[ UK Environment Act ]

UK Environment Act — Forest Risk Commodities

The UK Environment Act 2021 introduces mandatory due diligence for businesses using commodities linked to illegal deforestation. Businesses with £50M+ annual turnover must map supply chains, assess risk, and report annually.

Status: Secondary Legislation Pending

Pending

The Environment Act received Royal Assent in November 2021, but Schedule 17 (forest risk commodities) requires secondary legislation to take effect. This is expected in 2025-2026. Smart businesses are building compliance infrastructure now to avoid last-minute scrambles.

[ Who Must Comply ]

£50M+ Turnover Threshold

The UK Environment Act applies to businesses with annual turnover of £50 million or more that use forest risk commodities in their UK commercial activities.

Large Businesses

UK-based companies with £50M+ annual turnover that use regulated forest risk commodities in their operations, manufacturing, or retail activities.

Overseas Businesses

International companies operating in the UK market that meet the turnover threshold and use forest risk commodities in products sold in the UK.

Supply Chain Partners

Exporters, processors, and traders supplying forest risk commodities to regulated UK businesses will need to provide traceability evidence and documentation.

[ Covered Commodities ]

Forest Risk Commodities

The Act targets commodities most associated with global deforestation. The Secretary of State can expand this list through secondary legislation.

Cocoa

Beans and derived products including butter, powder, and chocolate

Palm Oil

Crude and refined palm oil, kernel oil, and derivatives

Soy

Soybeans, soy meal, soy oil, and processed soy products

Beef & Leather

Cattle products including hides and processed leather goods

Rubber

Natural rubber and rubber-derived products

Coffee

Green and roasted coffee beans and extracts

Wood & Paper

Timber products, pulp, paper, and wood-based materials

[ Due Diligence Requirements ]

What Regulated Businesses Must Do

Schedule 17 of the Environment Act establishes four core obligations for businesses using forest risk commodities.

1

Risk Assessment

Businesses must assess the risk that forest risk commodities in their supply chain were produced on illegally occupied or deforested land.

2

Due Diligence System

Establish and maintain a due diligence system to identify, assess, and mitigate the risk of forest risk commodities linked to illegal deforestation.

3

Annual Reporting

Regulated businesses must publish an annual report detailing their due diligence activities, risk findings, and mitigation steps taken.

4

Record Keeping

Maintain comprehensive records of supply chain mapping, risk assessments, and remediation actions for regulatory inspection.

[ How OriginTrace Helps ]

Compliance Infrastructure for the UK Environment Act

OriginTrace provides the traceability, monitoring, and reporting tools needed to meet due diligence obligations under Schedule 17.

GPS Farm-Level Mapping

Capture and verify GPS polygon boundaries for every farm in your supply chain, providing geospatial evidence of origin for all forest risk commodities.

Deforestation Monitoring

Satellite-based deforestation alerts overlaid on farm polygons to detect land-use change and identify high-risk supply chain nodes before they become compliance issues.

Automated Risk Scoring

Real-time compliance scoring across traceability depth, documentation completeness, and deforestation risk for every batch and shipment.

Due Diligence Reporting

Generate audit-ready annual reports with full supply chain mapping, risk assessment summaries, and documented mitigation actions.

Full Chain Traceability

End-to-end traceability from farm to export, maintaining chain-of-custody through aggregation, processing, and transformation.

Multi-Regulation Alignment

Single traceability infrastructure that satisfies UK Environment Act, EUDR, and buyer-driven sustainability standards simultaneously.

[ Current Status ]

Legislative Timeline

Secondary legislation is pending. Smart businesses are preparing now to avoid last-minute compliance scrambles.

November 2021

Environment Act Enacted

The UK Environment Act 2021 received Royal Assent, introducing Schedule 17 on forest risk commodities.

2022-2023

Consultation Period

Defra consulted on secondary legislation to define regulated commodities, thresholds, and enforcement mechanisms.

2024-2025

Secondary Legislation Development

Drafting of statutory instruments to set the scope, reporting requirements, and penalties for non-compliance.

Expected 2025-2026

Secondary Legislation Enacted

Final regulations expected to come into force, establishing mandatory due diligence obligations for businesses above the turnover threshold.

[ FAQ ]

Frequently Asked Questions

Everything you need to know about the UK Environment Act and forest risk commodity compliance.

[ Get Started ]

Prepare for the UK Environment Act Today

Secondary legislation is coming. Build your compliance infrastructure now with OriginTrace — the platform trusted by exporters across Africa, Asia, and Latin America.