The results of the third transaction verification (TV) loop on FSC-certified bamboo supply chains reveal that several certificate holders in China pose a serious threat to the integrity of FSC’s certification system. Source: Timberbiz
While some certificate holders have made false claims on their products, others have engaged in actions that pose a significant risk to FSC’s integrity and credibility.
Based on the evidence gathered by Assurance Services International (ASI) during the TV loop, FSC has blocked the following certificate holders for making false claims:
- Hangzhou Ruihe Bamboo Wood Co., Ltd (FSC-C138791): This company applied FSC 100% claims on bamboo plywood, but the origins of the raw material could not be verified. They also did not report any transactions to their certification body.
- Hangzhou Zen Bamboo & Hardwood Products Co. Ltd. (FSC-C147487) and Hangzhou Zenbamboo Technology Co., Ltd. (FSC-C192793): They sold bamboo plywood and veneers with FSC 100% claims but reported zero transactions to their certification body for three consecutive years. After the certificate of Hangzhou Zen Bamboo was terminated, a new company called Hangzhou Zenbamboo Technology was established, which obtained FSC certification. FSC has confirmed that the new company is the successor of Hangzhou Zen Bamboo. Therefore both certificate holders have been blocked.
- Nanping City Jianyang Xinen Bamboo Industry Co., Ltd. (FSC-C155776): This company sold bamboo products claimed to be FSC certified without having eligible raw materials to support these claims. Furthermore, they did not disclose these sales during the surveillance audit.
- Xuancheng Bothbest Enterprise Co., Ltd. (FSC-C165363): This certificate holder repeatedly (from 2018 to 2022) obtained certification and then voluntarily terminated their certificate within 12 months each time. This enabled them to skip the first surveillance audit after getting certified. During the timeframe of this TV loop (July – December 2021), they sold bamboo products with FSC 100% claims but reported no transactions with FSC claims in the documents submitted to their certification body.
FSC is investigating several other cases where potential integrity risks were identified by ASI. More certificate holders within the bamboo supply chain may be blocked as a result. Information about blocked organizations can be found in FSC’s public search.
In addition to false claims, the following integrity risks and wrongdoing by certificate holders were identified in this TV loop:
- Some certificate holders did not report the sale of certified products to their certification bodies during the annual surveillance audit, which is a normative requirement by FSC. These sales were discovered when the certificate holders or their clients within the supply chain submitted their transaction data for the TV loop.
- The investigation revealed that there is a risk of a blocked organization who is continuing their wrongdoings but routing them through a valid certificate holder. This typically happens when personnel in decision-making and leadership positions at an active certificate holder previously managed a blocked organization.
- Some certificate holders were observed as being uncooperative, hindering the progress of the TV loop.
Most certificate holders against whom evidence of integrity risks have been found belong to the manufacturing segment of the FSC bamboo plywood/flooring supply chain, primarily located in China. Consequently, products with false claims could eventually be passed on to downstream buyers, including retailers or distributors in import markets, primarily in Europe and North America.
Transaction verification investigations and analysis of certified supply chains will help FSC to strengthen its normative framework. Observations from this investigation would be included in the ongoing revision process of FSC’s chain of custody standards. For more details, click here: Revision of Chain of Custody Standards and FSC-STD-20-011 Chain of Custody Evaluations | FSC Connect
Certificate holders purchasing manufactured bamboo products are encouraged to conduct their own due diligence on FSC-certified suppliers and verify that the purchased products are correctly covered by the scope of the suppliers’ FSC certificates.
