Updates on Transaction Verification in Asian Wood Pellet Supply Chains

FSC transaction verification for wood pellets is underway

[APAC, July 2021] Verification of transactions along the FSC wood pellet supply chain is underway in parts of Asia. This is FSC’s response to previously identifying wood pellets produced in Vietnam and Thailand, and exported to other East Asian countries, as high risk products.

Transaction verification is the process of comparing and verifying all transactions related to a specific product type, group or region over a given time period. This comes after FSC and Assurance Services International (ASI) received questions and allegations about the FSC-certified wood pellet supply chain’s integrity in the region, including that wood pellets might be sourced from illegitimately harvested forests and manufactured by non-certificate holders but carrying FSC claims.

All selected FSC-certificated wood pellets (W3.6 wood pellets) and related transactions between trading partners in 2020 (from 1 January to 31 December 2020) in Asia will be verified. Aiming to map wood pellet supply chains, exploring gaps and identifying potential false claims. Transaction verification began in April 2021. Companies were notified directly by their certification body on 23 April 2021. Certificate holders are required to submit data to certification bodies by 23 June 2021.

Certification bodies will then act on mismatching volumes by issuing corrective action requests. Certificate holders may see their certificates suspended or terminated if an investigation determines they have deliberately allowed misleading transactions to enter the FSC system.

Wood pellets are a renewable energy source used for industrial power generation and residential heating purposes. Wood pellets are made from wood waste from wood-processing companies or from fresh forest fibres. Japan and Korea are major importers of wood pellets from South-East Asian countries such as Vietnam and Thailand.

Read more here about transaction verification and the data integrity of the information collected.

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