Has the EUDR Guidance sacrificed Labour Rights?

The EUDR is a bold initiative aimed at protecting the world’s forests, preserving biodiversity and tackling climate change. The regulation seeks to drive deforestation-free supply chains. It prohibits certain commodities linked to deforestation or made in violation of the laws in the country of production from being placed on the EU market, or exported from it.

On 13th November, the EC published an official Guidance document for the EUDR as a Commission Notice. It is now available in all EU languages. 

While the Guidance provides valuable support for stakeholders, it raises some ambiguities that need clarification. One of these relates to Labour Rights. 

See the technical analysis here. 

Labour rights: Are they at risk of being lost?

The regulation requires companies to ensure a low risk of non-compliance with a wide range of laws in the countries where their products are produced. These include labour laws developed to protect workers' and farmers’ rights. However, the recent Guidance adds a twist. It suggests that these laws should also align with the regulation’s environmental goals of minimising deforestation and forest degradation, to address climate change and protect biodiversity.

This has led to confusion among stakeholders. How do rules governing child labour or working hours relate to deforestation or environmental protection? Conversations with Preferred by Nature have raised concerns that this ambiguity could cause companies to deprioritise labour rights in their due diligence systems. This will potentially weaken efforts to ensure workers’ rights are protected in forest and agricultural landscapes.

We believe this interpretation misses a crucial point. While the EC Guidance emphasises a connection to environmental objectives, it does not override the legal provisions set out in the EUDR. Labour laws remain critical in their own right and the regulation makes this obligation clear. Companies should be cautious about treating these protections as secondary or less important simply because the link to deforestation isn’t explicit.

Labour rights are essential, not optional. Preferred by Nature believe that conducting due diligence for risks of non-compliance in relation to labour laws is crucial to creating responsible supply chains. 

Farmers and workers often bear the greatest risks from unsustainable practices. Ensuring that labour rights remain relevant will help the EUDR achieve its broader goals of addressing deforestation while promoting labour rights and responsibility across industries.

Striking a balance

The EC Guidance has provided welcome direction for stakeholders as they align with EUDR requirements. Even so, it’s crucial to stay anchored to the regulation’s core principles. 

For businesses, clarity on these points is non-negotiable. Missteps in interpreting their obligations could result in penalties, operational disruptions, or reputational damage. On the other hand, companies that adhere closely to the EUDR’s original framework and implement robust, transparent due diligence systems, stand to minimise risks while promoting ethical and sustainable trade.

Regardless of when the EUDR becomes applicable, collaboration is key. Stakeholders across industries must work collectively to resolve lingering uncertainties and the EC must provide clarification when needed. By maintaining a clear focus on the regulation’s multiple beneficial objectives, the EUDR can deliver on its promise of fostering fairer and more sustainable supply chains.
 

For more information on the EUDR, visit our dedicated webpage.