Master Sustainability ESG Platform

EU Timber Regulation (EUTR)

Explore the EUTR's and EUDR's role in combating illegal logging and deforestation, and what this means for you.

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The European Union Timber Regulation (EUTR) came into effect in March 2013. It focuses on legality. That means any timber product placed on the EU market, whether imported or harvested within the EU, must be proven to come from legal sources.

Under the EUTR, operators (who place timber on the EU market for the first time) must conduct due diligence to prove legality, while traders (who buy or sell already-placed timber) only need to keep records of their suppliers and customers.

Traders further down the supply chain are no exception. While they don’t have to carry out due diligence themselves, they must store and share records of who they bought from and who they sold to. This allows for better traceability across the market.

Within the image 1.0 we have stated the obligations for operators and traders within the supply chain.

To ensure EUTR compliance, a company must apply a due diligence system: gather information on timber origin, assess and mitigate risks of illegal harvesting, and keep records. Traders must additionally maintain a clear chain of custody by recording suppliers and customers.

Some items are excluded from the EUTR, including recycled wood, printed materials, seating furniture, wooden toys, and musical instruments. Regardless of their material these are out of scope for due dilligence.

What do you need to do?

Companies subject to the EUTR must gather information, assess risks, and take measures to mitigate them. Steps that can become complex and financially demanding depending on the supply chain. This is why it is advised to set up an efficient due dilligence system that entails your supply chain and is future proof.

The due dilligence system

Data collection
Companies must gather detailed information on timber products, including species, country of harvest, quantity, supplier, and compliance documents.
Master Sustainability’s software centralizes this data, automates supplier input, and validates documents, reducing manual work and errors.
Risk assessment
Businesses must evaluate the risk that the timber originates from illegal sources, considering factors such as country of origin, complexity of supply chain, and corruption indices.
The software provides built-in risk scoring, uses external datasets, and highlights high-risk suppliers automatically.
Risk mitigation
If risks are identified, companies must take steps to minimize them—for example by requiring additional documentation, supplier audits, or independent certification.
Master Sustainability’s platform streamlines follow-up actions, tracks supplier improvements, and documents mitigation measures for full compliance reporting.

The EUTR was the EU’s first step in tackling illegal timber trade, but it is now being replaced and expanded by the European Union Deforestation Regulation (EUDR).

While the EUTR focused mainly on legality of timber, the EUDR raises the bar by requiring proof that products are not linked to deforestation or forest degradation, and by demanding geolocation data and stronger traceability across the entire supply chain.

Goal

EUTR = prevents illegal logging (in force per 2013)
EUDR = prevents deforestation (in force per 2026)

Due dilligence scope

EUTR = asks for supply chain supplier/customer records
EUDR = demands geolocation of commodity origins, digital registration, and tracking from source to sale

Learn what an ESG platform can do for you

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Receive support from our team and effortlessly meet your EUTR and EUDR obligations with a digital solution. Now and in the future. Download the brochure for more information or schedule a demo to get in touch with one of our supply chain compliance experts.

This brochure provides insight into the functions and features of our platform.