A new investigation claims Italian tanneries owned by LVMH are seeking exemptions to the EU deforestation law while importing hides linked to forest loss in Paraguay. The move could undermine the EU's efforts to curb deforestation. Context The EU deforestation law , which came into force in 2023, aims to prevent the import of products linked to forest destruction. LVMH 's tanneries in Italy have been identified as importing hides that may originate from deforested areas in Paraguay. Key Data No quantitative data were disclosed in the investigation. The report highlights the potential conflict between luxury fashion supply chains and environmental regulations. Outlook If the exemptions are granted, it could set a precedent for other luxury brands to seek similar relief, potentially weakening the EU's deforestation policy. The industry will need to monitor regulatory responses closely.