In 2025, Drive Sustainability continued its work to support the automotive supply chain in preparing for the EU Deforestation Regulation (EUDR). While the regulation is designed to strengthen global efforts to curb deforestation and promote sustainable sourcing of key commodities, several regulatory changes and uncertainties that emerged throughout the year affected timelines, planning, and industry readiness.
Navigating a Shifting Regulatory Context
The year was marked by further significant uncertainty, driven by ongoing discussions within the European Commission regarding amendments to the scope and implementation timeline of the EUDR. As these deliberations continued, companies faced challenges in interpreting the evolving context and planning for compliance.
Drive Sustainability focused on staying closely connected with regulatory developments, monitoring decision-making processes, and keeping its OEMs informed. As the end of the year approaches, the proposal for simplification and evolving proposals has made it challenging for the industry to prepare with confidence.
Impact on Planned Activities
Several activities planned for 2025 required reassessment due to the lack of visibility on the final regulatory framework:
Educational Activities for OEMs and Suppliers
Without sufficient clarity on key elements of the regulation, such as product definitions, due diligence requirements and timelines, the onboarding stakeholders in the planning and delivery of these educational activities had to be put on hold until 2026.
Updates to the Drive Sustainability Deforestation SAQ
The Deforestation Sustainability Questionnaire (DSAQ) – launched in February of this year, underwent months of use and feedback for improvement arose. The latest proposed changes to the EUDR also influenced its first content revision, meaning updates needed to wait until a final decision becomes available.
Preparing for the Way Forward
Despite delays, Drive Sustainability is using the end 2025 to proactively prepare for future compliance by initiating a comprehensive review to assess the implications of proposed EUDR amendments on the Drive Sustainability SAQ, member expectations, and supplier engagement processes. This assessment analyzed:
- – OEM amendment proposals
- – Draft changes published by the European Commission
- – Feedback from the Deforestation SAQ user group
The aim is to ensure that Drive Sustainability’s tools and guidance remain aligned with the evolving regulatory landscape as soon as possible.
While 2025 presented setbacks and uncertainty, it also reinforced the sector’s shared commitment to addressing deforestation risks and promoting sustainable sourcing practices. As the automotive sector waits for the final regulatory decision expected in 2026, Drive Sustainability remains committed to supporting a harmonized, practical, and effective approach to EUDR compliance.
- – For more information, please reach out to Senior Project Manager, Vera Gaouad.
- – Read more on our Environmental Due DIligence work
