Sustainability: Sustainable Development - EUDR Ready

Sustainable Development

EUDR Ready

The palm oil industry worldwide is currently facing intensified scrutiny amid rising worries about climate change and the pressing need for sustainable practices. The European Union Deforestation Regulation (EUDR), scheduled to come into effect on December 30, 2025, imposes rigorous compliance requirements for commodities, including palm oil, to ensure that their production does not contribute to deforestation.

Under the EUDR, companies involved with seven key commodities—cattle, cocoa, coffee, palm oil, rubber, soy, and wood—are required to carry out comprehensive due diligence throughout their supply chains. This involves confirming that their products originate from areas not linked to deforestation and providing official due diligence statements.

REA’s Commitment to Compliance

REA recognises that adapting to regulatory changes is an ongoing journey requiring continuous improvement. As part of its proactive approach, REA is aligning its operations and supply chains to meet EUDR requirements.

This includes:

  1. Deforestation-Free Supply Chain
    Ensuring traceability and compliance at every stage.
  2. Due Diligence
    Establishing robust systems to meet Articles 8–13 of the EUDR (Regulation (EU) 2023/1115).
  3. Leadership in Sustainability
    Promoting environmental stewardship and inclusivity across operations and partnerships.
EUDR Readiness

REA has implemented several measures to ensure compliance with EUDR, including:

  1. Engagement of External Experts
    Engaged Control Union Malaysia to conduct a comprehensive 3rd-party readiness assessment.
  2. Focused Assessments
    Review compliance across key operational areas, including one of REA’s three palm oil mills and seven estates.
  3. Development of Robust Systems
    Establishing a due diligence system that addresses deforestation risks and aligns with EUDR mandates.
EUDR Readiness Timeline

2023

    • Internal system review and external verifier engagement.

Q1 2024

    • Comprehensive assessment across key operations.

Q3 2024

    • Final system enhancements & verified EUDR-ready

Q4 2025

    • Full compliance to be achieved.

Assessment by Control Union

REA was among the first companies assessed for their readiness for the EUDR. The assessment by Control Union Malaysia, evaluated REA’s systems against EUDR Articles 8–13, including:

  1. Established Systems
    A robust due diligence system focusing on traceability, land use history, and adherence to supplier standards.
  2. No Gaps Identified
    The assessment confirmed that REA satisfies all necessary regulatory requirements.
  3. Commitment to Excellence
    Management and teams demonstrated a clear commitment to sustainability and compliance with the EUDR.