No Burmese Teak Found in FSC Supply Chains

The final results of the transaction verification (TV) loop on FSC-certified teak did not reveal any evidence that Burmese teak is entering FSC supply chains. While there are no forest management certificate holders in Myanmar that sell certified teak, the findings of this TV loop also confirm that none of the certificate holders within the scope of this TV loop reported any purchase or sale of certified teak from Myanmar.

FSC decided to conduct this proactive investigation after receiving multiple reports about fraudulent activities in the global teak market. Teak is a tropical and subtropical hardwood tree species, naturally native to south and southeast Asia, and cultivated and planted in Africa and Latin America areas. Teak wood is particularly valued for its durability and water resistance. Globally, illegally harvested teak is a significant problem, as highlighted by various reports by environmental NGOs and the media.

FSC and Assurance Services International (ASI) launched this TV loop on FSC-certified teak supply chains in June 2022. The scope of the TV loop included 511 certificate holders from 55 countries who have teak (Tectona grandis) in their certification scope. The TV loop traced the flow of certified teak from timber harvested by certified forest management units (FMUs) to raw and semi-finished products such as roundwood logs, sawn wood, boards, and flooring. 

The investigation revealed that a certificate holder unintentionally sold non-FSC certified products from Brazil with FSC claims. This incident highlights a major lapse in conformity with FSC certification standards. The gravity of the situation will be further analysed and examined to understand the full extent and impact of the error. Relevant remedial actions shall be implemented to rectify the issue, ensure future compliance, and maintain the integrity of the FSC certification process.

Some of the European certificate holders participating in this TV loop trade in non-certified Burmese teak along with FSC-certified teak. This type of situation could trigger a Policy for Association violation case. An FSC-certified company engaging in illegal trade, even if it takes place outside the FSC certification scope, may be in breach of FSC’s Policy for Association. In case transactions are confirmed to be illegal, FSC will take the necessary steps that can lead to FSC disassociating from the certificate holder and its entire corporate group.

Through this TV loop, ASI also found evidence of trademark infringement. Despite being terminated, a former certificate holder continued to use the FSC logo on their website, claiming that they sell FSC-certified teak products. FSC has taken legal action against the infringer.  

Background

The teak Transaction Verification (TV) loop was launched in 2022 by Forest Stewardship Council (FSC) and Assurance Services International (ASI) to identify trade patterns and volumes of certified teak (Tectona grandis), and related products in the global network of FSC certified teak supply chains, aiming to address persistent accusations by stakeholders and the media regarding the Burmese teak trade by certified companies. The TV loop follows the supply chains of teak products from producer markets in Latin America and Southeast Asia to processing and consumer markets in Southeast Asia and Europe.

Former news releases:

• Launch of Transaction Verification loop on FSC-certified teak | fsc.org (June 14, 2022)
• Teak supply chains show concerning integrity risks | fsc.org (July 4, 2023)

About FSC’s Policy for Association:

The Policy for Association (PfA) defines six destructive activities that are unacceptable to FSC, including illegal trade of timber and forest products. Certificate holders need to conform with the PfA in the certified and non-certified parts of their operations; and the entire corporate group it belongs to needs to be in conformity. In case a certificate holder is found to be trading/processing Burmese teak in countries where importing Burmese teak is prohibited, FSC will look into it as a potential case of PfA violation connected to the use of illegal wood. Such cases can result in FSC disassociating from the entire corporate group of the certificate holder. 

FSC operations in Myanmar:

The Board of Directors of FSC International have recently provided directions to FSC International that will ensure that FSC’s operations in Myanmar are strictly regulated and monitored. While the Board’s decision relates to FSC’s core labour requirements, this will further ensure that Burmese teak does not contaminate certified teak in cases where a certificate holder trades in both certified and non-certified teak.