THE CURRENT SOLUTION
The journey a tree starts after it is felled, transported, transformed and turned into an end product is long and complex, full of paperwork and documentation. Navigating this information all the way back to the stump is too difficult and time consuming in most cases.
Being able to trace a piece of wood on a finished product all the way back to the forest where it originated from is the only way of showing full compliance
- Too many documents and mostly in paper format
- Use of different data processing systems with no interconnection
- Uncertainty about the reliability and lack of proof
- Needs many resources to keep proper track
Responsible forest management is considered a solution to deforestation, on one hand if provides value to forests for its timber and avoids conversion, on the other third party verification avoids illegal logging
Making sustainable forest practices mainstream is a major challenge
- It is time consuming and needs many systems in place
- Keeping the chain of custody during transformation is often complex
- Audits and its preparation can be stressing
- Consumers don’t always understand and value what is behind the label
Regulation / Due Diligence
Since the amendment of the US Lacey Act and the introduction of the EU Timber Regulation timber trade requires compliance. Each country of origin also has its own forestry laws that need to be obeyed.
Having a good due diligence system in place is the only way complying with the law
- Requires a full knowledge of the regulations
- Needs travelling to remote areas in many cases
- Not complying can result in heavy fines and even prison
- Reputation of a band in is steak
The blockchain based solution for the Wood traceability.