Nestlé, Mars Warn EU Against Delaying Deforestation Law, Citing Market Uncertainty

Several major consumer goods companies -including Nestlé, Mars Wrigley, and Ferrero - have urged EU lawmakers not to postpone or dilute the upcoming EU Deforestation Regulation (EUDR), warning that further delays would create significant market uncertainty and undermine efforts to halt global forest loss.

In a new joint letter, the companies cautioned that any additional postponement would penalize businesses that have already invested heavily in compliance systems while rewarding slower-moving competitors. The group argued that uncertainty around the law’s final provisions risks discouraging long-term engagement from companies and suppliers working to meet EU sustainability standards.

The intervention comes amid growing speculation over the EUDR’s implementation timeline. In September, EU Commissioner Jessika Roswall proposed a one-year delay, citing concerns that existing IT systems may be insufficient to manage the data requirements of the regulation. While the European Commission reiterated in October that the law is still set to take effect at the end of this year, it introduced a six-month enforcement grace period for large companies and extended the compliance deadline for small enterprises to the end of 2026.

The Commission also proposed several simplifications, including shifting due diligence reporting primarily to operators placing relevant products on the EU market, reducing the number of required submissions across supply chains. However, several member states continue to advocate for a one-year delay, a “stop-the-clock” mechanism, and a review clause that could reopen the text for further changes.

European Parliament lawmakers are expected to vote on the Commission’s proposals next week.

In their letter, the companies warned that mechanisms allowing the EUDR to be suspended or revisited without clarity on future requirements would “extend current legal and market uncertainty,” create substantial sunk costs, and “fatally compromise the EU’s reputation as a reliable partner” for producer countries.

While the signatories welcomed the enforcement grace period, they expressed concern that some of the Commission’s changes may unintentionally add complexity for downstream operators such as manufacturers and retailers. Instead, they proposed a streamlined approach in which:

• Due diligence statements are filed only by companies first placing products on the EU market.
• All companies maintain due diligence systems and respond to evidence of non-compliance.
• Companies keep clear records of suppliers and customers in their value chains.

According to the companies, this model would maintain essential due diligence and traceability requirements while reducing administrative burdens.

First introduced in 2021, the EUDR aims to prevent deforestation-linked commodities -including palm oil, beef, cocoa, coffee, rubber, soy, and various derived products - from entering or leaving EU markets. Originally set to apply from December 2024, the regulation has already been delayed once to allow companies more time to prepare.