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A challenge and an opportunity for small sustainable companies

As the owner of a sustainable business, I have always believed that every decision we make – from the suppliers we trust to the packaging of our products – reflects our values.

But the conversation around packaging sustainability is rapidly evolving, and 2025 is shaping up to be a pivotal year for everyone in this space.

The EU Deforestation Regulation (EUDR) will soon change the way all companies that use wood or paper packaging work. Whether you export to the EU or supply raw materials through European supply chains, you will soon need to prove exactly where your wood comes from, right down to the property where the tree grew.

On paper, this is an extremely positive step. It aims to prevent deforestation and ensure that every pallet, box, box or sheet of cardboard comes from responsibly managed forests. But for small and medium-sized ones
For sustainable businesses like mine, this new legislation brings both validation and significant challenges.

For larger companies, compliance may simply mean hiring dedicated teams or investing in advanced traceability systems. For smaller businesses, the impact is more personal and complex.

Many packaging suppliers, particularly those sourcing globally, are not yet able to provide the level of GPS traceability required by the EUDR. As buyers, we are several steps away from the original forest.

This makes collecting origin data extremely difficult. The reality is that small businesses do not have the same resources as large corporations.

Recording, checking and documenting the origin of each individual piece of packaging requires time, money and capacity that many SMEs simply do not have. Even for companies like mine, which focus on sustainability from day one, the administrative burden is significant. There is also a clear power imbalance.

When small businesses ask large suppliers for detailed traceability information, they often experience delays and a lack of data. Nevertheless, we are subject to the same legal standards as much larger companies.

The amount of work required to comply with regulations is immense. Every box, label and piece of paper now requires a documented chain of custody, which for a packaging company means the majority of our products. For a small business, this is not just a quick compliance exercise, but an ongoing operational project that affects nearly every department.

Teams that once focused on creative design, marketing, or customer experience are now deep in due diligence, spreadsheets, and certification systems. It’s hard work, but it’s necessary if we want to maintain the integrity of our sustainability commitments and continue to act responsibly in the years to come.

At Tiny Box Company we have been thinking about what the EUDR will mean for us for months. We work closely with our suppliers to ensure that the data we need is collected at the source and we do our best to obtain verifiable information.

It’s a huge effort and sometimes it feels like we’re trying to rebuild the foundations of something we already thought was stable. But we also know that preparing now will set us up for a stronger and more transparent future.

Despite these challenges, the EUDR represents a great opportunity for companies like ours. It is an opportunity to show what we have been committed to for years: that transparency and traceability are not just ideals, but achievable and necessary goals.

For those who are already committed to sustainability, this regulation provides a platform to prove it. Verifiable data about our packaging not only meets compliance requirements, but also creates trust with our customers, who increasingly care not only about what a product is made of, but also where it comes from.

The EUDR also promotes more meaningful conversations between companies and suppliers. To meet these needs, we need closer collaboration and greater openness, which can ultimately strengthen relationships and lead to more resilient supply chains. Over
At the same time, this transparency can help transform the market by rewarding those who act responsibly and pushing lagging suppliers to catch up.

Another positive outcome is that it forces us all to rethink how much packaging we really need. If every gram of wood or paper has to be traced back to its origin, reduced consumption suddenly makes both environmental and financial sense for many companies.

At Tiny Box Company, we have already begun rethinking our designs and processes to reduce complexity and select materials that are easier to track and verify. It is a continuous process to improve our work and the way we work.

It’s easy to see why some small businesses might feel overwhelmed – the paperwork, the data management, the coordination between global suppliers. But once these systems are in place, the benefits will become apparent. We will have cleaner data, fewer vulnerabilities in our supply chains and greater confidence in the materials we use.

Over time, the hours invested now could result in lower risk, smoother audits, and a stronger story for clients who value transparency. The EUDR can seem daunting, especially for small sustainable businesses that are already trying to do the right thing.

But it is important to see this as an opportunity to balance values ​​with verifiable actions. It’s a reminder that sustainability is something that can be measured, proven and improved.

Knowing where our packaging comes from is not just about compliance. It’s about integrity and responsibility, about running a company that truly understands what it sells and where its products come from.


Rachel Watkyn

Eco-entrepreneur Rachel Watkyn is the founder of the Tiny Box Company, which has an annual turnover of £10,000,000. www.tinyboxcompany.com and Know The Origin www.knowtheorigin.com, which enable consumers to make sustainable choices in home goods, sportswear and gifts based on their personal values. Rachel is a well-known sustainability expert and, to date, the most successful woman to ever appear on Dragon’s Den. Rachel leads a large team in Sussex and is a frequent speaker at business events. Rachel runs free business courses once a week for those who want to get back into work or have a new business idea.

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