The FSC (Forest Stewardship Council) seminar on the EU Deforestation Regulation (EUDR) will be held online on October 30. The aim of the seminar is to help Chinese tire and related companies better identify and mitigate potential risks across various stages of the supply chain.
The EUDR stipulates that products linked to deforestation and forest degradation are prohibited from being sold on the EU market. This includes products such as palm oil, timber, rubber, and their derivatives. The certification requirements related to sustainability and traceability under this regulation will have a significant impact on the rubber and tire industry.
Chinese tire companies must strictly comply with the regulation by demonstrating that their supply chains do not contribute to deforestation or forest degradation. They must ensure that their products are deforestation-free and comply with the relevant laws of the producing country. Non-compliance could result in penalties such as fines, product confiscation, and loss of revenue.
This means that tire manufacturers may need to trace the sources of raw materials from natural rubber producers. The cost of raw material supply chains and operating costs will likely increase. Additionally, the entry barriers for Chinese tires into the EU market will be raised.
According to statistics, in 2023, the EU imported a total of 2.1663 million tons of tires, with China being the largest tire supplier to the EU, accounting for 39.38% of the EU's tire imports.
Recently, the European Commission proposed delaying the implementation of the EUDR until the end of 2025. However, regardless of whether the regulation is delayed, tire companies should start preparing as early as possible.
As an active member of the EU Commission's multi-stakeholder platform for the EU Deforestation Regulation, FSC has conducted an in-depth analysis of the EUDR. The organization is also actively collaborating with EU stakeholders to transform the regulatory requirements into actionable standards and develop new technical resources for traceability and due diligence.
Based on this, FSC has launched a comprehensive EUDR solution. Through legal modules, risk assessment frameworks, and due diligence reports, FSC helps companies meet compliance requirements. The automated data compilation system generates and submits due diligence reports and statements, ensuring that tire companies can progress steadily and export smoothly.
The upcoming seminar will delve into the core elements of FSC's risk assessment, explain the specific process for initiating FSC-EUDR certification, and highlight the structure and application of the FSC risk assessment framework, as well as the latest developments in China's National Risk Assessment (CNRA).
The Forest Stewardship Council (FSC) is the world's most rigorous and trusted forest certification system. Increasingly, rubber and tire companies are incorporating ESG (Environmental, Social, and Governance) certification as part of their ESG strategy. For example, Pirelli plans to use only FSC-certified natural rubber in all of its European factories by 2026. This initiative has officially begun and will be gradually rolled out to all its factories to produce more environmentally friendly products.
Industry leader Hainan Rubber achieved FSC Forest Management and Chain of Custody certification last year, marking the first time that FSC-certified natural rubber from China will enter the international supply chain.
In the past three years, the number of rubber companies obtaining FSC certification has grown by 60% annually. Over the past decade, the number of companies holding FSC Chain of Custody certification has increased by over 100 compared to 2013. The number of FSC-certified Chinese companies continues to rise steadily.
