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EUDR Risk Classifications Unveiled: How to Future-Proof Your Supply Chain Compliance

Editor’s Note: This article features expert commentary from Luca Fischer, our Senior Head of Market-Indonesia, Michael Saputra, our Head Data Collection and Climate, and Andre Mawardhi, our Senior Manager Agriculture and Environment, highlighting on how EUDR country risk classifications are reshaping supply chain strategies—and why traceability solutions and farmer-focused engagement are essential for companies sourcing from standard- and high-risk regions.



Executive Summaries: 

  • The European Commission has classified sourcing countries into three EUDR risk categories: low, standard, and high. Only four—Belarus, North Korea, Myanmar, and Russia—are deemed high-risk. 140 countries, including all EU members, are low-risk, while about 50 countries, such as Indonesia, Malaysia, and Brazil, fall under standard-risk.

  • Due Diligence Requirements: Compliance checks vary—1% for low-risk, 3% for standard-risk, and 9% for high-risk. Higher risk means stricter inspections.

  • For operators sourcing from low-risk countries, due diligence obligations are streamlined—focused mainly on collecting sourcing information, with no need for risk assessments or mitigation.

  • In contrast, sourcing from high and standard-risk countries requires full due diligence, including detailed risk assessment and active risk mitigation measures.

 

On May 22, 2025, the European Commission released a Country Benchmarking Results in the global effort to eliminate deforestation from international supply chains—the long-awaited EUDR Country Benchmarking results. This classification framework under the EU Deforestation Regulation (EUDR), assigns sourcing countries to one of three risk categories: low, standard, or high. Its primary aim is to calibrate the level of due diligence required from companies based on the deforestation risks associated with their sourcing regions.


According to the European Commission, and as reported by FoodNavigator, only four (4) countries—Belarus, North Korea, Myanmar, and Russia—have been categorized as high-risk. In contrast, 140 countries, including all EU member states, have been designated as low-risk. The remaining approximately 50 countries are considered standard-risk, a group that is widely understood to include several key commodity-producing nations such as Indonesia and Malaysia (notably for palm oil), and Brazil (for soy and beef). These designations carry significant operational and strategic implications for businesses navigating the EUDR’s compliance landscape. (FoodNavigator: 2025)


the European Commission released a Country Benchmarking Results in the global effort to eliminate deforestation from international supply chains

Table of Index:

Behind the Risk Ratings: What the EU’s Classification Tells Us

The risk classification system determines the level of compliance checks that EU Member States’ competent authorities will apply to operators sourcing from various countries: 1% for low-risk, 3% for standard-risk, and 9% for high-risk regions (European Commission). 

 

For operators sourcing from low-risk countries, due diligence obligations are streamlined—requiring primarily the collection of relevant sourcing information without mandatory risk assessments or mitigation actions. In contrast, sourcing from standard orhigh-risk countries mandates comprehensive due diligence, encompassing rigorous risk assessments and the implementation of corrective mitigation strategies.

 

The key difference is that shipments from high-risk areas are subject to more frequent inspections, with 9% of operators facing checks by authorities. However, this does not imply an immediate need for major supply chain shifts. A high-risk classification also initiates targeted engagement with the European Commission to collaboratively address the underlying causes of deforestation and forest degradation, the objective to reduce their level of risk. (European Commission). 


Luca Fischer, our Senior Head of Market Indonesia said,

“The newly released EUDR country benchmarking provides important clarity, but its practical impact on implementation may be less significant than expected. Regardless of risk categorization, companies upstream and downstream must continue collecting geolocation data and ensuring traceability. Operators sourcing from low-risk countries might save some work related to risk assessment and mitigation, but they are still required to act if risks — such as deforestation — are identified.

“Since national authorities are expected to conduct fewer checks for low- and standard-risk countries, the likelihood of detecting non-compliant shipments is slightly reduced — which also lowers the probability of enforcement actions or fines,” Fischer added.



Connecting the Dots: How the New Classification Should Influence Your EUDR Strategy

 

For industry players, the release of the country benchmarks is not the finish line—it’s the starting gun. Here’s what smart companies should do next:


  • Reassess Your Sourcing - Map out where your raw materials come from and cross-reference that with the new risk classifications. Identify which suppliers fall under standard or high-risk zones—and prioritize them for deeper engagement.


  • Implement or Upgrade Digital Traceability Systems- The EUDR requires plot-level geolocation data, deforestation risk assessments, and product-level traceability. This isn’t possible with spreadsheets. Invest in robust platforms that provide real-time visibility from farm to export gate.


  • Work With Trusted On-the-Ground Partners - Field agents, local NGOs, and agritech facilitators can help bridge the last mile. From farmer training to data validation and plot mapping, these partnerships are critical in delivering compliant and credible data.


  • Build a Due Diligence Documentation Trail - Regulators are not just looking for good intentions—they want evidence. Ensure your systems can generate the necessary due diligence statements, risk assessments, and mitigation records that are audit-ready.


  • Prepare for Increased Audits If Sourcing from Standard and Higher Risk Countries - With a 3–9% check rate depending on classification, your systems must not only be compliant—they must be defendable. Independent verification and third-party assurance are quickly becoming industry best practices.

 

"With the European Commission’s release of the EUDR country benchmarking list—classifying nations into low, standard, and high-risk categories—exporters from standard- and high-risk countries now face more clearer and definite due diligence obligations to maintain access to EU markets.


At Koltiva, we believe compliance begins at the source—with farmers. Our strategy centers on digitizing supply chains, capturing verified farm-level data, conducting robust risk assessments and mitigation, and equipping companies with the tools to generate credible due diligence statements. This is not just about regulatory compliance—it’s about building transparent, traceable, and trusted supply chains that are resilient and future-ready for global trade.” said Andre Mawardhi, Senior Manager Agriculture and Environment.

At the same time, our Head of Data Collection and Climate, Michael Wijaya added,  

“Even if you are sourcing from low or standard risk countries, it is essential that companies conduct data verification down to the plot level. Only by tracing commodities back to individual farm plots, we can ensure accurate identification of deforestation risks and verify sustainable practices on the ground.

This granular approach to data collection and validation strengthens supply chain transparency and helps operators meet rigorous due diligence requirements. Ultimately, plot-level checks empower companies to proactively manage risks, support farmers with targeted interventions, and build trustworthy, deforestation-free supply chains aligned with EUDR standards," added Michael



Let’s Fix What’s Broken, Together

The EU’s country benchmarking is the long awaited information that reveals where the world must focus its efforts. It also reveals where the burdens of compliance will fall the heaviest.

 

At Koltiva, we remain committed to helping companies navigate this new landscape with confidence. From traceability platforms to field-level support, from due diligence data management to farmer empowerment—we are here to ensure that deforestation-free doesn’t just become a regulation, but a reality.

 

The road ahead may be complex. But with the right tools, the right partners, and the right mindset, it’s a road we can walk together—toward a more transparent, traceable, and sustainable future.

Interested in learning how we’re supporting EUDR compliance from the ground up? Connect with us to explore our traceability and risk mitigation solutions tailored for your sourcing regions.



Resources:

Writer: Gusi Ayu Putri Chandrika Sari, Sustainable Communications Specialist

Subject Matter Experts:

  • Luca Fischer, Senior Head of Market at KOLTIVA

  • Andre Mawardhi, Senior Manager Agriculture & Environment at KOLTIVA

  • Michael Saputra, Head of Data Climate at KOLTIVA



About Luca Fischer:  

Luca Fischer is the Senior Head of Markets – Indonesia at KOLTIVA, a leading agritech company focused on building traceable, inclusive, and climate-smart supply chains. In this role, he leads global business development strategies and oversees sector-specific initiatives, particularly in the rubber industry, collaborating with multinational corporations and public organizations to enhance traceability and inclusivity in supply chains. With over six years of experience in sustainable sourcing and climate-smart agriculture, Fischer holds an M.Sc. in Sustainable Resource Management from the Technical University of Munich, Germany. His expertise positions him as a key figure in advancing deforestation-free supply chains and supporting smallholder farmers through technological innovation and strategic partnerships.  


About Andre Mawardhi:  

Andre Mawardhi is the Senior Manager of Agriculture & Environment at KOLTIVA, where he leads sustainable agriculture strategies and environmental compliance across global supply chains. With over a decade of experience in agri-environmental systems, Andre specializes in integrating climate-smart practices, traceability frameworks, and regenerative farming into multi-stakeholder ecosystems. His work bridges scientific insight with on-the-ground impact, ensuring smallholder inclusion and compliance with emerging regulations like the EU Deforestation Regulation (EUDR). Passionate about transforming food systems from the ground up, Andre plays a key role in shaping data-driven, sustainable sourcing solutions that benefit both producers and the planet. 

 

About Michael Saputra:  

Michael Saputra is the Head of Data Collection and Climate at KOLTIVA, leading initiatives that integrate climate intelligence with robust field data systems across global agricultural supply chains. With expertise in geospatial analysis, environmental monitoring, and digital traceability, Michael ensures that data collected from the ground up—down to the farm plot—supports compliance with sustainability frameworks like the EU Deforestation Regulation (EUDR). His work bridges technology and climate action to empower businesses and smallholders in building resilient, transparent, and deforestation-free supply chains. 

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