Companies sourcing beef and leather from Brazil will need significantly stronger supply chain traceability and due diligence systems if they are to maintain access to the European Union market under a new wave of sustainability legislation, according to a report published by Climate Rights International.

The 52-page report, EU Laws and Brazil’s Cattle Supply Chains: Implications for the Beef and Leather Trade, examines how the EU Deforestation Regulation (EUDR), Forced Labour Regulation (FLR) and Corporate Sustainability Due Diligence Directive (CSDDD) will reshape requirements for companies importing cattle-derived products from Brazil.

Although leather is no longer covered by the EUDR, Climate Rights International argues that the report remains relevant because the FLR and CSDDD will still require companies that choose to import leather into the EU to demonstrate robust due diligence and supply chain traceability for human rights and certain environmental risks.

A major challenge highlighted in the report is tracing indirect cattle suppliers. Because cattle often move through multiple farms before reaching slaughterhouses, many indirect suppliers remain outside existing monitoring systems, making compliance more difficult.

Failure to comply could result in exclusion from the EU market, financial penalties, civil litigation and, in some cases, criminal liability. To reduce these risks, Climate Rights International recommends companies prioritise sourcing from Brazilian states with credible government-backed cattle traceability systems, such as Minas Gerais and Pará, while supporting the development of a transparent national traceability framework.

审核：雒霞