A coalition of major consumer goods companies, including Nestlé, Mars, Ferrero, and Olam Agri, has warned that a proposed delay to the European Union’s new anti-deforestation supply chain regulation could seriously undermine efforts to protect global forests and create uncertainty for business operations.

Originally scheduled to take effect on December 30, 2025, the EU Deforestation Regulation (EUDR) requires importers of commodities like palm oil, soy, beef, cocoa, coffee, rubber, and timber to prove their supply chains did not contribute to deforestation. The EU is now considering postponing the law by another year, citing concerns that its information‑technology systems are not yet ready to handle the large data volumes the regulation demands.

In response, the coalition urged the EU to maintain the original timeline and instead implement transitional “grace periods” or temporary exemptions in case technical difficulties emerge. They argued that shortening or delaying enforcement would erode consumer trust, weaken investor confidence, and benefit non‑compliant players who might gain a competitive advantage.

These companies say they have already invested heavily in compliance infrastructure, such as traceability systems and due diligence frameworks, and are prepared to meet the December 2025 deadline. To open up the regulation for renegotiation at this stage, they warn, would jeopardize the significant effort and capital already deployed across global supply chains.

The proposed delay has drawn criticism from both industry and conservation groups. Some governments and trade partners have lobbied for more time, claiming that many exporting nations lack the systems to comply immediately. But environmental advocates argue that even a one-year postponement risks accelerating deforestation, particularly in vulnerable tropical regions.

If the delay is formalized, the enforcement schedule would likely shift: large companies would face compliance requirements starting in December 2025, while smaller enterprises might be allowed until mid-2026 to meet the law. Meanwhile, the controversy highlights the tension between ambitious environmental regulation and the practical challenges of implementation, especially for cross-border supply chains.

Source:

https://www.esgtoday.com/nestle-mars-other-companies-warn-against-proposed-delay-to-eus-supply-chain-deforestation-law/