Launch of Transaction Verification loop on FSC-certified teak

FSC is launching a transaction verification loop (TV loop) on FSC-certified teak supply chains, across the world, starting with the first phase – data collection and analysis.

FSC decided to conduct this proactive investigation after receiving multiple reports about fraudulent activities in the global teak market.

This TV loop into FSC-certified teak (Tectona grandis) will cover all product types. In the first phase of this TV loop, 511 certificate holders from 55 countries will be required to submit transaction data for January – December 2021. The scope of this TV loop includes more than 1 million hectares of certified forests, and 441 chain of custody certificate holders.

FSC’s assurance partner, Assurance Services International (ASI) will collect and analyze the transaction data submitted by the certificate holders identified for this TV loop. The preliminary results of the data analysis phase of this TV loop will be available by the first quarter of 2023. ASI will subsequently conduct the TV investigation phase into FSC-certified teak supply chains that show signs of high risk.

Teak is a highly traded and valuable species of wood. Globally, illegally harvested teak is a big problem, as highlighted by various reports by environmental NGOs and the media. In 2021, the European Union Timber Regulation (EUTR) compliance authority took legal actions against European companies dealing with teak products.

FSC and ASI have received several enquiries about FSC-certified teak products. In order to ensure that the integrity of FSC-certified teak supply chains is not threatened by illegal logging, FSC has decided to proactively, and thoroughly, investigate its global network of FSC-certified teak supply chains, in association with ASI. The results of this investigation will enable FSC to take strong action against any certificate holder that is violating FSC’s certification standards.