The EUDR: A Challenge and an Opportunity for Small Sustainable Businesses

4 hours ago10 min

As a sustainable business owner, I’ve always believed that every choice we make, from the suppliers we trust to the packaging that carries our products, reflects our values.

But the conversation around packaging sustainability is evolving quickly, and 2025 is shaping up to be a defining year for anyone in this space.

The EU Deforestation Regulation (EUDR) will soon change how every business that uses wood or paper packaging operates. Whether you export into the EU or source materials that pass through European supply chains, you’ll soon need to prove exactly where your wood came from, right down to the plot of land where the tree grew.

On paper, this is a hugely positive step. It’s designed to prevent deforestation and ensure that every pallet, crate, box, or sheet of paperboard comes from responsibly managed forests. But for small and medium-sized
sustainable businesses like mine, this new legislation brings both validation and significant Challenges.

For larger corporations, compliance may simply mean hiring dedicated teams or investing in advanced traceability systems. For smaller businesses, the impact is more personal and more complex.

Many packaging suppliers, particularly those sourcing globally, aren’t yet ready to provide the level of GPS traceability that EUDR demands. As buyers, we’re several steps removed from the original forest.

That makes collecting origin data extremely difficult. The reality is that small businesses don’t have the same resources as large corporations.

Gathering, verifying, and documenting the source of every piece of packaging takes time, money, and capacity that many SMEs simply don’t have. Even for companies like mine, built on sustainability from day one, the administrative burden is significant. There’s also a clear imbalance of power.

When small businesses ask large suppliers for detailed traceability information, we’re often met with delays and a lack of data, yet we’re still held to the same legal standards as much larger companies.

The scale of work involved in becoming compliant is immense. Every box, tag, and piece of paper now requires a documented chain of custody which for a packaging company means the majority of our products. For a small business, this isn’t just a quick compliance exercise, it’s an ongoing operational project that touches almost every department.

Teams that were once focused on creative design, marketing, or customer experience now find themselves deep in due diligence, spreadsheets, and certification systems. It’s exhausting work, but it’s necessary if we want to maintain the integrity of our sustainability commitments and continue to trade responsibly in the years ahead.

At Tiny Box Company, we’ve been reviewing what the EUDR will mean for us for months now. We’re working closely with our suppliers to ensure the data we need is being captured at source, and we’re doing our best to gain information that is verifiable.

It’s a huge effort, and at times it feels like we’re trying to rebuild the foundations of something we already thought was sturdy. But we also know that doing this groundwork now will set us up for a stronger, more transparent future.

Despite these challenges, the EUDR represents a powerful opportunity for businesses like ours. It’s a chance to demonstrate what we’ve been advocating for years: that transparency and traceability are not just ideals, but achievable and necessary goals.

For those already committed to sustainability, this regulation provides a platform to prove it. Having verifiable data about our packaging doesn’t just satisfy compliance requirements, it builds trust with our customers, who increasingly care not just about what a product is made from, but where it came from.

The EUDR is also encouraging more meaningful conversations between businesses and suppliers. To meet these requirements, we’ll need closer collaboration and greater openness, which can ultimately strengthen relationships and lead to more resilient supply chains. Over
time, this transparency can help shift the market, rewarding those who operate responsibly and pushing lagging suppliers to catch up.

Another positive outcome is that it’s forcing all of us to reconsider how much packaging we really need. When every gram of wood or paper must be traced to its origin, using less suddenly makes both environmental and financial sense for a lot of businesses.

At Tiny Box Company, we’ve already begun rethinking our designs and processes to reduce complexity, choosing materials that are easier to trace and verify. It’s a continuous process to improve what we’re doing and how we work.

It’s easy to see why some small businesses might feel overwhelmed- the paperwork, the data management, the coordination across global suppliers. But once these systems are in place, the benefits will start to show. We’ll have cleaner data, fewer weak points in our supply chains, and greater confidence in the materials we use.

In time, the hours invested now could translate into reduced risk, smoother audits, and a stronger story for customers who value transparency. The EUDR may feel daunting, particularly for small sustainable businesses that are already trying to do the right thing.

But it’s important to see this as an opportunity to align values with verifiable action. It’s a reminder that sustainability is something that can be measured, proven, and improved upon.

Knowing where our packaging comes from isn’t just about compliance. It’s about integrity and accountability, about running a business that truly understands what it’s selling and where its products come from.

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The EUDR: A Challenge and an Opportunity for Small Sustainable Businesses

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