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FSC Trace - Blockchain-based Traceability for Certified Wood Products

Sector: Secondary sector · Industry: Wood and paper industry · Organisation: Forest Stewardship Council (FSC) · Maturity level: Pilot

FSC Trace is a blockchain-based platform for comprehensive traceability of FSC-certified wood products throughout the entire supply chain. The solution captures all FSC-certified materials with an error rate of only 2% and enables end-to-end tracking from GIS-local forest areas to retail. The system was developed to make complex supply chains transparent and ensure compliance with regulations such as the EU Deforestation Regulation.

Documentation status

Description

FSC Trace is the blockchain-based traceability platform of the Forest Stewardship Council for the wood and paper industry. Every transaction between trading partners — sawmill to manufacturer, manufacturer to dealer — is blockchain-secured with wood species, quantity, and geolocation coordinates of the source forest. The platform is free for all organisations with FSC certification or promotional licence.

The EU Deforestation Regulation (EUDR) forces a fundamental change in the wood and paper industry: first-time market introducers must prove from 30 December 2026 that their products do not originate from areas deforested after 31 December 2020. This requires seamless, verifiable origin data down to the specific forest parcel. FSC Trace delivers exactly that: geolocation coordinates of the harvest site, harvest time, wood species. The private blockchain allows verification of transaction data without disclosing all supply chain actors — important for competition protection. Integration with satellite imagery (earth observation instruments): coordinates are checked against deforestation monitoring databases. Integration with the FSC Risk Assessment Framework: automatic risk classification. All due diligence data is automatically consolidated and available on demand for authorities. FSC certifies 173 million hectares of forest worldwide — the largest forest certification system on earth.

Perspectives

B2B — organisations perspective

Paper and wood product manufacturers with EUDR obligations can provide seamless origin documentation with geolocation secured by blockchain via FSC Trace — free of charge, directly integrable into EUDR due diligence reports.

B2C — consumers perspective

End consumers gain, for the first time through FSC Trace, the ability to trace the full origin of their wood products and can make informed purchasing decisions for sustainable products. The transparent documentation strengthens trust in FSC-certified products.

Employees perspective

Employees benefit from the automation of time-consuming documentation tasks and can focus on strategic activities. However, the system requires familiarisation with the new blockchain technology and changed workflows.

Benefits

General

B2B — organisations

Employees

Challenges

General

B2B — organisations

Employees

Technology foundation

FSC Trace uses a Proof-of-Authority blockchain technology that creates immutable transaction records, ensuring maximum transparency in the supply chain. This technology is particularly suitable for applications with known and trusted participants, as it operates more efficiently than public blockchains while providing the necessary security and traceability.

Implementation examples

FSC Trace beta implementation with FSC licensees

The participating companies wanted to automate their compliance processes and prepare for upcoming EU regulations such as the Deforestation Regulation. At the same time, they sought ways to credibly document their sustainability commitments.

Selected FSC licensees have been testing the beta version of FSC Trace in their supply chains since Q1 2024.

FSC-certified companies of various sizes are participating in pilot trials launched in the first quarter of 2024. Participants are testing full traceability of their wood products from the forest area to the end product and gaining experience with blockchain-based documentation. The system captures all relevant data with 98% accuracy and automates compliance checks for regulatory requirements.

The solution addresses the complex documentation of supply chains and the time-consuming manual compliance checks. Additionally, it solves the problem of lack of transparency in the timber supply chain.

Tags

Traceability, Supply Chain, Sustainability, Compliance, Certification

Sources

  1. FSC Trace Case Study - Forest Stewardship Council
  2. FSC Trace Informationsblatt
  3. FSC Trace Zweiseiter Deutsch