UK Mandates Supply Chain Deforestation Due Diligence: What Businesses Need to Know

What Happened

The UK government has announced plans to introduce mandatory supply chain deforestation due diligence rules, requiring businesses to ensure their supply chains do not contribute to illegal deforestation. The regulations will cover commodities such as soy, palm oil, cocoa, and rubber, aligning with the EU's Deforestation Regulation (EUDR) to minimize administrative duplication. A consultation will be launched later this year, using powers under the UK Environment Act. According to government estimates, UK consumption of these commodities is linked to approximately 29,000 hectares of deforestation annually.

Why It Matters

This move signals a major shift in UK supply chain compliance, bringing mandatory environmental due diligence to businesses that import or use forest-risk commodities. The UK aims to eventually transition to a deforestation-free standard, meaning companies will need to demonstrate that their products are not linked to deforestation anywhere in the world, not just illegal deforestation.

The rules are designed to align closely with the EU Deforestation Regulation (EUDR), which requires companies placing relevant commodities on the EU market to conduct due diligence proving they are deforestation-free and produced legally. By aligning data and traceability standards, the UK hopes to reduce the compliance burden for businesses operating in both markets. However, there are key differences: the EUDR covers a broader list of commodities (including cattle, coffee, and maize) and applies to both legal and illegal deforestation, whereas the UK initial focus is on illegal deforestation with a future transition to deforestation-free.

Furthermore, overlaps with the EU's Corporate Sustainability Due Diligence Directive (CSDDD) are notable. CSDDD requires large companies to identify and address adverse environmental and human rights impacts in their supply chains, including deforestation. Companies covered by both UK deforestation rules and CSDDD will need to integrate due diligence processes across multiple frameworks.

What Organizations Should Do

Compliance teams should start preparing now, even though the consultation is yet to launch. Here are practical steps:

• Map your supply chain: Identify where soy, palm oil, cocoa, and rubber enter your products. Trace back to the country of origin and, where possible, to the production plot.
• Assess risk: Use geospatial data and satellite monitoring to evaluate deforestation risk in sourcing regions. Platforms like AIGovHub SENTINEL can provide real-time geopolitical and supply chain risk monitoring, helping you track deforestation alerts and regulatory changes across jurisdictions.
• Engage suppliers: Require suppliers to provide deforestation-free certifications or evidence of compliance with local laws. Align your data collection with EUDR standards to future-proof for both regimes.
• Implement due diligence systems: Establish procedures for risk assessment, mitigation, and reporting. Ensure your system can handle the eventual transition to a deforestation-free standard.
• Monitor regulatory developments: Participate in the upcoming UK consultation and track EUDR and CSDDD implementation to avoid duplication of effort.

Related Resources

For more on supply chain compliance and risk monitoring, see our supply chain risk management vendor directory. Learn about EUDR compliance and CSDDD requirements.

This content is for informational purposes only and does not constitute legal advice.