The EU Deforestation Regulation and the Future of Leather

The European Union's upcoming Deforestation Regulation (EUDR) casts a long shadow over the future of leather, a critical material within the fashion industry. This landmark legislation, set to take effect later this year, aims to prevent products sold in the EU from contributing to global deforestation and forest degradation, initially encompassing key commodities such as cattle, wood, cocoa, soy, and palm oil. Nicole Rycroft, founder of Canopy, emphasizes the pioneering nature of this regulation, highlighting its importance for global climate, biodiversity, and economic stability. As a cattle-derived product, leather was originally included, mandating traceability of raw and processed hides to their farm of origin. This requirement poses a significant challenge, particularly in Brazil, the world's leading cattle producer, where animals are frequently moved between numerous farms, including unlisted suppliers, before slaughter, making comprehensive traceability an arduous task. The estimated annual compliance cost for the leather industry to meet EUDR standards is substantial, approximately €16.7 million, but the potential environmental benefits are projected to be vastly higher, ranging from €979 million to €1,957 million per year.

However, the inclusion of leather in the EUDR's scope has become a contentious issue, primarily due to intense lobbying from global leather industry groups. These groups argue that the required level of traceability is impractical, often asserting that leather is merely a byproduct of the meat and dairy industries and thus not directly responsible for deforestation. Despite these claims, various reports have established direct links between deforested land and leather products sold in the EU, uncovering instances of human rights abuses, corruption, and the encroachment on protected and Indigenous lands for cattle production. Critics, like Michael Rice from Client Earth, suggest that these arguments prioritize economic interests over environmental responsibility, noting that leather represents a significant financial value to the EU, with cowhides from Brazil alone accounting for around €240 million in 2024. The impact of deforestation is particularly acute in regions like the Amazon, where cattle pastures are responsible for an estimated 80% of forest loss. Maria Gorete Rios, a small-holder farmer in Pará, Brazil, exemplifies responsible farming practices, using electronic ear tags to ensure her cattle are raised on non-deforested land. She voices concerns that excluding leather from the EUDR would reduce pressure to combat deforestation, underscoring the need for mandatory regulations to drive environmental preservation.

The current debate underscores the critical role of fashion brands in advocating for sustainable practices. Client Earth has issued an open letter urging fashion companies to publicly support the EUDR before the June 1 deadline, emphasizing that their silence could be interpreted as complicity with the leather lobbyists' agenda. While many brands have existing policies on deforestation-free leather sourcing, transitioning from internal commitments to public political engagement remains a hurdle. Emma Håkansson of Collective Fashion Justice highlights that fashion's inherent political nature necessitates its involvement in such legislative processes. Organizations like Textile Exchange, Leather Working Group, WWF, and Tapestry have initiated various programs and funds to promote sustainable leather supply chains, yet direct public commentary on the EUDR's proposed changes remains limited from many industry leaders. Anke Schulmeister‑Oldenhove of WWF warns that excluding leather, a commodity with a significant deforestation footprint, would disregard clear environmental evidence and undermine consumer confidence. The outcome of this decision could set a crucial precedent for future environmental regulations, potentially signaling that effective lobbying can circumvent scientific evidence and legal obligations, thereby jeopardizing broader climate goals and brand reputations. Rycroft, an optimist, believes that many companies have already invested in robust internal systems and are actively engaging decision-makers to maintain stringent environmental standards.

Embracing transparent and ethical supply chains is not merely a regulatory compliance issue but a fundamental step towards a sustainable future. Businesses, particularly in the fashion sector, bear a profound responsibility to champion environmental stewardship, recognizing that their choices reverberate globally. By actively supporting policies that protect vital ecosystems and ensuring responsible sourcing, industries can foster a more just and sustainable world, demonstrating that economic prosperity and ecological integrity are not mutually exclusive but deeply interconnected.