Carbmee's blog on corporate climate action, scope 1, 2, 3, Scope 3.1 emission calculation, and ESG reporting.

Explore a curated selection of our resources designed to empower your journey toward sustainable transformation, from insightful blogs and thought-leading webinars to in-depth whitepapers and in-person events.

Expertise to drive sustainable transformation

Knowledge & Insights about carbon footprint managemnt

In today’s fast-paced business landscape, accurate and efficient reporting is essential, particularly in sustainability and carbon management. According to Gartner, companies that implement unified data platforms and enhance their reporting capabilities can see up to a 20% improvement in productivity and decision-making efficiency. 

These organizations are more agile in responding to regulatory changes and market dynamics, allowing them to maintain a competitive edge in a rapidly evolving market.

That is why we have built Carbmee Studio—designed to address the challenges faced by businesses that need more flexibility, speed, and autonomy in their reporting processes. Carbmee Studio allows users to not only access pre-defined reports but also create AI-powered customizations effortlessly, ensuring that their insights are tailored to the specific needs of their organization.

At Carbmee, we pride ourselves on listening closely to our customers. One of the most frequent requests we’ve heard is for more customizable reporting tools. Many businesses find themselves relying heavily on external teams, limiting their ability to act quickly. With Studio, we’ve solved this pain point by giving you full control over how you generate, view, and analyze your data.

Are you, like many of our customers, looking for greater flexibility and faster turnaround times in your sustainability reporting? Studio was built with that exact challenge in mind.

Why Carbmee Studio? Listening to Customer Needs

Custom Reports in Minutes:
Whether you need quick access to a pre-defined report or want to create a completely new AI-powered one, Studio makes it simple. Our intuitive interface allows you to build tailored reports with ease, based on your company’s unique data and structure.

AI-Driven Insights:
 Harness the power of artificial intelligence to create dynamic insights by simply providing prompts.

Tailored to Your Business Needs: Carbmee Studio gives you the flexibility to address specific use cases, whether it's CSRD Reporting, CBAM Cost Forecasts, or EcoDesign Dashboards. Studio ensures that every report is customized to fit your goals.

McKinsey’s research emphasizes that organizations with integrated data sources are better positioned to make informed decisions. 

Carbmee Studio unifies your greenhouse gas (GHG) data with additional inputs like cost analysis, allowing for deeper insights and more strategic decision-making. The transactional data model helps businesses tackle complex issues like carbon accounting, scenario analysis, and supply chain emissions management—all from a single platform.

In today's rapidly evolving business landscape, sustainable decision-making is no longer optional—it's essential. Companies are under increasing pressure from regulators, stakeholders, and consumers to reduce their environmental impact while maintaining profitability. According to a report by the World Economic Forum, companies that integrate sustainability into their decision-making processes outperform their peers in terms of both operational efficiency and long-term value creation.

Carbmee Studio is designed with this in mind. By enabling businesses to seamlessly integrate carbon data with cost and operational insights, Studio ensures that sustainability is not just a checkbox—it’s embedded into every critical decision. Whether you’re evaluating a new product’s lifecycle impact or adjusting your supply chain to minimize emissions, Studio equips you with the data and tools needed to make informed, sustainable choices. With accurate, real-time insights at your fingertips, your company can confidently move toward sustainability goals while enhancing overall business performance.

From procurement to sustainability, R&D, Finance to tax, Carbmee Studio is built to serve various business functions. Whether you need to evaluate your supply chain’s data quality or assess emissions reduction strategies, Studio provides the tools to make data-driven decisions quickly and effectively.

The future of carbon management requires flexibility, speed, and precision. Carbmee Studio not only enhances your reporting capabilities but also allows your business to stay ahead of ever-evolving sustainability requirements. By enabling users to customize reports without the need for external teams, Studio accelerates your path to meeting sustainability goals—on your terms.

Go beyond traditional reporting—rely on our comprehensive solution designed to simplify and optimize the way businesses handle carbon data. If you're ready to gain deeper insights and streamline your sustainability efforts, explore Studio and discover how it can transform your reporting process.

For more information on how Carbmee Studio can enhance your carbon management, schedule a demo with our decarbonization experts.

Discover how Carbmee Studio revolutionizes carbon management with AI-driven insights and customizable reporting. Built in response to customer feedback, Studio empowers businesses to make faster, more sustainable decisions, seamlessly integrating carbon data with operational insights for maximum impact.

Introducing Carbmee Studio: Transforming Carbon Reporting with Customization and AI-Powered Insights

The risks of failing to decarbonize are significant. Not only are businesses exposed to carbon pricing, but a lack of action on carbon emissions could expose them to regulatory penalties and consumer backlash. Research indicates that companies not prepared for carbon-related risks could face losses equivalent to 50% of their EBITDA due to carbon pricing alone. This is particularly concerning for carbon-intensive industries such as manufacturing, where the transition to sustainable practices is both necessary and inevitable.

For CEOs, this shift represents an opportunity to capture a significant share of the market for green goods and services. By decarbonizing their products and operations, companies can position themselves as sustainability leaders. This isn’t just a trend; it's a fundamental shift in how businesses will operate in the future.

Decarbonization presents a significant business opportunity for CEOs. Beyond compliance, it's a strategic move to gain market share in green goods and services, establishing companies as sustainability leaders and ensuring long-term competitiveness. This shift is redefining business operations, creating new markets, and driving innovation.

Decarbonization as a Business Opportunity

Enhanced Brand Reputation and Customer Loyalty: Attract and retain environmentally conscious customers.

Operational Efficiencies and Cost Savings: Reduce emissions while cutting long-term operational costs.

Access to New Markets and Investment: Secure funding, forge partnerships, and capitalize on emerging sustainable product markets.

Reduced Regulatory and Reputational Risks: Adapt to stricter climate regulations and avoid potential fines.

Talent Attraction and Retention: Attract and retain top talent seeking purpose-driven work.

CEOs viewing decarbonization as a strategic enabler, rather than a cost, will build successful enterprises by integrating it into all business facets. The future of business is green, and leadership is crucial now.

Companies embracing decarbonization can expect:

As companies embrace this green transition, they will find that sustainability is not just a trend but a fundamental shift in how business is conducted. By prioritizing eco-friendly practices, organizations can enhance their brand image, making them more appealing to consumers who value corporate responsibility. This shift can lead to increased customer loyalty, as people are more likely to support brands that align with their values.

Moreover, operational efficiencies gained through sustainable practices can lead to significant cost savings. For instance, investing in energy-efficient technologies can lower utility bills, while waste reduction strategies can minimize disposal costs. These savings can be reinvested into the business, fostering innovation and growth.

Accessing new markets becomes easier as well. Companies that prioritize sustainability can tap into a growing demographic of environmentally conscious consumers and investors. This opens doors to partnerships with like-minded organizations and access to funding opportunities aimed at supporting green initiatives.

Additionally, by proactively addressing environmental concerns, businesses can mitigate regulatory risks. As governments worldwide implement stricter climate policies, companies that adapt early will avoid potential fines and penalties, positioning themselves as leaders in compliance and responsibility.

Attracting and retaining talent is another significant advantage of a sustainable approach. Many employees today seek purpose in their work and prefer to align themselves with organizations that prioritize social and environmental impact. By fostering a culture of sustainability, companies can draw in passionate individuals who are committed to making a difference.

In conclusion, CEOs who view decarbonization as a strategic enabler rather than merely a cost will be better equipped to navigate the complexities of the modern business landscape. By integrating sustainability into every aspect of their operations, they will not only contribute to a healthier planet but also build resilient, successful enterprises that thrive in the green economy. The time for action is now, and the leaders who embrace this change will pave the way for a brighter, more sustainable future.

The journey to net-zero isn’t just about avoiding carbon risk. It's about embracing a future where sustainability is the driver of business success. By acting now, CEOs in manufacturing can lead their companies toward not only a greener future but a more profitable one. This is just the beginning of the transformation, and over the coming weeks, we’ll dive deeper into the specific strategic opportunities manufacturing CEOs should seize.

As industries around the world face increasing pressure to adopt sustainable practices, manufacturing companies find themselves at a crossroads. The need to decarbonize operations and products isn’t just a matter of compliance; it’s an opportunity to lead the market and secure long-term financial stability. CEOs of manufacturing companies are in a unique position to shape the future by leading the charge toward net-zero.

The manufacturing sector accounts for roughly 20% of global emissions, making it one of the largest contributors to climate change. However, with the global shift toward decarbonization, manufacturing CEOs have a significant opportunity to not only mitigate risks but also tap into new growth areas. According to recent reports, the decarbonized economy is set to create $12 trillion in annual sales by 2030. This is the opportunity of a generation, and CEOs who act now can position their companies as industry leaders.

The Shift to Net-Zero: Why Manufacturing CEOs Must Lead the Way

The need to decarbonize operations and products isn’t just a matter of compliance; it’s an opportunity to lead the market and secure long-term financial stability. CEOs of manufacturing companies are in a unique position to shape the future by leading the charge toward net-zero.

The CSRD marks a watershed moment for corporate sustainability with far-reaching implications for how companies assess their own climate impact, as well as for the future of sustainability reporting in both Europe and globally. Organizations will need to devote significant time and resources to prepare for implementation of the directive within a short timeframe.

We’ve created a quick guide to help industry enterprises understand the most important points of the CSRD and how they can best prepare for it.

Corporate Sustainability Reporting Directive

The Corporate Sustainability Reporting Directive (CSRD) is an amendment and extension of the current Non Financial Reporting Directive (NFRD), under which large companies, banks and insurance companies with more than 500 employees are required to disclose information on their environmental and social impacts. The European Commission adopted a proposal for a CSRD in April 2021, with the aim of improving the quality of sustainability reporting and increasing transparency on the non-financial performance of companies for external stakeholders.

As the climate crisis has progressed, the EU is increasing its efforts to drive forward its transition to a sustainable economy. The CSRD strengthens the existing rules on non-financial reporting introduced in the Accounting Directive by the 2014 non-financial reporting directive (NFRD). The new regulations under the CSRD will bring important changes regarding scope and reporting requirements.

The scope of companies affected by the regulations will significantly be extended to apply to: 

All large companies, that is companies fulfilling 2 out of the three following criteria:
- Revenues surpassing EUR 40 million per year
- Total assets over EUR 20 million
- More than 250 employees

All companies listed on EU-regulated markets (except listed micro-enterprises)

This nearly quadruples the number of companies required to publish reports on the environmental and social impacts of their operations from 11,700 to about 50,000. 

What are the main differences between the CSRD and the existing NFRD? 

The CSRD will include more comprehensive sustainability reporting requirements and significantly expand the number of EU and non-EU companies subject to the EU sustainability reporting framework. Enterprises will provide detailed environmental and climate change information, but will now also be held accountable for reporting on a wider range of topics such as environmental rights, social rights, human rights, and governance factors.

The CSRD is mandatory for companies that meet in-scope criteria, which include: 

EU companies with over 250 employees and a net turnover of EUR 40 million

Non-EU companies with at least one subsidiary in the EU and a net turnover of more than EUR 150 million

Reporting requirements for the CSRD will be fully phased in before the end of the decade as follows:

reporting in 2025 on the financial year 2024 for companies already subject to the NFRD

reporting in 2026 on the financial year 2025 for large companies that are not currently subject to the NFRD

reporting in 2027 on the financial year 2026 for listed SMEs (except micro undertakings)

reporting in 2029 on the financial year 2028 for third-country undertakings with net turnover above 150 million in the EU if they have at least one subsidiary or branch in the EU exceeding certain thresholds.

To comply with the CSRD, companies will need to prepare a non-financial statement that includes information on their sustainability policies, risks, and results. This statement must be auditable by an independent third-party and be included in the company’s annual financial report.The specific content of the statement will vary depending on the size and sector of the company but could include policies and performance details, such as: 

a brief description of the company’s business model, strategy and sustainability risks and opportunities; 

implementation plans as they relate to the transition to a sustainable economy, measures taken to achieve climate neutrality by 2050 ( in line with the Paris Agreement), and exposure to coal, oil and gas-related activities;

double materiality, i.e. both the sustainability matters that affect the company and the impact of the company on the environment, market, and people; 

greenhouse gas emission reduction targets; 

policies in relation to sustainability (including incentive schemes); 

and the processes the undertaking used for due diligence in relation to sustainability issues, as well as the current and future negative effects of the business' operations and value chain.

What information will need to be disclosed?

Companies will need to compile their ESG disclosure information in accordance with the CSRD with guidance from the European Reporting Sustainability Reporting Standards (ESRS). During the drafting process, the ESRS referenced various ESG reporting frameworks and standards, including CDP, GRI, SASB, and others.

The ESRS will incorporate both universal and industry-specific standards, like many other comparable frameworks. The first set of ESRS reporting standards is expected to be adopted by June 30, 2023, and publication of ESRS sector-specific standards is anticipated by June 30, 2024.

Which reporting standard applies to the CSRD?

While the full extent of sanctions is not known, as penalties are defined at a member state’s discretion, organizations found to be in violation of the CSRD can expect serious administrative sanctions, with possible penalties including significant fines.

In the case of NFRD implementation by member states, fines in Portugal ranged from €50 to €1,500, while in Germany companies are fined up to either €10M, 5% of the annual turnover, or twice the amount of the profits gained/losses avoided because of the breach.

Other consequences of CSRD non-compliance could also include damage to brand reputation, a loss of investor and stakeholder confidence, as well as legal action taken by non-governmental organizations.

Will there be penalties or sanctions for not complying with CSRD?

While some details are in development, it is clear that implementing CSRD it will require significant resources, and most crucial for multi-national enterprises, will overlap in scope and diverge in content from region to region. Regardless of size, companies should prepare for CSRD by:

Ensuring that key stakeholders across your company are familiar with CSRD sustainability disclosure requirements; 

Staying up-to-date on EFRAG announcements and ESRS guidance for CSRD;

Assessing how your company identifies and gathers sustainability-related information;

Setting targets and KPIs with planned periods to evaluate progress and relevance;

Utilizing the right tools to help you quantify and report your relevant sustainability information.

How can your company start preparing for CSRD?

carbmee EIS™ Carbon Management solution can help you to plan for success and prepare for the CSRD. Our platform provides you with everything you need to understand your baseline, set targets for emission reduction, develop transparent benchmarks, and report your progress through:

centralized and automated data collection from your existing ERP system;

industry-specific databases of emission factors that guarantees the highest accuracy;

hotspot-assisted target setting, benchmarking, and gap analysis so you have the best data to create compliant reports;

real-time and impact-oriented insights to help you deliver on targets in good time.

Download our CSRD guide for more information.

To learn more about EIS Carbon Management and what carbmee can do for your company, get in touch with one of our industry experts. 

How carbmee can help your enterprise to report in good time and in compliance?

What is the Corporate Sustainability Reporting Directive? What will it mean for your industry? How can your enterprise prepare for compliant reporting? Check out our quick guide to find out.

Corporate Sustainability Reporting Directive (CSRD):Quick Guide

Corporate Sustainability Reporting Directive (CSRD): A Quick Guide

Driving Decarbonization at Scale – How Heraeus Achieved Carbon Transparency with carbmee EIS™

As part of the EU’s path to hitting net-zero greenhouse gas emissions by 2050, a new Carbon Border Adjustment Mechanism (CBAM — a.k.a carbon border tax) was adopted from July 14th 2021. Here’s how the CBAM impacts industry, and how you can avoid high costs by reducing your supply chain emissions.

Global trading has finally begun to take action against climate change: and the result is the world’s first carbon border tax. The European Union’s new Carbon Border Adjustment Mechanism (CBAM), poised to start in 2023, puts pressure on companies to reduce their greenhouse gas emissions in a way that directly affects their bottom line: with a carbon border tax that will soon impact all levels of scope 3 emissions.

The Carbon Border Adjustment Mechanism (CBAM)

While EU businesses are already required to measure, report, and account for the costs of their own production’s carbon footprint, this will now extend to businesses importing from outside the EU. It is a vital step in tackling global trading emissions.

Border tax is another way of saying import tariff. Specifically, it relates to the amount of carbon dioxide emitted during the production of certain goods imported into the EU.

From January 2023, some impacted importers will have new carbon reporting requirements to which they must comply. From January 2026, carbon import permits will be introduced; their cost linked to the EU’s domestic carbon price (estimated to reach at least €75 by then). If the carbon pricing in the producing country is compatible with the EU’s, the carbon border tax will not apply. As we mentioned before, carbon emissions clock in at a high price. So if you don’t know how much your entire carbon footprint is, it’s time to prepare for the CBAM and do a life cycle assessment (LCA) of your supply chain activities.

Watch our CBAM webinar with expert insights from EY

If your company works with non-EU suppliers who don’t comply with EU climate standards (including carbon price), the carbon border tax is highly likely to affect your business in the near future. However, it will initially apply to certain products, including:

Ultimately, this means that the automotive, construction, and packaging industries will be heavily taxed. Indian steel imports could see a 32% rise, while Chinese ones could see a 17% rise. It could also impact the EU’s reliance on Russian oil, and get businesses looking for cleaner supply sources, with a smaller carbon footprint.

The CBAM is to be gradually implemented, giving businesses enough time to prepare and readjust their emissions. It starts with taxing direct emissions first, and the EU will later discuss whether to include more goods and/or indirect emissions in the CBAM’s second phase, due to start in 2026.

If CEOs are not proactive now, they could end up paying a high-price down the line. For example, could your business be importing a crucial component from the US? Since the US does not yet have a carbon pricing mechanism in place, you could be caught out. Leaders of any organization importing from outside the EU will need to rethink their sourcing decisions with a more holistic view of cost-effectiveness: a greener, cleaner impact item may actually save money in the near future and ensure a minimum is passed on to the customer.

With the carbon border tax, EU importers will have to match the corresponding EU carbon price (i.e. the price paid if the goods had been made in the EU) by buying certificates. They have to buy the CBAM certificates from the EU country they are trading with.

Every year, importers will have to declare the emissions and the goods for the year before, and present the CBAM certificates corresponding to these emissions. The price already paid within a third country will be, of course, deducted. However, if the emission information is not available, default carbon prices will be applied.

With this in mind, we can expect to see new trade agreements and the renegotiation of existing ones to ensure the carbon prices correspond with the EU’s, significantly reducing the carbon border tax.

In fact, many EU companies have already been paying for carbon emissions. The EU’s Emissions Trading System (ETS), initiated in 2005, places caps on emissions for most companies. If they go over their quota, they need to buy emission permits from other businesses.

Carbon-intensive EU manufactures, such as the steel and chemical industries, can sometimes find themselves at a disadvantage against the low prices from manufacturers without the EU green standard (and price).

Here, a carbon border tax could mean a fairer field for EU manufacturers, and international pressure to raise environmental standards in general.

It’s well-known that carbon emissions hide in most businesses’ supply chains. Since Scope 3 emissions are complex to track, many CEOs avoid focusing on the carbon impact they have on their businesses.

However, the most important step that affected businesses can take to prepare for the upcoming carbon border tax is to find out where and how much their emissions are. This is crucial for understanding exactly how the CBAM will affect them — not only in the immediate future (taxing only direct emissions) but also long term (indirect emissions).

carbmee is already empowering some of the world's largest enterprises to take control of their emissions for effective carbon reduction strategies. If you want to learn more about how EIS™ Carbon Management can help your organization start on its decarbonization journey, or even just level up existing initiatives, talk to one of our industry experts today.

What is the Carbon Border Adjustment Mechanism? What will it mean for your industry? Could there be new hidden costs in your supply chain because of it? Check out our quick guide to find out.

Carbon Border Adjustment Mechanism (CBAM): All you need to know

What is the Carbon Border Adjustment Mechanism (CBAM)? What will it mean for your industry in EU? Could there be new hidden costs in your supply chain because of it?

Carbon Border Adjustment Mechanism (CBAM): A Quick Guide

In an era where environmental responsibility is crucial, most companies commit to reduction targets, yet do not know how to actually tackle their Scope 3 emissions. Measuring, reporting, and reducing Scope 3 emissions is both a completely new and highly complex challenge. Supply chain decarbonization is still in its early stages and there is an escalating demand for solutions. 89% of companies are using or currently searching for a Scope 3 digital solution, meaning they want to manage their emissions with software, not with service providers.

carbmee is a recognized vendor of carbon management software with a strong commitment to developing and providing a software solution that will empower companies to get their carbon under management. It is carbmee's vision to drive the sustainable transformation of businesses with environmental intelligence to achieve net-zero by 2050. Therefore, it comes as no surprise that carbmee is incorporating all technological advancements to stay at the forefront of carbon management innovation. Whatever technological possibilities exist, carbmee will incorporate the latest innovations into the software, constantly improving the product and using every tool available to empower companies to achieve net zero. While specifically focusing on improving sustainability, carbmee is among other technological start-ups that aim to revolutionize supply chain management with AI.

carbmee´s cutting-edge software enables businesses to measure, reduce, and report emissions in their supply chain with unparalleled accuracy and efficiency. Through advanced data matching techniques with generative AI, carbmee is able to provide granular emission data for massive amounts of data at speed, ensuring precise tracking and management of carbon footprints.

Tackling Scope 3 emissions with intelligent software solutions

carbmee has integrated Gen AI into its carbon accounting software to revolutionize how businesses manage their emissions. Here’s how carbmee stands out:

Gen AI enables carbmee to match customer data with emission data from comprehensive databases such as Ecoinvent. This process ensures that emission data is highly accurate and specific to each item, providing businesses with detailed insights into their carbon footprint.

A key aspect of carbmee’s approach is to focus on excelling at data matching and modeling processes while relying on strong partners like ecoinvent to provide the best emission data. With this clear objective, carbmee´s software solution outperforms in data matching, delivering highly accurate footprint calculations. Gen AI-driven data matching enables companies to measure, report, and reduce their emissions as efficiently and effectively as possible.

Generative AI can handle vast amounts of data efficiently, making it suitable for big data applications. By using generative AI, big bulks of data can be processed efficiently in carbmee EIS™,  enabling the system to provide granular emission data for all items in the supply chain. It is only with this level of detail and granularity that businesses can meet stringent sustainability targets and regulatory requirements.

GenAI models understand the context around data points, leading to more accurate matches. The precision of generative AI in data matching leads to highly accurate emission reports. This accuracy helps companies make informed decisions about their supply chain operations, ultimately contributing to more effective carbon reduction strategies.

Tracking Scope 3 emissions presents several challenges, including inconsistent data sources, varying emission factors, and a lack of standardized methodologies. carbmee’s generative AI addresses these issues by providing:

Consistent Data Integration: carbmee´s incorporated AI ensures seamless integration of data from multiple sources, maintaining consistency and accuracy.

Standardized Emission Factors: Using comprehensive databases like EcoInvent, carbmee standardizes emission factors across the supply chain.

Real-Time Data Insights: The speed of Gen AI data processing and its processing power to handle massive amounts of data, leads to real-time data insights in carbmee EIS™. It enables companies to make timely decision-making.

Overcoming Challenges in Scope 3 Emissions Tracking

carbmee’s innovative use of generative AI in its carbon management software marks a significant advancement in the fight against climate change. By ensuring accurate, granular emission data, carbmee empowers businesses to take effective action towards reducing their carbon footprints. As the world moves towards stricter environmental regulations and greater sustainability demands, technologies like generative AI will be crucial in achieving these goals. The integration of generative AI into carbon accounting is just the beginning. As AI technology evolves, its applications in sustainability will expand, offering new ways to optimize supply chains and reduce emissions. Exciting AI-powered developments in carbmee EIS™ for analysis, forecasts, and scenario modeling are in the making already - stay tuned.

Leading the sustainability transformation with AI-powered climate tech

The complexity of tracking Scope 3 emissions requires powerful solutions. Gen AI significantly contributes to achieving emission data precision and reliability. Learn how Gen AI fuels data matching in carbmee EIS™.

Gen AI Enhances Scope 3 Emissions Tracking with carbmee EIS™

Discover how carbmee uses Generative AI for precise Scope 3 emissions tracking. Learn about enhanced data matching and accuracy for supply chain decarbonization.

Leveraging Generative AI for Supply Chain Decarbonization with carbmee EIS™

The European Union Deforestation Regulation (EUDR) is a new law aimed at reducing the EU’s role in global deforestation and forest degradation. Coming into force on 30 December 2024, it applies to companies placing specific products on the EU market or exporting them from it.

Seven high-risk commodities fall under the regulation:

It also includes a broad range of derived products, such as chocolate, leather, furniture, books, and packaging materials.

To comply, companies must ensure that their products are:

Deforestation-free, based on land use after 31 December 2020

Legally produced, according to local laws in the country of origin

Accompanied by a Due Diligence Statement (DDS), which must include verifiable geolocation data for the plots where commodities were produced (European Commission)

From 30 December 2025, enforcement begins in full — at which point companies must prove that all relevant products meet these criteria (White & Case).

Deforestation is responsible for about 11% of global greenhouse gas emissions — more than the emissions of all global passenger vehicles combined. Forests are essential carbon sinks, and their destruction severely undermines efforts to limit global warming.

For manufacturers committed to net-zero targets or ESG reporting under frameworks like CSRD, eliminating deforestation from supply chains isn’t optional — it’s essential. EUDR compliance directly supports science-based emissions reduction targets and long-term climate resilience.

The EUDR applies to all companies — large and small — that operate in or trade with the EU and handle regulated commodities. It makes no difference whether you are:

Exporting out of the EU to other markets.

The regulation has significant implications for manufacturing companies in sectors such as:

Food & Beverage (e.g., chocolate, coffee, dairy, meat),

Packaging and Paper (e.g., cartons, print products),

Automotive and Transport (e.g., leather or rubber components),

Chemicals and Consumer Goods (e.g., palm oil-based ingredients in cleaning or cosmetic products).

Whether you're at the top of the supply chain or closer to the consumer, if your products contain any EUDR-listed raw materials, you're in scope.

Sustainability – accountable for environmental performance and ESG reporting

Procurement – responsible for due diligence, supplier engagement, and risk data

Supply Chain – tasked with traceability, logistics, and supplier relationships

Legal & Compliance – ensuring regulatory alignment and handling enforcement risk

Executive Leadership – owning strategy, risk, investor relations, and growth

The EUDR touches virtually every department in companies with global value chains — and is especially relevant in manufacturing industries that rely on agricultural, forest-based, or natural raw materials. According to industry estimates, the regulation impacts trillions of euros in trade across these sectors

The EUDR is legally binding and backed by serious enforcement powers. Non-compliance isn’t just a reputational issue — it’s a direct business risk.

Companies may face fines of up to 4% of their annual EU turnover, as well as product confiscation and permanent exclusion from the EU market (Deloitte). These penalties apply not only to products linked to deforestation, but also to failures in documentation — such as missing or incorrect DDS filings.

Authorities have the power to block shipments at the border. Even a single non-compliant farm plot can result in an entire container or batch being denied entry — a risk made real by findings that 2% of farm plots show signs of deforestation and 1% have legality issues.

For manufacturers with just-in-time supply chains, blocked shipments can lead to factory downtime, missed orders, and broken SLAs. The risk is particularly high in commodity-dependent sectors like cocoa, soy, and palm oil.

While the cost of compliance is manageable, it is not negligible. For large companies, EUDR implementation is expected to cost around 0.1% of revenue and 1.45% of operating profit. For SMEs, this rises to 0.17% of revenue. Early investment in systems and supplier collaboration will reduce long-term costs and risks.

Plot-level geolocation and legality verification cannot be retrofitted overnight. Supply chain mapping, particularly in tier 2–3 regions, requires early and sustained supplier engagement.

Last-minute preparation could lead to shipment blocks, supply shortages, and customer dissatisfaction — particularly for EU-bound production runs and critical components.

Demonstrating compliance early will not only reduce risk, but strengthen supplier relationships and enhance brand equity with environmentally conscious consumers and investors.

1. Conduct a Risk-Based Supply Chain Assessment

Identify which commodities and suppliers are in scope

Map out geographies with known deforestation or legal compliance risks

Begin collecting required documentation and geolocation data

Use technology such as GIS, satellite imaging, or blockchain to track commodity origins

Integrate with procurement and ERP systems for real-time verification

Create cross-functional governance involving Legal, Sustainability, Procurement, and Supply Chain

Appoint EUDR leads to own the transition roadmap and reporting

4 important steps companies must take now

The EUDR is not just a compliance problem — it is a strategic priority that intersects with revenue protection, risk management, and ESG leadership.

With up to 4% of EU turnover at risk and the possibility of exclusion from one of the world’s largest markets, EUDR demands board-level attention.

Institutional investors and regulators now expect companies to demonstrate climate and nature-related risk mitigation — including deforestation.

Failure to adapt now could result in raw material shortages, operational standstills, and long-term competitive disadvantage.

EUDR compliance positions your brand as a responsible, forward-looking leader — a critical asset in stakeholder-driven markets.

The EU Deforestation Regulation (EUDR) is set to reshape global trade and supply chain practices — and it’s approaching fast. For manufacturing companies operating in or trading with the EU, it marks a regulatory shift with significant operational, reputational, and financial implications.

This guide outlines what EUDR is, who’s affected, what’s at stake, and what your organization should be doing right now to prepare.

EUDR – What It Means, Who Is Affected, and Why You Must Act

Scope 3 and Supplier Engagement: From Blind Spots to Insights

Navigating climate and trade policy in times of geopolitical tensions

The Sustainability Intelligence Report 2025: How Industry Leaders Are Making Smarter Choices

The CEO’s Guide to Decarbonisation: Five Key Opportunities to Create Sustainable Value

For decades, procurement and supply chain leaders have calculated landed costs using four familiar dimensions: purchasing price, tariffs, insurance, and shipping. These factors determined the true cost of acquiring goods and materials across borders.

But the world has changed. With rapidly evolving climate regulations, a fifth dimension has emerged—emissions-related costs.

This new cost factor is no longer optional to track. It’s a material risk to your bottom line, your compliance status, and your competitive advantage. Managing carbon proactively—rather than reactively—is now a necessity.

Try the Carbmee Carbon Cost Calculator to estimate how carbon pricing could impact your next procurement decision.

In today’s carbon-conscious economy, emissions-related costs include:

The price of carbon under regulatory schemes (e.g., EU ETS, CBAM)

The 5th Dimension of Landed Costs: Why Carbon Risk Must Be Part of Your Purchasing Strategy

 Learn how the fifth dimension of landed costs—carbon pricing and emissions—impacts procurement. See why supply chain leaders must act proactively and how Carbmee helps mitigate carbon risk while delivering real ROI.