What Is the EUDR and How Will It Affect the Office Furniture Industry?

Deep in precious forests around the world, legal and illegal logging feeds the ‘fast furniture industry’. Now, new EU legislation hopes to prevent global deforestation by imposing tougher buying restrictions on a range of commodities.

In this blog, Klavs Henriksen, IE’s Sustainability and Compliance Manager, explores how the EUDR will likely affect the office furniture industry in the EU and beyond.

What is the EUDR?

The EU Deforestation Regulation (EUDR) is a legal requirement mandating new levels of control around the provenance of materials sourced from forested regions and sold in the EU. 

From 30th December 2024, companies, including those in the furniture industry, must demonstrate that their goods have not contributed to global deforestation. Additionally, they must show that their production processes have complied with all local environmental, land use, labour, and human rights laws.

Why is action in the furniture industry needed

• The furniture industry drives 15% of global deforestation (WWF)

• Deforestation releases 10% of global carbon emissions (Intergovernmental Panel on Climate Change)

• 50% of timber used in furniture comes from illegal logging (Interpol - Illegal Logging)

• 80% of current Amazon deforestation is due to cattle ranching for leather production (Yale School of the Environment, 2019).

How will the EUDR affect the office furniture business in the EU?

The EUDR is going to significantly affect the furniture business across Europe. These new requirements will add extra admin costs and sourcing challenges to those buying certain raw materials and products in the EU.

It’s not just timber!

Every sector is being affected by this rule change, including food producers who use palm oil, soya and lots more raw ingredients sourced from forested areas.

For furniture producers, the regulation affects not only their use of timber, but also commodities like leather, rubber, paper and packaging materials.

There will be a lot of work involved in cataloguing compliance of all these goods in the supply chain.

Will furniture prices rise in the EU as a result of the EUDR?

It seems inevitable that the costs of these extra obligations will be passed on to the consumer. Meanwhile, businesses may find it more difficult to maintain the range and quality of the goods they sell as they strive to prove the provenance of their supplies to the satisfaction of regulators.

What are the requirements of the EUDR?

When you look at the new requirements you can see how the obligations mount up and how this might affect choice and prices, as companies work to prove the ethical production of goods they sell.

EUDR Requirements for importing furniture and materials

The EUDR include challenging requirements for:

Traceability and compliance:

• Ensuring full product traceability to prevent links to deforestation post-31 December 2020.

• Documenting the specific origin of every regulated material imported, including country and region of origin.

Due diligence statements:

• Uploading compliance statements to national authorities via the European Commission’s electronic system.

• Communicating due diligence reference numbers down the supply chain.

Transparency and reporting:

• Reporting compliance efforts regularly.

• Maintaining detailed records of due diligence processes.

Enforcement and penalties

• Preparing for unannounced inspections and addressing non-compliance promptly.

• Penalties including fines up to 4% of EU turnover, product confiscation, and exclusion from public procurement.

Are UK operators selling goods into the EU ready for the EUDR?

Not all of them. I have already seen that some furniture producers exporting their products to the EU are unaware what the new regulation entails.

Many are not ready to provide the kind of detailed paperwork the regulation now insists on. They are going to have to act quickly if their sales into European countries are not going to be affected.

Is the UK subject to the EUDR?

No, the EUDR does not apply to commodities imported into Britain.

Instead, the country has its own act, known as the UK Timber Regulation (UKTR) which imposes due diligence requirements on operators importing timber-based goods to the UK.  

However, before the election a new act called the UKFRC was on the brink of becoming legislation, which is similar to the EUDR. With the change in government, though, the timetable for adoption of the UKFRC is now up in the air.

The EUDR is more far reaching than the UKTR

As discussed above, the EUDR covers a broader range of commodities beyond timber, as well as imposing stricter due diligence and transparency requirements. Plus, it includes stronger enforcement mechanisms and penalties. 

Notably, the EUDR requires detailed geolocation data to trace the origin of commodities, ensuring they are not linked to deforestation, a requirement not mandated by the UKTR.

What UK furniture buyers should bear in mind

• With a more eco-minded government just elected in the UK it may only be a matter of time until the UK regulation begins to mirror the EU’s legislation.

• Buyers should be aware that the UKFRC could still become law in the new parliament, introducing some of the same obligations as the EUDR 

• With the passionate interest in the eco-credentials of the businesses they work for, Gen Z may put pressure on their employers to match these high standards of furniture procurement (regardless of the legislation).

• In the long term it will be easier to apply just one standard to goods sold across all European markets. Harmonisation is often a benefit for operators, traders and government in terms of bureaucracy!  

Buying workplace furniture in the age of the EUDR; advice to UK companies

Choose partners with EUDR expertise

UK companies fitting out their offices in European countries should choose partners with a thorough understanding of the EUDR and a strong grip on their supply chains to ensure full compliance.

Choose dealers with resilient and flexible supply chains in place

Having the right relationships with the right suppliers in place will ensure furniture dealers are able to offer their customer the best value and quality even as their due diligence duties increase

Stay updated on EUDR and UKFRC adoption

Prepare for the adoption of many EUDR requirements in future UK regulations. Your dealer should keep you fully updated about trends in the market.

Anticipate future customer expectations

The standards of traceability embodied in the EUDR are likely to reflect future customer expectations in the UK, regardless of future legislation. Ensure your suppliers are capable of meeting these demands.

Conclusion

Sustainable business practice often comes at a cost. By insisting on these standards in the short term it’s likely consumers in the EU will have to pay more for the choice and quality they have taken for granted in the past. But the trend to regulate products that inflict serious environmental damage and contribute to global warming is set to continue in the future.

Furniture buyers in the UK should look to the EUDR as the potential benchmark for future standards around preventing deforestation. 

Those dealers with the strongest network of ethical, global suppliers at their disposal will be able to offer the most competitive and compliant procurement solutions in the post EUDR world.

Editor's note: A special thanks to Klavs Henriksen for his insightful contribution to this blog post.