Moody's Warns of Increased Supply Chain Risk Due to New EU Deforestation Legislation

ComplianceNuts & Bolts
Written By Jennifer Joslyn

Moody's has highlighted that the new Deforestation Regulation introduced by the European Union poses a significant risk to European supply chains. The regulation aims to reduce the EU's contribution to global deforestation and covers seven commodities, imposing fines on operators who fail to comply. Moody's emphasizes that compliance costs and reputational damage will affect companies globally, particularly those in emerging markets, as supply chains face greater scrutiny from consumers, investors, and regulators.

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Jennifer Joslyn
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