IOI Data Room: Supporting EUDR Compliance Through Transparency And Accessibility

The global demand for sustainable and ethical sourcing is no longer just a trend, it's a necessity. In response to rising concerns over environmental degradation, the European Union (EU) has introduced the EU Deforestation Regulation (EUDR), a transformative new law that came into force in June 2023, designed to curb deforestation linked to the production and trade of key commodities. This regulation requires companies placing certain commodities on the EU market or exporting them from the EU to ensure that their products are deforestation-free and legally produced.

The EUDR covers key commodities including palm oil, soy, cocoa, coffee, rubber, wood and cattle, along with a range of derivative products. Businesses dealing with these goods must implement a robust due diligence system to trace their supply chains and confirm that no deforestation occurred after 31 December 2020 in connection with the production of these goods.

More than just a trade policy, the EUDR reflects the EU’s commitment to reducing its environmental impact, protecting biodiversity, and upholding human rights. It challenges producers, exporters and companies across the value chain to adopt more transparent and sustainable practices, a move that will have ripple effects across global supply chains.

The regulation specifically targets two main categories of entities: operators (companies or individuals) that import, export or produce goods in the EU and place them on the EU market for the first time, as well as traders, other than the operator, who makes relevant products available on the EU market in the course of commercial activity. Both operators and traders whether based in the EU or not, must ensure full compliance with the EUDR. Failure to do so can result in serious consequences, including hefty fines, seizure of non-compliant goods, and bans on placing products on the EU market.

As the global sustainability regulations continue to evolve, IOI remains steadfast in our commitment to responsible sourcing, traceability and transparency. In line with the EUDR, we have established a dedicated platform, the IOI Data Room in September 2024, to facilitate structured and efficient document sharing with our buyers.

IOI’s sustainability principles and our longstanding commitment to a deforestation-free, transparent supply chain closely aligns with the EUDR requirements, ensuring that products placed on the EU market are not linked to deforestation or forest degradation.

To support our buyers in meeting the EUDR due diligence requirements, the IOI Data Room serves as a centralised platform for sharing relevant compliance-related materials. Designed with both security and usability in mind, it enables authorised personnel to access, view, download and print documents as needed.

This platform operates on a live, updatable basis, allowing IOI to upload new or revised content in real time. Each buyer is provided with tailored access to materials curated specifically to support their unique reporting and compliance needs.

IOI Data Room also incorporates key elements of risk assessment and risk mitigation as part of our due diligence framework. The platform provides essential information such as the country of origin for products, geo-location data for deforestation monitoring, and details from third-party sustainability audits. These help in assessing potential deforestation risks and demonstrate the proactive steps IOI takes to address and mitigate them, ensuring our supply chains meet regulatory requirements, environmental and social responsibilities.

The IOI Data Room exemplifies our broader sustainability mission rooted in transparency, collaboration and accountability. By providing a reliable and organised means of information sharing, we aim to:

• Facilitate efficient due diligence processes for our partners
• Strengthen buyer confidence in our sourcing practices
• Minimise the administrative burden associated with regulatory compliance

As the EUDR framework continues to take shape, IOI will remain responsive to guidance updates and evolving buyer expectations. The IOI Data Room will be continually enhanced to reflect these changes and to ensure that our partners have access to the most current and relevant information.