Deforestation is a pressing challenge with far-reaching consequences. For European businesses, it poses direct risks to supply chains, regulatory compliance, and reputation.

While Europe’s forest cover has grown, its consumption drives global deforestation. The EU’s demand for commodities like palm oil, soy, rubber, and cocoa fuels forest destruction in tropical regions, known as "imported deforestation"¹.

This global impact has spurred regulatory action. The EU Deforestation Regulation (EUDR), effective December 2025 for large companies, requires proof that products are deforestation-free or face fines up to 4% of annual EU turnover. Addressing these risks is critical for businesses.

What is Deforestation?

Deforestation is the permanent removal of forests, which may be attributed to industrial agriculture, over-exploitation of wood resources, climate change impacts, mining and quarrying and urbanization and infrastructure development.

Here are some deforestation facts:

1. Globally, forests once covered about one-third of habitable land².
2. There has been a significant drop to 48% since 1900³.
3. Between 1990 and 2020, 420 million hectares of forest—an area the size of the EU—were lost⁴.
4. While forest cover in Europe has increased in recent years⁵, it is still estimated that roughly 15 billion trees are cut down every year around the world⁶.