SAP Green Token in EUDR reporting

The EUDR (EU Deforestation Regulation) is an EU regulation aimed at tackling deforestation and forest degradation resulting from the production and trade of certain raw materials and products. The regulation introduces uniform rules for companies operating in the European Union market and is crucial for sustainable supply chains, ESG, compliance and non-financial reporting.

The purpose of the EUDR is to ensure that products entering or exporting from the EU market:

• They do not contribute to deforestation or forest degradation,
• Are in accordance with the laws of the country of origin,
• Are covered by documented due diligence.

The EUDR addresses seven key raw materials and a wide range of related products:

• soybeans (e.g., oil, feed),
• cattle (and beef products, including beef meat, hide),
• palm oil,
• cocoa (e.g., chocolate, cocoa products),
• coffee,
• rubber (e.g., tires and rubber products)
• wood (e.g., furniture, paper, cardboard).

The scope of the EUDR includes both primary and processed products, which significantly increases the number of regulated companies.

EUDR applies to companies that:

• bring regulated products to the EU market,
• make them available on the EU market,
• they export them outside the European Union.

The obligations extend in particular to manufacturers, importers and exporters, trading and processing companies and organizations operating in international supply chains. What matters is a company’s role in the supply chain, not just its size or industry.

The EUDR introduces due diligence, which consists of several key elements:

• Data collection. Companies must collect and store, among other things, information on the origin of raw materials, geolocation of production plots, data on suppliers and countries of origin, confirmation of compliance with local laws.
• Risk assessment. The company must assess the risk that a product has contributed to deforestation, consider geographic, environmental and legal factors.
• Risk mitigation. If the risk is not negligible, the company should implement corrective actions, change supply sources or suppliers, obtain additional evidence and certifications.
• Reporting and documentation. It is mandatory to submit a due diligence statement to the EU information system, keep records to enable audit and inspection.

Failure to comply with EUDR requirements can result in financial penalties, product recalls, bans on marketing in the EU, reputational risks.

EUDR takes effect:

• as of December 30, 2026. – for medium and large enterprises,
• as of June 30, 2027. – For micro and small businesses.

This means that preparations for EUDR reporting should begin in advance, especially in organizations with complex supply chains. Companies handling logistics processes in SAP systems can consider using the SAP Green Token solution, or use a ready-made application All for One EUDR.

SAP Green Token is a solution offered by SAP that supports the management, tracking and accounting of sustainable raw materials in supply chains. The tool supports regulatory requirements, including EUDR compliance reporting, directly in the SAP ecosystem.

The solution is available in a SaaS model and can be integrated with systems:

• SAP S/4HANA,
• SAP ECC,
• Other ERP systems through open APIs.

Here’s how SAP Green Token supports EUDR compliance.

Management of material streams

• Track the flow of materials throughout the supply chain,
• Assigning sustainability attributes to batches of materials,
• Handling certified, sustainable and conventional materials.

Regulatory compliance

SAP Green Token supports compliance with:

• EUDR,
• ISCC,
• CBAM,
• other sustainability standards.

Audibility and transparency

• Irrefutable, auditable data records,
• Full transparency of the origin of raw materials,
• Ability to prove compliance during inspections.

Reduce risk and increase confidence

• Reducing the risk of regulatory non-compliance,
• Increased confidence of business partners and customers,
• Better management of ESG data and non-financial reporting.

All for One Poland supports enterprises in:

• SAP Green Token implementation,
• Integration of the solution into the existing SAP landscape,
• Preparing the organization to meet EUDR requirements,
• Organizing data and reporting processes.

By combining SAP’s regulatory competence and expertise, companies can effectively prepare for the EUDR and other sustainability-related regulations.

The EUDR Directive introduces a new standard of accountability in supply chains. Regulated companies must not only collect data, but also prove that their products comply with EU environmental requirements.

Solutions such as SAP Green Token, implemented with the support of All for One Poland, enable the automation of EUDR reporting in SAP, integration of compliance with business processes, real support for ESG strategies.