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Environmental, Social and Governance (“ESG”) Newsletter 2025

Oct 10, 2025

The EU Deforestation Regulation (EUDR), effective June 2023 with enforcement from December 2025, requires companies—especially operators and traders in Hong Kong, Mainland China and the wider Asia-Pacific—to ensure seven key commodities (cattle, cocoa, coffee, oil palm, rubber, soya, wood) are deforestation-free and legally produced, backed by exact geolocation data, risk assessments, mitigation measures, due-diligence statements and five-year record-keeping; non-compliance risks fines up to 4% of EU turnover, product seizure and market bans, while the EU Commission offers relief via reusable statements for re-imports, annual filings and group reporting options—Baker Tilly Hong Kong helps businesses engage suppliers effectively, streamline EUDR due-diligence reporting and optimize sourcing strategies—turning regulatory compliance into a genuine competitive edge.

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