were immediately understood, perfectly analyzed and matched with the right providers in a short time. Matchilla's platform works quickly, easily and precisely at the same time and offers direct added value when selecting service providers.
The newly formed ESG software market is non-transparent and both the provider research and selection are complex and complicated.
We have already successfully carried out the criteria finding and selection process that lies ahead of you for over 500 companies (medium-sized companies and corporations) and therefore probably have the best-maintained market overview of ESG software providers.
We will replicate the best possible EUDR solution for your situation based on our experience and guide you through the jungle of providers.
Using the Matchilla platform is free of charge, non-binding and anonymized to providers. Our data comparison and the personal service to select the best software for you are made possible through the providers’ platform fees. In general, we do not have a paid contractual relationship with you.
Think of Matchilla as your neutral sparring partner in this selection process. We want your company to use the Matchilla platform in many other service provider searches in the future and for you to recommend us to your colleagues out of your own interest.
Start by filling out the criteria catalog (Match Assistant) for EUDR software. This gives us an initial, very good insight into your requirements. We will then optionally contact you personally to ask about missing specifications. This will sharpen the selection criteria and, in addition to comparing the data, we will add our personal experience to the matching.
Our selection process is based on an efficient interplay of data, algorithms and a good portion of personal expertise. From the aggregated input, we create an individual shortlist (matchboard) on the platform with providers who ideally match your requirements.
If your specifications are detailed and sufficient enough, you can use Matchilla as a tendering platform for procurement and receive direct price offers from suppliers that comply with your compliance regulations. Using the invite function, you can share the offers not only with purchasing, but also with all other decision-makers in your company.
Try it/us out without obligation: We look forward to the matching!
Â
Ulli Theves is Head of ESG Software Matching at Matchilla and an expert in technical solutions in the field of sustainability. In MatchZINE he shares his expertise and regularly publishes current information and interesting facts on the subject of ESG.
The Corporate Sustainability Responsibility Directive presents companies with completely new challenges. Creating a…
Do you want to optimize processes in the field of sustainability and keep…
Carbon Border Adjustment Mechanism: Find out what the new law means for companies…
Match me if you can!