The European Union has adopted the final list of products covered under the EU Deforestation Regulation (EUDR), providing much-needed clarity for businesses preparing to comply with one of the bloc’s most significant sustainability laws. While the final legislation largely reflects earlier drafts, one decision has generated considerable debate: leather has been excluded from the regulation’s scope.
The EU Deforestation Regulation aims to reduce the EU’s contribution to global deforestation by requiring companies to demonstrate that certain commodities placed on, or exported from, the EU market have not been produced on land deforested after 31 December 2020.
What has changed?
The final legislation confirms several products will remain outside the scope of the EUDR, including:
- Leather and finished leather products
- Soybean seeds
- Palm oil-derived products used in human and veterinary medicines
- Palm oil waste used as biofuel feedstock
At the same time, the European Commission has expanded the regulation to include additional products such as soluble coffee, palm oil-based soap and several oleochemicals. These additions will come into force from December 2027.
Why has leather been excluded?
The European Commission argues that including leather while excluding many finished leather products could simply shift manufacturing outside the EU, rather than reducing global deforestation.
However, the decision has attracted criticism. German MEP Delara Burkhardt questioned the rationale, arguing that beef from cattle raised on deforested land would be prohibited from entering the EU market, while leather from the same animal could still be imported.
The debate illustrates the challenge policymakers face in designing legislation that delivers meaningful environmental outcomes while remaining practical for complex global supply chains.
EUDR is approaching – Prepare your business for deforestation compliance now
What does this mean for businesses?
Although some products have been excluded, the direction of travel remains clear. Businesses trading products covered by the EU Deforestation Regulation should continue strengthening their supply chain due diligence processes and improving traceability across their value chains.
To comply with the regulation, organisations must be able to demonstrate that relevant commodities are deforestation-free through robust data collection, including geolocation information, before products are placed on the EU market.
The European Commission has also introduced updates to the EUDR information system, making it easier for smallholder farmers and forestry operators to submit the required information directly, reducing administrative complexity while supporting compliance.
Why this matters
The publication of the final product list removes much of the uncertainty that has surrounded the EU Deforestation Regulation over the past year. For businesses, the focus should now shift from interpreting the legislation to preparing for implementation.
Organisations that invest in supply chain transparency, sustainability governance and reliable environmental data will be better positioned to meet regulatory requirements and respond to growing customer expectations around responsible sourcing.
The bigger picture
The EU Deforestation Regulation represents more than another compliance obligation. It signals a broader shift towards greater transparency and accountability across global supply chains. As sustainability regulations continue to evolve, businesses that embed robust due diligence, strengthen supplier engagement and improve internal sustainability capability will be better equipped to manage risk, maintain market access and build long-term resilience.
While the exclusion of leather may continue to spark political debate, the message for organisations remains unchanged: supply chain sustainability is becoming a business imperative rather than a competitive differentiator. Those that act early will not only be better prepared for regulatory compliance but will also strengthen trust with customers, investors and stakeholders in an increasingly sustainability-conscious marketplace.
Dedicated to harnessing the power of storytelling to raise awareness, demystify, and drive behavioural change, Bronagh works as the Communications & Content Manager at the Institute of Sustainability Studies. Alongside her work with ISS, Bronagh contributes articles to several news media publications on sustainability and mental health.
