CMS launches cooperation with satellite start-up on new EU Deforestation Regulation

Germany

A new collaboration between CMS and LiveEO supports companies in implementing the requirements under the new EU Deforestation Regulation (EUDR).

The technology partnership between CMS Germany and LiveEO aims to integrate CMS's expertise into the EUDR tool developed by LiveEO to make it easier for clients and customers to implement the EU Deforestation Regulation.

How did the collaboration come about?

It was more of a coincidence. We published an article on our CMS blog about the EU Deforestation Regulation, or "EUDR" for short. Then, LiveEO noticed it and contacted us. We arranged an initial meeting. In the discussions that followed, we continued to discuss our respective activities in connection with the EUDR. We began to see that we could complement each other well. This ultimately led to our collaboration.

What is LiveEO?

LiveEO uses earth observation and AI to provide precise monitoring solutions for infrastructures and the environment to make them safer and more resilient. Using innovative technology and artificial intelligence, LiveEO unlocks the full potential of satellite data to provide organisations with precise data. These data increase the safety, efficiency and sustainability of operations and make LiveEO a pioneer in the area of earth observation.

What is the aim of the collaboration and what are the benefits for each side?

CMS and LiveEO want to make it easier for companies to comply with the EUDR. 

LiveEO has developed a platform called TradeAware to simplify compliance with the EUDR for the companies concerned. In addition to precisely detecting deforestation events, the platform can be used to upload and analyse central documents and complete due diligence questionnaires. TradeAware ensures that documentation is securely stored and that the legally required due diligence statements are prepared, which can make it much easier for companies to comply with EUDR regulations.

CMS has contributed to developing the legal aspects of TradeAware by drawing up a questionnaire. Together, CMS and LiveEO can handle the legal, technical and administrative topics of the EUDR from a single source. Our joint approach enables companies to efficiently manage the complex requirements of the EUDR.

What role does CMS play in the partnership? What role does LiveEO play?

To put it simply - LiveEO provides the assessment of deforestation events and the technical platform TradeAware, while CMS provides the necessary legal support. This way, we can offer companies a very high degree of certainty when preparing the due diligence statements required under the EUDR (and, if necessary, starting points for corrective actions).

We have extensive experience in risk assessment for companies, whether in transactions or in the context of other compliance requirements. On this basis, we review compliance with the requirements under the EUDR, including the collection of information, risk assessment and risk mitigation measures. CMS's services include evaluating existing compliance strategies and - if necessary - making recommendations for further measures. This comprehensive legal review makes it easier to adapt to the EUDR regulations.

What are you planning? What have you already accomplished?

We have already done several very successful webinars to inform our clients and customers about the requirements of the EUDR and the support that is available. As a result we have had numerous discussions with large and important companies. We are planning other events, both internally and externally, and involve each other with our respective clients whenever it is suitable. We would like to show you the advantages of our approach. This symbiosis is still unique on the legal market. We are currently testing the practical functioning of our cooperation and the platform in pilot projects.

How would you describe the collaboration? What challenges did you face and how did you solve them together?

Dialogue is our key to success. That is how the symbiosis of tech and law works. We are in a constant dialogue. We all have extremely high quality standards to make the EUDR manageable for the companies concerned. It can also be a blueprint for other applications of this kind - because either the need will arise, or it already has. Diligence in the supply chain will increasingly raise the question of (technical) support on the one hand, and (legal) assessment on the other. However, the challenge that was and is so exciting for us is to implement the legal requirements as technical tools.

What are the most important findings from the project - what did you learn from it?

Companies often vastly underestimate the EUDR. Its scope of application and the potential consequences are immense in comparison to the German Supply Chain Due Diligence Act. Very few people realise how much preparation time is needed to fulfil the requirements of the EUDR. Although it will not take effect until the end of 2025, action has to be taken now. Medium-sized companies in particular are still hesitant in this respect and do not know how to meet the requirements. There is not much time. That's why it's important that we keep each other informed and stay on the ball. It also requires a lot of consultation with each other - e.g. in regular meetings.

How important is the EUDR for CMS and LiveEO and what are companies concerned about in connection with the Regulation?

The EUDR must be seen in the light of the European Green Deal and Europe's ambition to contribute to a sustainable economy. For companies, it is a building block of general ESG compliance. It is at the interface of sustainable supply chains and products. Not least because of the severe fines provided for under the EUDR in the event of infringements, it is essential for the companies concerned to address implementation of the EUDR soon.