In the context of the European Green Deal, on April 19th, the European Parliament approved a law banning the import of products from deforested areas into European territory of products from deforested areas after 31 December 2020. The law, approved by a majority, still requires ratification by all 27 member States. Companies that want to import into European territory products such as cocoa, chocolate, coffee, wood, rubber, palm oil, charcoal, paper, and products from livestock, among others, must ensure that the territory of origin of the product has not been subject to deforestation or forest degradation.

This Regulation complements the Sustainable Corporate Governance Legislative Initiative, which aims to improve the EU regulatory framework on company law and corporate governance.

Once ratified by member states, large companies will have 18 months to adapt to compliance with the standard, while small companies will have 24 months to do so.