FAQ.- What is the role of third-party verification schemes in risk assessment and risk mitigation?

Certification and third-party verified schemes are often used to meet specific customer requirements for relevant commodities and relevant products. This may include a standard that describes practices that must be implemented during production of the certified commodities, comprising principles, criteria, and indicators; requirements for checking compliance with the standard and awarding certificates; and separate chain-of-custody certification to provide assurance along the supply chain that a product contains only certified or third-party verified material from identified and certified or third-party verified producers.

Third-party verified schemes are operated by an organization that is not a participant in the production or the supply chain of the relevant commodity. Furthermore, some of these schemes are often used to verify that certain standards or rules are being followed, but do not necessarily go as far as certifying the product itself.

This guidance is directed primarily to stakeholders considering making use of certification or third-party verified schemes given their potential added value in providing complementary information, such as on geolocation coordinates and supporting the operators’ risk assessment undertaken as part of their due diligence exercise that relevant products are legal and deforestation-free. Certification and third-party verified schemes can play an important role in promoting sustainable agricultural practices and responsible sourcing, in fostering supply chain transparency and in facilitating compliance.

The EUDR thus acknowledges that certification and other third-party verified schemes may provide useful information on compliance with the Regulation in the risk assessment by supporting evidence that products are legal and deforestation-free. Making use of third-party verification schemes is not a legal requirement, but a voluntary decision of the operator.

This guidance is also relevant for national competent authorities by underlining that while such schemes can be used in the risk assessment procedure, they cannot substitute the operators’ responsibility as regards due diligence. This means that the use of such schemes does not imply a ‘green lane’, since the operator is still required to exercise due diligence and is held liable if it fails to comply with the due diligence requirements of the EUDR.