Impact Analysis of EU Deforestation Regulation

This white paper evaluates the impact of the EU Deforestation Regulation (EUDR) on listed Nordic companies. The EUDR aims to mitigate deforestation linked to commodities such as palm oil, soy, cattle, cocoa, coffee, and wood, which are significant contributors to global deforestation and greenhouse gas emissions. The paper outlines that between 1990 and 2020, the world lost approximately 420 million hectares of forest, which is critical for biodiversity and climate regulation. The EUDR imposes strict requirements on companies to ensure their products do not originate from deforested land, presenting both regulatory risks and opportunities for investors. The analysis identifies that at least 144 listed Nordic companies are at risk due to the EUDR, with a potential revenue exposure of €132 billion. It highlights the need for companies to enhance their due diligence and traceability mechanisms to comply with the regulation. The paper underscores the importance of addressing deforestation as part of responsible investment practices.