1. Information Requirements

The collection of information about the products (description, quantity), country of production, all actors having supplied and/or been supplied with concerned products, but more importantly the precise geolocation of all plots of land, with the date or time range of production. Such information should confirm that there is no link with deforestation as of 31 December 2020.

2. Risk Assessment

The assessment of risks, considering fourteen criteria relating to the situation of the production country, complexity of the supply chain, reliability of information and of course the presence of forests and prevalence of deforestation; but also, to the respect of Indigenous peoples. This legislation thus has a dual dimension: environmental and social, the latter being focused on consultation, cooperation, and the consideration of potential claims regarding the use or ownership of the area.

3. Risk Mitigation

The mitigation of risks, through the adoption of measures before commercialisation, until reaching no or only a negligible risk. These measures can include requesting additional data or documents, carrying out independent surveys or audits, or any other measures pertaining to the information requested in step 

4. Reporting and Communication

The report functions as a transparent record of the steps taken to ensure compliance with regulations.  The outcomes must be uploaded to the European Commision Information System. This process contribute to a more accountable and streamlined regulatory framework.

These due diligence obligations will depend on the level of risk attributed by the Commission to the country/region of production in terms of deforestation or forest degradation. The regulation indeed includes the establishment of a country benchmarking system, categorising countries in three risk levels: high, low or standard, primarily based on the rate of deforestation/forest degradation, of expansion of relevant agriculture lands, and on production trends of relevant commodities and products. A simplified due diligence comprising only the first element (information collection) will then be exercised for products coming from low-risk countries.