Product Overview

Summary: This Standard Operating Procedure provides a clear, step-by-step framework to help Australian businesses comply with domestic and international deforestation regulations across their operations and supply chains. It translates complex legal and ESG requirements into practical actions that procurement, operations and leadership teams can implement and evidence with confidence.

Deforestation is now a critical compliance and reputational issue for Australian organisations with exposure to agriculture, forestry, food, textiles, construction materials and global supply chains. Emerging international regulations, investor expectations and customer requirements increasingly demand that businesses can demonstrate that their products are not linked to illegal deforestation or conversion of high conservation value ecosystems. This Standard Operating Procedure turns those broad expectations into a structured, repeatable process your teams can actually follow in day‑to‑day operations.

The Deforestation Regulation Compliance SOP sets out how to identify deforestation‑related risks in your supply chains, conduct due diligence on suppliers, verify land‑use status, and maintain the documentation needed to satisfy regulators, auditors and major customers. It helps Australian businesses bridge the gap between high‑level ESG commitments and on‑the‑ground practice, aligning with frameworks such as the EU Deforestation Regulation (EUDR), the Australian illegal logging and native vegetation regimes, and common industry certification schemes. By embedding this SOP, you reduce regulatory exposure, protect brand reputation, support access to premium markets, and give your workforce a clear, consistent way to make compliant sourcing and operational decisions.

Key Benefits

• Ensure consistent, auditable compliance with deforestation‑related regulations and customer requirements across all business units.
• Reduce legal, financial and reputational risk by identifying and managing deforestation exposure in products, raw materials and suppliers.
• Streamline supplier onboarding and contract management with clear due diligence, documentation and verification steps.
• Demonstrate credible ESG performance to investors, regulators and major customers through traceable and well‑governed processes.
• Support access to export and premium markets that require proof of deforestation‑free or legally sourced commodities.

Who is this for?

• Sustainability Managers
• Environmental Compliance Managers
• Procurement Managers
• Supply Chain and Logistics Managers
• Operations Managers
• ESG and Corporate Affairs Managers
• Legal and Governance Managers
• Agribusiness and Forestry Managers
• Manufacturing Plant Managers
• WHS and Compliance Coordinators
• Quality and Risk Managers

Included Sections

• 1.0 Purpose, Scope and Regulatory Context
• 2.0 Definitions (Deforestation, Degradation, Conversion, High Conservation Value, Legal Harvest, etc.)
• 3.0 Roles, Responsibilities and Governance Structure
• 4.0 Applicable Legislation, Standards and Market Requirements
• 5.0 Risk Assessment for Deforestation Exposure (Products, Geographies, Suppliers)
• 6.0 Supplier Due Diligence and Onboarding Process
• 7.0 Traceability and Chain‑of‑Custody Requirements
• 8.0 Land‑Use Verification and Evidence Collection (Maps, Permits, Certifications)
• 9.0 Procurement Controls and Contract Clauses for Deforestation Compliance
• 10.0 Ongoing Monitoring, Audits and Supplier Performance Management
• 11.0 Incident Management, Non‑Compliance and Corrective Actions
• 12.0 Recordkeeping, Data Management and Reporting
• 13.0 Training, Awareness and Communication Requirements
• 14.0 Review, Continuous Improvement and Change Management
• 15.0 Appendices – Checklists, Supplier Questionnaires, Risk Rating Tools and Sample Forms

Legislation & References

• Illegal Logging Prohibition Act 2012 (Cth) and associated Illegal Logging Prohibition Regulation 2012
• Environment Protection and Biodiversity Conservation Act 1999 (Cth) – provisions relating to native vegetation and protected matters
• Relevant State and Territory native vegetation, land clearing and forestry legislation (e.g. NSW Local Land Services Act 2013, QLD Vegetation Management Act 1999)
• EU Regulation (EU) 2023/1115 on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation (EU Deforestation Regulation – referenced for exporters)
• AS ISO 14001:2016 Environmental management systems – Requirements with guidance for use
• AS ISO 14064 series – Greenhouse gases (for alignment with land‑use and deforestation‑related emissions reporting)
• UN Guiding Principles on Business and Human Rights (due diligence expectations in supply chains)
• Relevant commodity certification schemes (e.g. Forest Stewardship Council (FSC), Programme for the Endorsement of Forest Certification (PEFC), Roundtable on Sustainable Palm Oil (RSPO), Rainforest Alliance) – as applicable to the business