Deforestation-Free Supply Chains

Deforestation refers to the loss of forested areas that cannot be compensated for through sustainable forestry or reforestation efforts. In essence, it's the permanent conversion of forested lands through human activities such as clearing, logging, and slash-and-burn agriculture.

Why is it crucial to stop global deforestation? Forests play a critical role in stabilizing our climate. They regulate ecosystems, protect biodiversity, provide habitats for a wide range of plant and animal species, and are vital for removing carbon dioxide from our atmosphere.

Global initiatives and EU laws provide the framework for preserving and protecting forests. Shortly before the 15th World Nature Conference (COP 15), the European Parliament and the European Council provisionally agreed on an EU regulation on deforestation-free supply chains (EUDR). This means that certain goods entering the EU market can no longer contribute to deforestation and forest degradation worldwide. Since June 29, 2023, the EUDR has been in effect, marking the first law of its kind. The regulation applies to the following products:

• Beef
• Cocoa
• Coffee
• Palm oil
• Rubber
• Soy
• Wood

Under the regulation, any market participant or trader importing or exporting derivative products from the listed raw materials—like leather, chocolate, tires, or furniture—into or out of the EU market must prove that the products are not sourced from recently deforested areas or have contributed to forest degradation. Read more here.

These decisions are crucial and necessary because planetary boundaries clearly show that safe operating space for biodiversity and land-use change has long been exceeded.

VAUDE is committed to preserving and protecting forested areas worldwide within our supply chains, ensuring sustainable practices that support biodiversity and the ecological functions of forests.

Throughout the entire value chain, from raw materials to finished products, numerous steps have a direct or indirect impact on nature, biodiversity, and changes in land use.

That's why we assess deforestation risks throughout our supply chain and implement measures to minimize them. Our certifications, such as GOTS for organic cotton, already position us well in terms of natural fibers. But we're just getting started—our aim is to fully grasp VAUDE's impact on biodiversity and land-use changes.

As a first step, we at VAUDE have set the strategic objective of ensuring deforestation-free supply chains.

In 2023, we commissioned a master's thesis to delve deeper into the issue of deforestation and to develop a comprehensive risk analysis and recommendations for ensuring deforestation-free supply chains. The master's thesis, titled "Erarbeitung von Handlungsempfehlungen zur Gewährleistung von entwaldungsfreien Lieferketten - Vermeidung von Deforestation auf Basis von Science Based Targets for Nature und weiteren Frameworks, Tools und Initiativen für unternehmerisches Biodiversitäts-Management” (Development of Recommendations for Ensuring Deforestation-Free Supply Chains - Avoidance of Deforestation Based on Science-Based Targets for Nature and other Frameworks, Tools, and Initiatives for Corporate Biodiversity Management) was authored by Isabell Rzepecki as part of the "Ecological Agriculture" program at the University of Kassel/Witzenhausen.

A key aspect of our comprehensive risk analysis involves thoroughly examining raw materials, ranging from natural resources to packaging. This includes a detailed assessment of the ecological challenges associated with sourcing these materials. We also focus on various locations within VAUDE's supply chain. Our primary production countries—Taiwan, Vietnam, China, Portugal, and Italy—undergo a detailed analysis, considering historical deforestation patterns and reasons for deforestation in the industrial production context. VAUDE's headquarters are another area of significant concern, undergoing intensive analysis regarding the use of office supplies and wood. Lastly, our risk analysis turns its attention to the VAUDE brand itself, examining corporate strategies and policies for their impact on deforestation.

The results of the risk analysis indicate that none of the natural materials analyzed present a significant risk of deforestation. However, wool, natural rubber, and conventional cotton pose a moderate risk. As for product equipment and packaging, only two items of equipment pose a moderate risk, while one cardboard item has a high risk of deforestation, and six others have a moderate risk. Taiwan and Vietnam are at a moderate risk level, while China and Portugal have a low risk of deforestation, and Italy has no risk at all. Due to incomplete data, a risk assessment could not be conducted for the Obereisenbach site. Consequently, the risk analysis suggests establishing a corresponding policy to minimize the risk there.

• Set clear, defined goals aligned with the Science-Based Targets for Nature (SBTN)
• Improve documentation in the area of packaging & logistics
• Develop a guide for suppliers on handling deforestation and land-use changes
• Collaborate with other outdoor industry brands
• Increase transparency across the entire supply chain (especially the deeper supply chain of natural-based materials)
• Evaluate options for certifying natural rubber or switch to 100% synthetic rubber
• Implement various monitoring tools such as kuyua (learn more here)

A significant challenge remains in gaining more transparency into the production of raw materials such as chemical auxiliaries and their potential impacts on nature. Currently, our understanding of this area is limited.

We will report on our progress toward ensuring deforestation-free supply chains in future sustainability reports.

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