The European Commission has decided to exclude leather, hides, and skins from the EU’s anti-deforestation regulation ahead of its implementation in December. While this eases compliance pressure on leather supply chains, the law will continue to cover key commodities such as cattle, wood, cocoa, soy, palm oil, coffee, and rubber, along with some derived products.
The move follows industry lobbying, with arguments that leather is a by-product of meat production and does not directly drive deforestation. As a result, leather importers will face fewer due diligence and traceability requirements, reducing compliance burdens at a critical time for businesses preparing for the regulation.
However, the core framework of the law remains unchanged. Companies dealing with covered commodities must still prove their products are not linked to deforestation after 2020, making supply chain traceability and compliance essential for market access to the EU.
The decision reflects a more targeted regulatory approach, focusing on commodities directly linked to forest loss. While it offers relief to the leather sector, companies may still face reputational risks if sourcing is tied to high-risk regions.
For businesses and investors, the message is clear: scrutiny on deforestation-linked supply chains is intensifying. Strong due diligence systems, transparent sourcing, and robust governance will remain critical as the EU continues to shape global ESG and trade standards.
