Sustainable Investing | European Consumer Staples: EU Deforestation Regulation: no reset, limited relief

Research evidence excerpt

Sustainable Investing | European Consumer Staples: EU Deforestation Regulation: no reset, limited relief

Equity Research

20 May 2026

Sustainable Investing | European Consumer Staples

EU Deforestation Regulation: no

reset, limited relief

The EUDR simplification review brings no material rewrite to European Consumer Staples

the regulation or change in timing. Simplification measures NEUTRAL

reduce costs, but benefits skew to smaller firms; large listed Sustainable Investing Research

Charlotte Edwards, CFA(iii)

companies still face meaningful implementation and due +44 (0) 20 3134 0392

diligence costs. AAK and Barry Callebaut are most exposed. charlotte.edwards@barclays.com

Barclays, UK

•• No meaningful rewrite or reset of the rulebook. The Commission’s simplification review European Consumer Staples

does not reopen core legislation or propose changes to the revised implementation timeline. Alex Sloane

+44 (0)20 3555 0645 This reinforces regulatory stability ahead of the regulation's end-2026 application for large

alexander.sloane@barclays.com

and medium-sized companies, and reduces the risk of stranded compliance costs for Barclays, UK

companies that have already invested in preparation for the regulation.

Warren Ackerman

•• Simplification measures since 2024 have brought substantial estimated cost +44 (0)20 3134 1903

savings. Taken together, measures adopted since 2024 and those accompanying the review warren.ackerman@barclays.com

Barclays, UK are estimated to reduce aggregate compliance costs by around 75% vs. initial expectations,

primarily through procedural clarification, technical fixes and IT improvements rather than Setu Sharda

substantive easing. + 91 (0)22 6175 1934

setu.sharda@barclays.com

•• An uneven distribution of benefits.