EUDR Compliance: Precise Location Data for Traceability and Market Access

Precise location data is the key to EUDR compliance and access to the EU market. Companies must prove that their products do not contribute to deforestation—a requirement that is both technical and strategic. The following requirements are crucial and reflect the EU’s commitment to transparency and traceability in global supply chains (source):

• Accuracy: Geodata must be provided in decimal degree format with at least six decimal places, ensuring pinpoint precision for traceability.
• Area size:
  • Areas > 4 hectares: Polygon with coordinate points.
  • Areas ≤ 4 hectares: Single coordinate point.
• Data format and storage: GeoJSON format, retained for at least five years.
• Data volume: Maximum 25 MB per declaration (approx. 30,000–40,000 points).
• Verification: Satellite imagery and independent audits are mandatory, reflecting the EU’s push for robust oversight (FAO).

Risks of Non-Compliance:

• Fines of up to 4% of annual EU-wide turnover.
• Sales bans, recalls, or trade restrictions.
• Negative impacts on corporate image and ESG ratings.

Why act now? Precise location data not only ensures EUDR compliance but also secures long-term market access and a transparent supply chain. According to McKinsey, lack of compliance can result in costly disruptions and reputational damage.

EUDR Location Data Rules

Required Accuracy of Location Data

The EUDR stipulates that location data must be provided in decimal degree format with at least six decimal places. Latitudes must be between -90 and +90, longitudes between -180 and +180. This level of precision is critical for mapping supply chains and ensuring products are not linked to deforested land (European Commission).

The requirements vary depending on the size of the area:

Once the required accuracy is established, strict guidelines apply to the storage of location data.

Requirements for Data Storage

The EUDR sets clear rules for the storage and regular updating of geodata. This data must be retained for at least five years and be compatible with the EU information system. Storage is done in GeoJSON format. Furthermore, the data must be regularly updated and verified using satellite imagery and independent audits, ensuring ongoing compliance (source).

Continuous review and updating of location data is crucial to ensure compliance with regulations. In July 2024, LiveEO introduced the Commercial Network within the TradeAware platform to facilitate the collection of geolocation data for EUDR compliance. This system enables companies to send business invitations to their suppliers and request location data. The process continues in a cascading fashion until all relevant land parcel data is collected and available on the platform.

EUDR - How to Ensure Accuracy and Integrity of Geolocation Data?

Technical Tools for Location Data

Technical solutions play a crucial role in systematically capturing and verifying the precise location data required by the EUDR. For more insights on sustainability and compliance, see our guide on unlocking opportunities with EUDR. Leading-edge geospatial tools and digital platforms are now widely adopted by companies aiming to meet EUDR standards (Supply Chain Quarterly).

GPS Field Data Collection Devices

Modern GNSS systems are the foundation for accurate geodata collection. The Trimble R12i delivers impressive results with real-time kinematic precision of 8 mm horizontally and 15 mm vertically. It supports 672 GNSS channels and works with all major satellite systems such as GPS, GLONASS, Galileo, BeiDou, NavIC, QZSS, and SBAS. An alternative is the Trimble R2, which offers 10 mm horizontal and 20 mm vertical precision. Both systems can be efficiently combined with TerraFlex software to seamlessly integrate field data (Trimble).

Additionally, satellite-based monitoring enables continuous validation, which is described in more detail in the next section.

Satellite Monitoring Systems

Satellite-based technologies offer an accuracy of ±5% to ±20% when assessing deforestation areas. Changes in forest cover can be detected with an accuracy of up to 0.5 hectares (ESA). An example is the TradeAware system from LiveEO, which provides a comprehensive solution for identifying deforestation risks. With its integrated Commercial Network feature, companies can systematically collect and verify their suppliers’ location data.

"The demand for satellite monitoring solutions has increased as companies shift from physical inspections to data-driven remote verification processes," explains Yevhenii Marchenko, Sales Team Lead at EOSDA (EOSDA).

To further increase the reliability of collected data, many companies are turning to blockchain technologies.

Blockchain Records

Blockchain technology enables location data to be stored immutably. In Ireland, for example, a blockchain solution was developed to ensure traceability in the agriculture and food industry (Teagasc). Using smart contracts, validation rules for data accuracy can be defined and automated checks for EUDR compliance can be performed. The decentralized structure of the blockchain ensures transparency and protects the data from manipulation.

"Europe's ambition is to set the gold standard for blockchain technologies. We have implemented a strong regulatory and policy framework that supports sustainable blockchain innovation as well as the start-up and scaleup ecosystems. Administrations across Europe play a trailblazing role in implementing this exciting and essential new technology." – Roberto Viola, Director-General, DG CONNECT (EU Digital Strategy)

Guide to Setting Up Location Data for German Companies

This guide offers practical steps for implementing location data in German companies, based on the measurement and validation technologies presented above.

Supply Chain Location Data Collection

Precise location data is indispensable for EUDR compliance. Companies must document coordinates in WGS84 format with six decimal places. Areas larger than 4 hectares require GeoJSON polygons to represent the exact boundaries (Planet Labs).

This structured data collection forms the basis for smooth integration into existing company systems.

ERP System Integration

The integration of precise location data into ERP systems should be efficient and automated. The following measures are essential:

• Automatic conversion: Different coordinate formats are converted into GeoJSON.
• Direct integration: Location data can be seamlessly integrated into existing ERP systems.
• Secure storage: Data is stored encrypted according to recognized security standards.
• Multilingual tools: International suppliers can be included via multilingual communication solutions.

After integration, it is important to regularly check data quality to ensure reliable results in the long term.

Regular Data Updates

To meet EUDR requirements, location data must be continuously updated.

• Automated monitoring: Satellite-based technologies enable ongoing site verification. The accuracy of assessments ranges from ±5% to ±20% (FAO).
• Validation process: A multi-stage system ensures data correctness:
  • Automatic coordinate checks
  • Comparison with current satellite images
  • Verification by independent auditors
• Documentation: All relevant documents must be retained for at least five years. These include:
  • Original geodata
  • Change logs
  • Validation evidence
  • Correspondence with suppliers

These steps ensure that companies not only meet legal requirements but also create a reliable data foundation for their processes.

Risks of Violating the EUDR

Fines and Restrictions on Market Access

Violating EUDR requirements for location data can have serious financial and operational consequences for companies. Fines can reach up to 4% of a company’s annual EU-wide turnover. For guidance on managing such risks and sustainability, visit our comprehensive guide to climate risk assessment and management. The competent authorities have extensive powers to enforce compliance. These include:

For serious or repeated violations, companies may also face a temporary trade ban for the affected goods or exclusion from the simplified due diligence procedure. In addition, member states are required to report final judgments against companies to the EU Commission within 30 days. Besides direct measures, violations can significantly damage public reputation and have long-term effects on ESG ratings (Reuters).

Impact on Corporate Image and ESG Ratings

The consequences of violating the EUDR go far beyond financial penalties. Such a violation can undermine stakeholder trust, call into question the company’s environmental responsibility, and negatively affect ESG ratings. This could lead ethically oriented investors to withdraw their support. Learn more about unlocking ESG value for startups and venture capital. A look at other EU regulations shows how serious the consequences can be: In July 2021, Amazon was fined €746 million for a GDPR violation. This penalty forced the company to comprehensively overhaul its data protection practices (Reuters).

To avoid such risks, companies should take the following measures:

• Ensure complete documentation of location data
• Conduct regular supply chain audits
• Guarantee transparency regarding the origin of goods
• Establish proactive risk management

Conclusion

Precise geocoordinates play a central role under the EUDR—not only from a technical perspective but also as a strategic element. The current approaches to capturing, storing, and updating data form the foundation for effectively reducing ESG risks. The numbers speak for themselves: Only 13% of companies have fully mapped their entire supply chain, while 22% have no detailed overview of their suppliers at all (McKinsey). In addition, EU products are responsible for about 10% of global deforestation (European Commission). These figures clearly show how urgently improvements in data quality are needed.

For successful EUDR compliance, the following points are particularly important:

The bottom line? Investing in precise geocoordinates is the key to EUDR compliance. It helps avoid fines and loss of market access while simultaneously improving corporate image. Now is the time to take action!

FAQs

Why are exact geocoordinates with at least six decimal places essential for EUDR compliance?

Exact geocoordinates with at least six decimal places play a central role in proving the precise origin of products. They are indispensable to ensure that goods do not come from deforested areas. Only with this level of precision can seamless traceability be guaranteed throughout the entire supply chain (Planet Labs).

For companies, such precise location data not only means fulfilling the requirements of the EUDR (EU Regulation on Deforestation-Free Products) but also avoiding penalties and maintaining market access. This accuracy is the key to creating transparency and credibly demonstrating compliance with EU regulations.

Which technologies help companies capture and verify precise location data for EUDR requirements?

Companies today have access to advanced technologies such as digital platforms, satellite-based systems, and geodata tools to capture and verify location data precisely. These tools not only help improve data accuracy but also facilitate traceability and support more efficient EUDR compliance. For example, platforms like LiveEO and Planet Labs offer satellite-based monitoring, while blockchain solutions are being piloted for supply chain traceability (Teagasc).

With such technologies, companies can bring more transparency to their supply chains, better assess potential risks, and ensure they meet regulatory requirements. Combining geospatial data with automated processes is particularly effective. It significantly reduces workload while increasing efficiency.

What are the consequences for companies that do not comply with EUDR requirements?

Risks of Non-Compliance with the EU Deforestation Regulation (EUDR) are significant. Companies that ignore the requirements expose themselves to fines of up to 4% of total annual turnover in the EU, sales bans, and reputational damage. The EU’s strict enforcement and reporting requirements mean that violations can quickly escalate into costly legal and operational challenges (Reuters).