Only 4% of Global Timber Firms Can Trace Their Wood to Forest Origins, KOLTIVA Closes the Gap Toward EUDR-Ready Supply Chains
- Gusi Ayu Putri Chandrika Sari
- 5 days ago
- 12 min read
Updated: 3 days ago
Editor’s note:
This article was developed in close collaboration with KOLTIVA's experts working at the intersection of forestry, geospatial intelligence, and compliance. Drawing on insights from our Senior Agronomy Officer, Rahmad Nanda, and our Remote Sensing and Climate Lead, Dimas Perceka, the piece explores the urgency of timber traceability under the European Union Deforestation Regulation (EUDR). Their perspectives highlight the challenges facing timber companies and how KOLTIVA's tailored solutions,including geospatial integration with WHISP and timber-specific due diligence features—equip businesses to meet compliance requirements with confidence.
Executive Summaries:
Only 18% of the top 100 global tropical forestry companies disclose the countries where their timber is sourced, and just 4% can trace their products to the forest management unit (FMU) level, revealing major gaps in supply chain transparency and accountability (Zoological Society of London, 2025).
An estimated 75% of domestically traded timber is produced illegally (CIFOR, 2020), while Interpol estimates 15–30% of global timber trade originates from illegal logging. These practices drive deforestation, habitat loss, biodiversity decline, and climate change, while undermining governance and local livelihoods.
Timber supply chains span multiple regions and smallholder networks, often relying on fragmented or inconsistent data. This complexity makes it difficult for companies to meet the EU Deforestation Regulation (EUDR) traceability and due diligence requirements.
Leveraging expertise across 64 commodities, KOLTIVA introduces timber-specific solutions such as WHISP geospatial integration, customized forestry surveys, and automated due diligence reporting. Through the Timber Solution Beyond EUDR, KOLTIVA supports companies in achieving NDPE (No Deforestation, No Peat, No Exploitation) commitments and certification schemes like FSC and PEFC, enabling risk mitigation and securing EU market access before the 31 December 2025 deadline.
The vast majority of timber companies sourcing high-risk tropical timbers for wood, pulp, and paper products continue to be not ready to meet transparency requirements. A recent ZSL report reveals that the majority of the world’s leading tropical forestry companies are failing to disclose the origins of their wood and pulp. Only 18% of the top 100 global tropical forestry companies report the countries from which they source their timber (Zoological Society of London, 2025). Even more concerning, just 4% of firms can trace their timber all the way to the forest management unit (FMU) level, exposing significant gaps in supply chain traceability. Without this transparency, companies cannot assure customers or investors that their timber is responsibly sourced—putting forests, markets, and climate targets at risk.
Timber remains a cornerstone of construction, furniture, and paper production worldwide, yet the environmental and social costs of deforestation are under unprecedented scrutiny. According to CIFOR, 75% of domestically traded timber is produced illegally, while Interpol estimates that illegal logging accounts for 15–30% of global timber trade (CIFOR, 2022; Interpol, n.d). These practices drive deforestation, habitat loss, species extinction, and contribute to global warming, while also undermining local communities and governance.
In response, regulators are acting. The European Union, one of the world’s largest timber import markets, now requires timber exporters to prove that wood entering EU markets does not come from deforested or degraded land under the European Union Deforestation Regulation (EUDR). Unlike the earlier European Union Timber Regulation (EUTR) introduced in 2013, which focused primarily on legality, the EUDR, set to take full effect in 2025, goes much further by mandating companies to prove their products are both deforestation-free and not linked to forest degradation, aiming to curb Europe’s contribution to deforestation and promote long-term sustainable forestry practices. By shifting from legality to environmental integrity, the EUDR aims to transform the EU’s global footprint of deforestation, promote sustainable production, and strengthen accountability across industries that depend on forest-based commodities.
For timber exporters, this marks a significant shift: compliance now means providing verifiable, plot-level evidence of sustainable sourcing, down to exact geo-coordinates and harvest dates. Those failing to comply risk losing EU market access, facing penalties, or damaging their reputation.
Table of Contents
Deforestation vs. Degradation: What is the Difference?
Under the EUDR, timber companies must ensure their products are both deforestation-free and degradation-free. While often used interchangeably, deforestation and forest degradation represent distinct environmental issues that require separate monitoring and mitigation approaches. These two have a distinct differentiation and need a different platform to check, verify, and assess.
Deforestation is defined as the conversion of forest to agricultural use, whether human-induced or not (Article 2 (3)).
Forest degradation' means structural changes to forest cover, taking the form of the conversion of:
a) primary forests or naturally regenerating forests into plantation forests or into other wooded land; or
b) primary forests into planted forests. (Article 2 (7)).
Wood products coming from such converted land cannot be placed on the market or exported. Sustainable forest management systems can be employed and encouraged, provided they do not lead to a conversion that meets the degradation definition.
Conversion for other uses, such as urban development or infrastructure, does not fall under the deforestation definition. For instance, wood from a forest area that has been legally harvested to build a road would be compliant with the Regulation.
Specific Compliance Requirements for Timber and Wood Products
According to the European Timber Trade Federation (2024), EU importers must collect and verify the following information in order to fulfil the requirements of the EUDR:
Tree Species
Full scientific names are required (genus + species e.g. Eucalyptus globulus). Genus alone (e.g., Pinus spp.) is insufficient.
European authorities can verify information on tree species by means of laboratory tests (microscopic analysis, genetic analysis)
Country of Harvest
Required to specify the country, and if deforestation or legality risks vary within a country, the region must also be indicated
European authorities can verify information on the country of harvest by means of laboratory tests (genetic analysis, isotope analysis).
Geo-coordinates
Plots <4 hectares require a GPS point; plots ≥4 hectares require polygon mapping.
Coordinates and product quantities must be submitted through the EU’s online portal (EUIS), which automatically checks for inconsistencies (e.g., the same coordinates used across multiple suppliers).
Date/Time range of harvest
The timeframe “duration of the relevant harvesting operations” of harvesting operations must be reported.
European authorities can use satellite imagery to determine whether harvesting took place on the plot land during the specified period.
Legal evidence
Proof that timber was harvested in line with all relevant laws of the country of production (8 legislations mentioned by EUDR).
Timber with a valid FLEGT license is considered legal and hence only fulfils a part of the requirements, but no longer qualifies for automatic “green lane” treatment under the EUDR.
Deforestation-free evidence
Proof that timber did not contribute to deforestation or degradation.
Evidence may include satellite images, land-use records, or other credible documentation.
“In the past, proving timber legality was enough. With the EUDR, companies now need to go much further by showing exactly where their wood comes from, when it was harvested, and proving it is free from both deforestation and degradation. That is a big shift, and many are not ready for it. At KOLTIVA we make that process easier by combining field data with geospatial tools so timber businesses can have clear, reliable proof and the confidence to keep their market access.” said Rahmad Nanda, our Senior Agronomy Officer.
The Global Challenges for Timber Companies
Illegal logging and unsustainable forest exploitation continue to threaten ecosystems, biodiversity, and local communities. According to FAO data, approximately 10 million hectares of forest are lost each year, contributing to greenhouse gas emissions, soil degradation, and disruption of livelihoods for communities dependent on forest resources (EU, 2023).
Fragmented supply chains, reliance on smallholder or remote forest operations, and limited access to real-time data make it difficult for businesses to demonstrate compliance. Failure to comply not only exposes companies to legal and financial penalties but also risks brand reputation in a market increasingly sensitive to sustainability.
While the regulation raises important environmental safeguards, it also creates significant hurdles for companies:
Regulatory Compliance Complexity
Existing documents and data are no longer sufficient, as the EUDR is significantly more complex than previous regulations. Companies must now demonstrate whether timber plots are linked to deforestation or forest degradation, using polygon data verified through geospatial mapping.
Multi-Tier Sourcing & Data Gaps
Timber companies often source from multiple suppliers across different regions and tiers. This makes it difficult to ensure all suppliers meet consistent data standards, and complete first-mile data (e.g., polygons, geospatial information) is often hard to obtain.
Missing or Incomplete Documentation
Critical documents, such as chain-of-custody records, harvest plans, delivery documents and sales receipts, are frequently unavailable or not digitalized, making tracking and verification challenging.
Data Integration & Preliminary Supplier Compliance
Suppliers may have varying compliance statuses. Some already meeting EUDR requirements, others still gathering on-ground data. As a preliminary step, early verification of timber from multiple sources is essential. To ensure progress, companies need a platform that consolidates these diverse datasets and streamlines the EUDR compliance process.
Information Overload & Need for Automation
Managing vast amounts of documents, data, and DDS reports manually is inefficient and increases the risk of sourcing violations. Without a centralized, automated platform, companies struggle to maintain traceability and compliance.
KOLTIVA Approach to EUDR-Ready Timber Supply Chains
For timber companies, achieving EUDR compliance is a complex undertaking. Supply chains often span multiple countries, involve countless smallholder suppliers, and rely on non-standardized data collection systems. Without a robust digital infrastructure, ensuring compliance can quickly become cumbersome, costly, and prone to error.
KOLTIVA has been at the forefront of enabling global supply chains to meet EUDR requirements across 64 commodities such as palm oil, rubber, coffee, and cocoa. Leveraging this cross-commodity expertise, we are now pioneering dedicated solutions tailored for the timber sector, setting a new benchmark for traceability and compliance in one of the world’s most complex industries.
Our EUDR solution is end-to-end: from supply chain mapping at the first mile, through risk assessment and risk mitigation, to the automated submission of Due Diligence Statements to the EU Information System (EUIS). While this process is well established for other commodities, the timber sector requires additional adjustments due to its unique characteristics.
Our end-to-end approach combines data collection, risk assessment to the risk mitigation, supported by advanced geospatial tools and field-proven applications. KOLTIVA's solution enables companies to map suppliers, assess risks, mitigate non-compliance, and automatically generate Due Diligence Statements through the EUIS.
Our features have been specifically tailored to address these needs:
KOLTIVA and WHISP Integration
To strengthen geospatial precision and compliance verification, KOLTIVA has integrated WHISP, a powerful geospatial analysis tool from the FAO’s Open Foris initiative, directly into our traceability platform, KoltiTrace. This integration uses a "convergence of evidence" approach to produce geospatial analysis that provides insight into what various data sets suggest is contained in any given plot of land as of the EUDR cut-off date of December 31, 2020. Each data set is chosen for its relevance to informing land use.
This integration transforms raw data into a verifiable, transparent record that timber businesses can rely on to demonstrate compliance and sustainability.
By weaving WHISP's capabilities into our platform, we empower our clients to:
Turn Compliance Into a Competitive Advantage
With WHISP, we can provide verifiable, data-driven reports that demonstrate your supply chain adheres to strict regulations like the EU Deforestation Regulation (EUDR), turning compliance into a streamlined, automated process.
Effectively Mitigate Risk
WHISP's ability to analyze land disturbances and forest cover helps us identify and flag high-risk plots, allowing you to avoid sourcing from areas with a history of illegal or unsustainable activities, thus protecting your brand's reputation and financial stability.
Build Unprecedented Transparency
The open-source nature of WHISP's methodology means its analysis is transparent and auditable. This builds trust with buyers and stakeholders who can see clear, evidence-based proof of your commitment to sustainable sourcing.
Additionally, KOLTIVA's proprietary Protected Area National Map data complements WHISP’s degradation datasets to enhance timber-specific EUDR risk assessments, providing a more comprehensive understanding of land use and potential compliance risks.
Tailored Survey for Timber
To address the specific needs of forestry operations, we have enhanced our FarmXtension mobile application with a timber-specific questionnaire and decision-tree system that guides field agents through EUDR due diligence requirements. The survey ensures that no critical data point from tree species identification and geolocation to harvest timelines, is overlooked during field assessments.
“By integrating WHISP into our Land Use Tracker, timber companies gain a unique advantage: compliance becomes a streamlined, automated process with verifiable reports; risks are mitigated through early detection of high-risk plots; and transparency is ensured through open, auditable evidence that builds trust with regulators and buyers,” explained Dimas Perceka, our Remote Sensing and Climate Lead.
Timber Solution Beyond EUDR
Beyond EUDR, timber companies must also address a wider set of market and sustainability requirements, ranging from corporate NDPE (No Deforestation, No Peat, No Exploitation) commitments to certification schemes such as FSC and PEFC. KOLTIVA's platform is designed to support these diverse needs, and we bring experience as a certification partner, having accompanied clients through processes such as RSPO certification in the palm oil sector.
Key Solutions to Support End-to-End Traceability for Timber Businesses
To support timber companies throughout their EUDR compliance journey, we offer a full spectrum of services tailored to the industry’s complex needs:
Traceability Solutions
By implementing robust systems to track timber from the forest to the end-user, we leverage digital traceability platforms for real-time monitoring and documentation. From field data collection to export records, every movement of timber is recorded, ensuring transparency and accountability throughout the value chain.
Due Diligence Statement (DDS) Development
We assist clients in designing and implementing customized due diligence frameworks that align with EUDR requirements. The team provides guidance for risk assessment and mitigation, and seamless integration with clients’ existing management systems.
Training and Capacity Building
Recognizing that compliance starts with people, we offer capacity-building programs with training and coaching for smallholders, suppliers, and field staff on EUDR compliance. Workshops cover sustainable forestry practices, accurate documentation, and effective reporting to build internal capacity for long-term compliance.
Certification Support
KOLTIVA guides clients in obtaining and maintaining international certifications such as RSPO and ISPO for palm oil, as well as Rainforest Alliance for other agricultural commodities. In the timber sector, we also support clients in achieving FSC and PEFC certifications. These efforts help producers understand how certification schemes complement EUDR compliance and strengthen their credibility with EU buyers.
Risk Assessment and Management
Through comprehensive assessments, we identify high-risk areas and suppliers, analyzing geographic, social, and environmental data. The platform provides targeted mitigation strategies to proactively address risks, ensuring that no shipment is compromised.
Monitoring and Evaluation
KOLTIVA’s continuous monitoring and evaluation services help clients stay compliant as regulations evolve. Regular performance reviews and adaptive management strategies ensure long-term sustainability and readiness for future policy shifts.
Through these services, KOLTIVA offers not just compliance, but a comprehensive transformation toward traceable, transparent, and responsible timber supply chains.
3 Months Left for Action
By introducing solutions tailored specifically for timber, KOLTIVA equips the forestry industry with the same precision and confidence already proven across EUDR-regulated commodities such as palm oil, rubber, cocoa, and coffee. This positions timber companies not only to achieve compliance but also to build resilience in an increasingly regulated and sustainability-driven market.
With the EUDR entering into force on 31 December 2025, the clock is ticking. KOLTIVA stands ready to guide timber companies through compliance with precision, confidence, and tools designed to meet the sector’s unique challenges. Those who delay risk losing EU market access, facing penalties, and undermining hard-earned reputations.
Talk to our experts today and ensure your timber supply chain is ready before the deadline closes.
Author: Gusi Ayu Putri Chandrika Sari, Social Media Practitioner at KOLTIVA
Subject Matter Expert: Rahmad Nanda, Senior Agronomy Officer & Remote Sensing and Climate Lead, Dimas Perceka
Gusi Ayu Putri Chandrika Sari combines her expertise in digital marketing and social media with a deep commitment to sustainability, supported by over eight years of experience in communications. Her work focuses on crafting impactful narratives that connect technology, agriculture, and environmental responsibility. She is driven by a passion for promoting sustainable practices through compelling, audience-focused content across a variety of digital platforms.
Dimas Perceka is a dedicated GIS Developer with a Master of Engineering, currently contributing to geospatial innovation at KOLTIVA. He brings deep expertise in spatial data management, remote sensing, satellite imagery analysis, and climate change monitoring. Dimas excels in building scalable spatial databases, developing web GIS applications. With a strong foundation in spatial analytics, he supports multi-stakeholder projects focused on sustainable development and digital traceability. Known for his adaptability and collaborative mindset, Dimas thrives in dynamic environments that demand precision, innovation, and impact.
Rahmad Nanda is a Senior Agronomy Officer at KOLTIVA, where he supports the implementation of sustainable agricultural practices and strengthens farmer engagement across KOLTIVA's traceable supply chains. With a strong background in forestry and sustainability certification, he brings valuable experience from previous roles at Preferred by Nature and Rainforest Alliance, and currently also serves as an FSC Auditor with ECOCERT South East Asia & Pacific. His work combines agronomic expertise and field-level insights to enhance compliance, productivity, and environmental stewardship within smallholder farming systems.
Resources:
European Timber Trade Federation. (2024, June 10). The EU Deforestation Regulation (EUDR): Information for suppliers who want to export timber and timber products to the EU (Version 2.1). Confor. https://www.confor.org.uk/media/3777006/ettf-supplier-letter-eudr-eng-v21-10062024.pdf
Interpol. (n.d.). Forestry crime. INTERPOL. Retrieved September 12, 2025, from https://www.interpol.int/Crimes/Environmental-crime/Forestry-crime
Groutel, E., Wale, & Duhesme, C. (2023). EUTR, EUDR we can tell you more! Brochure on EU Timber Regulation vs. EU Deforestation Regulation. ATIBT Certification Commission.
WWF. (2024). Step-by-Step Guide to Conformance to the EU Deforestation Regulation: Timber Annex (v1). WWF International.
European Parliament & Council of the European Union. (2023, May 31). Regulation (EU) 2023/1115 on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No 995/2010 (EU Deforestation Regulation). Official Journal of the European Union. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32023R1115
SPOTT. (2025, September 4). Global timber markets and critical forests threatened by traceability gaps. Zoological Society of London. https://www.spott.org/news/global-timber-markets-and-critical-forests-threatened-by-traceability-gaps/ SPOTT.org
CIFOR. (2020). Collecting evidence of FLEGT-VPA impacts for improved FLEGT communication: Desk review - Cameroon. Center for International Forestry Research. https://www.cifor-icraf.org/publications/pdf_files/Reports/FLEGT-VPA_Cameroon.pdf
Incredible insights! The fact that only 4% of global timber firms can trace their wood to forest origins underscores the urgent need for robust digital traceability. How is Koltiva ensuring smallholder suppliers are also fully integrated into these EUDR-ready systems?