ESG-Software: So findest du die richtigen Tools für eure ESG-Prozesse
Was noch vor einigen Jahren nur vereinzelt relevant war, ist nun ein Thema…
he European Union Deforestation Regulation (EUDR) is an EU regulation that strictly regulates trade in deforestation-related products. Its primary goal is to curb global deforestation, actively combat climate change and preserve biodiversity. Companies that import or trade specific raw materials and products into the EU will be required to provide comprehensive evidence of the sustainability of their supply chains - in other words, they must demonstrate that their supply chains are “deforestation-free”.
The EUDR came into force on June 29, 2023 with the obligation to submit initial reports by December 30, 2024. The EU Commission has just announced an extension of the deadline by one year - you can find more information on this in the following section.
To meet the requirements, structured planning and the use of specialized EUDR software are required. In this article we explain the basics of this regulation and support you in finding and selecting a suitable EUDR software provider.
If you are already well informed about the EUDR, one click takes you
The EUDR basically affects all companies that trade relevant products (see the next section for more details) in the EU or import them into the EU. To date, the following deadlines had to be met:
From December 30, 2024: Full implementation of the EUDR requirements by large companies.
From June 30, 2025: Until then, small and medium-sized enterprises (SMEs) have time to adapt to the regulation. SMEs include all companies with fewer than 250 employees and either a maximum annual turnover of 50 million euros or a maximum annual balance sheet total of 43 million euros.
However, on October 2, 2024, the EU Commission announced that the start of the EU Deforestation Regulation (EUDR) would be postponed by one year: For large companies to December 30, 2025, for SMEs to June 30, 2026. The approval of the EU Parliament and Council is still pending, but no changes to the content are planned.
Affected companies must take measures by then to check their supply chains and products strictly in accordance with the requirements of the EUDR and to document them completely. The EU is really serious about this: any delay has immediate, serious consequences for market access, can result in high fines (up to 4 percent of total turnover) and an immediate import ban.
You can find further information with good example scenarios here: Presentation of the EU Commission on the regulation.
The EU maintains a list of raw materials and products associated with deforestation based on customs numbers (HS codes). The following product groups are affected:
Wood (Ch. 44, 48, 49, HS Code 9401, 9403, 9406)
Cattle (HS Code 0102, 0201, 0202, 0206 , 1602, 4101, 4104, 4107)
Soy (HS Code 1201, 1208, 1507, 2304)
Palm oil (HS Code 1207, 1511, 1513, 2306, 2905, 2915, 3823)
Coffee (HS Code 0901)
Kakao (HS Code 1801-1806)
Rubber (HS Code 4001, 4005-4008, 4010-4013, 4015-4017)
Products that contain or are made from these raw materials (such as leather products or chocolate) are also subject to the regulations of the EUDR. And this means that the number of companies affected is immense.
In a presentation by the Federal Ministry of Agriculture and Food (BLE) (from September 2023) to estimate the internal personnel requirements, 150,000 to 370,000 market participants are estimated to be affected.
Further information from the BLE: Deforestation-free products (EUDR).
To meet the requirements of the EUDR, companies must take a series of strict measures to ensure that their products do not encourage deforestation. These measures include:
Due diligence
Companies are obliged to prove that their products do not cause deforestation.
Traceability
The most precise information on the origin of the raw materials must be provided, including exact data such as GPS coordinates of the cultivated areas.
Risk assessment
Companies must identify, assess and actively mitigate potential deforestation risks in their supply chain.
Reporting
Regular reports must be submitted to the relevant authorities to document ongoing compliance with the EUDR.
As you can see from the previous explanations, the use of specialized software is almost essential to mastering the complexity of this EU regulation. An EUDR software solution enables you to seamlessly monitor complex supply chains, fulfill your due diligence obligations and ensure that your products are completely deforestation-free.
The requirements are similar to the CSRD, CBAM or other supply chain laws, but the timing for documentation is much shorter and violations are immediately sanctioned. Since the EUDR law has simply been forgotten by many companies, structures and documentation processes must now be created quickly. And this is exactly why you need an EUDR tool.
It should be noted that the range of functions of an EUDR tool varies greatly depending on the type of company (are you an importer or a trader?). Basically, the following software modules are available from the providers:
Traceability and information gathering
The software must document all stages of the supply chain in a traceable manner. It shows the individual process stages of the goods you import or use in the value chain and which information still needs to be obtained for this.
Coordination of supplier management
One of the most practical and time-saving functions is the administration or management of supplier questionnaires. These are sent directly from the EUDR tool and keep track of the status of each partner in the supply chain.
Geo-Location: Documentation using satellite images
The most comprehensive function of an EUDR software is the provision of geolocation information. Satellite images taken before and after the raw materials are extracted are used to carry out a before-and-after analysis.
Automatized risk assessment
All data is collected and analyzed by the EUDR software solution. Algorithms and AI-based functions enable automated review and risk assessment of your supply chain. This involves analyzing whether the assessed products contribute to deforestation, forest degradation or illegal activities.
Legally compliant reporting
The path to the first EUDR reporting requires numerous manual steps to integrate the required information into the reporting software in a structured manner. Once this process is complete, the reports are aggregated from the various sources in accordance with the EUDR requirements.
ESG data management
The system becomes one of your central hubs for ESG-relevant data. This applies both to data import from existing ERP systems and export for e. g. other (future) ESG reporting (like CSRD or CSDDD).
The EUDR software optimizes and scales numerous manual data collection processes through a variety of functions. It offers predefined structures that ensure efficient reporting processes and provides targeted recommendations on where improvements can be made along the supply chain in accordance with legal requirements. There is of course the option of creating the EUDR report “manually” and also the question of the ROI for using the software arises.
The costs for EUDR software vary and depend largely on these factors:
Market participants or traders
Market participants (mainly importers) require a larger feature set than companies that are only classified as traders of EUDR-relevant products. For some companies, it is usually a mix of both and it is decided on a case-by-case basis which functions/modules are required.
Functionality & scope
EUDR software that offers comprehensive functions such as traceability, risk assessment and compliance management is usually designed in a modular manner so that the functions described above can be activated individually. Real-time satellite monitoring in particular is a feature that quickly pushes costs up to the upper guideline values.
Integration & adaptation to your tech stack
Usually, a tool requires an interface to your ERP system or to other supply chain solutions that are already in use. The corresponding one-off costs should be included directly in the providers’ initial offers.
Number of users
License fees are usually staggered according to the number of users in your company; more users often lead to higher overall costs.
Consulting & support
In addition to the license costs, expenses for training, technical support, regular updates and maintenance must also be taken into account.
From our experience from over 400 matchings in all ESG areas of the new EU sustainability world, we can give you the following rough cost estimate:
For smaller companies, the costs for EUDR software are around 10,000 euros to 50,000 euros per year – depending on import quotas and countries.
Medium to large companies must expect costs of between 50,000 euros to 150,000 euros per year for a comprehensive solution with high adaptability.
In addition to the annual license fees, one-off implementation fees and costs for support and consulting services may need to be taken into account.
Many affected companies are currently looking for a technical solution, want to compare corresponding EUDR software providers and want to hold initial discussions.
The Matchilla team has been continuously screening the rapidly growing market for ESG tools for over two years. Since then, we have maintained all relevant software and tool providers in our database and researched hard and soft factors such as existing modules, functions, languages, interfaces, industry expertise, prices and much more.
You can now benefit from our unique market overview and our expertise from over 400 ESG software comparisons as part of our matching (for medium-sized companies and corporations) when selecting your own software. We would be happy to support you with our insights from the catalog of criteria, a structured provider comparison and the final provider selection.
This is how the comparison of providers works: You invest a few minutes in filling out the EUDR Match Assistant and we will match the three most suitable software providers for you.
The best thing: This software comparison is anonymous, non-binding and free of charge for you (see FAQ).
Would you like to know which EUDR solution suits your requirements? Simply fill out the following Match Assistant.
Searching for a suitable ESG software application is easy and super fast with Matchilla. Contact was made, specifications were formulated and the results were there after a few days. This way we got information about software that we had never heard of before. A real added value. Thank you, dear Matchilla team.
I was impressed by Matchilla's short and clear processes: our specific needs were immediately understood, perfectly analyzed and matched with the right providers in a short time. Matchilla's platform works quickly, easily and precisely at the same time and offers direct added value when selecting service providers.
The newly formed ESG software market is non-transparent and both the provider research and selection are complex and complicated.
We have already successfully carried out the criteria finding and selection process that lies ahead of you for over 400 companies (medium-sized companies and corporations) and therefore probably have the best-maintained market overview of ESG software providers.
We will replicate the best possible EUDR solution for your situation based on our experience and guide you through the jungle of providers.
Using the Matchilla platform is free of charge, non-binding and anonymized to providers. Our data comparison and the personal service to select the best software for you are made possible through the providers’ platform fees. In general, we do not have a paid contractual relationship with you.
Think of Matchilla as your neutral sparring partner in this selection process. We want your company to use the Matchilla platform in many other service provider searches in the future and for you to recommend us to your colleagues out of your own interest.
Start by filling out the criteria catalog (Match Assistant) for EUDR software. This gives us an initial, very good insight into your requirements. We will then optionally contact you personally to ask about missing specifications. This will sharpen the selection criteria and, in addition to comparing the data, we will add our personal experience to the matching.
Our selection process is based on an efficient interplay of data, algorithms and a good portion of personal expertise. From the aggregated input, we create an individual shortlist (matchboard) on the platform with providers who ideally match your requirements.
If your specifications are detailed and sufficient enough, you can use Matchilla as a tendering platform for procurement and receive direct price offers from suppliers that comply with your compliance regulations. Using the invite function, you can share the offers not only with purchasing, but also with all other decision-makers in your company.
Try it/us out without obligation: We look forward to the matching!
Ulli Theves is Head of ESG Software Matching at Matchilla and an expert in technical solutions in the field of sustainability. In MatchZINE he shares his expertise and regularly publishes current information and interesting facts on the subject of ESG.
Was noch vor einigen Jahren nur vereinzelt relevant war, ist nun ein Thema…
Carbon Border Adjustment Mechanism: Was das neue Gesetz für Unternehmen bedeutet und wie…
Die Corporate Sustainability Responsibility Directive stellt einige Unternehmen vor ganz neue Herausforderungen. Einen…
Match me if you can!