Professional Documents
Culture Documents
THE VENEER
How Indonesia’s Last Rainforests
are being Felled for Flooring
contents
Theft of Indonesia’s
Rainforests 1
1
Theft of Indonesia’s Last Rainforests
voluntary approach.
In the meantime, as this briefing
demonstrates, companies in Europe and the US,
their imports unregulated by government,
continue – albeit unwillingly – to drive the
destruction of Papua’s forests, demanding wood
at any cost and with few questions asked.
2
A Fashion for Flooring
© Richard Hoffkins
A Fashion for Flooring
As carpet and linoleum have dropped out of fashion,
over the last decade sales of wood flooring in Europe
and North America have grown dramatically. The
recent proliferation of home improvement television
shows has helped popularise wood flooring as
fashionable, modern and practical, while design
innovations and a plentiful supply of cheap raw
materials have served to bring down prices and
broaden the market. Though much of this growth is
made up of cheap laminate flooring (not generally
included in references to wood flooring), sales of
real wood flooring have also more than doubled
since the mid-nineties. with timber from Burma, where two-thirds of timber Merbau is
More wood flooring was sold in 2004 than ever exports are illegal.(23) Most of the kempas and balau
in trade originates in Indonesia’s Sumatra and
the most
before, with Europe and the US consuming an
estimated 189.5 million square metres – enough to Kalimantan where illegal logging is the norm. popular
floor the entire area of Washington DC.(16) Brazilian jatoba supplied by companies suspected of tropical
Consumption of wood flooring in the US alone rose involvement in illegal activities has recently been
by 40 per cent in the five years to 2004, when sales shown to have been used in a museum in Spain.(24) timber used
of $2.4 billion were recorded.(17) The figure for 2005 Lesser-known African species doussie and iroko are in flooring.
is expected to be at least five percent higher likely to have originated in Gabon or Cameroon,
again.(18) Germany is the largest market for wooden where at least half of all logging is estimated to be
flooring in Europe, followed by Spain, Italy and the illegal.(25) Most of the temperate species used in
Nordic countries.(19) Sales in the UK were worth flooring have also suffered from illegal felling, most
around $118 million in 2004.(20) notably in the Russian Far East.
In North America and Europe, sales of wood The brochures of the big European and North
flooring are dominated by a small coterie of giant American companies supplying merbau flooring are
manufacturer-distributors. These companies either replete with references to the supposed
manufacture flooring in their own factories or environmental credentials of their products. They
contract out the production to facilities in Asia. provide assurances to concerned consumers that the
They distribute the finished flooring in major retail timber used is all ‘carefully selected’, or comes from
outlets under their own brand names. The top four ‘sustainably managed forests’. They may also state
companies had combined worldwide sales of $1.46 that new trees are planted every time old ones are Above: hardwood
billion in 2004.(21) By far the largest wood flooring cut. Over the past year, EIA/Telapak sought to test flooring sales are at
company in the world is the US company Armstrong these claims. They did not stand up to close scrutiny. record levels.
Industries Inc., which recorded turnover in its wood
flooring divisions of $832 million in 2004.(22) The
next biggest company is German-based Tarkett,
followed by Swedish outfit Kahrs. Danish company WOOD FLOORING FACTFILE
Junckers, the largest supplier of solid wood flooring,
There are three different kinds of real wood flooring – solid,
completes the top four. engineered and parquet. Though it is produced with wood
Although oak has traditionally been the most fibre, cheap laminate flooring relies on photographic
commonly used species for flooring in Europe and reproduction of wood grain for its appearance. References to
the US, demand is shifting to darker and more wood flooring in this report do not include laminates.
‘exotic’ wood species – code for tropical wood. All Solid wood floor – This is flooring with one piece of wood from
the major floor manufacturers in Europe and the US top to bottom. Solid wood flooring is sold as single planks of
have ‘exotic’ ranges of flooring made with tropical wood 14 to 22 mm thick.
timber. Merbau is the most common species used, Engineered floor/multilayer floor – This is flooring with
and features in the ranges of all the major brands. a top-layer veneer of hardwood usually 3-7mm thick. This
Flooring is also available in teak, balau and kempas layer is glued on to lower layers of cheaper wood or
from SE Asia, jatoba from South America, and in fibreboard. The vast majority of real wood flooring sold
African woods such as iroko. worldwide is of the engineered variety.
In every case there are numerous documented Parquet/Mosaic – this refers to small blocks of solid wood
examples of illegal logging of these tropical species which are laid in a pattern formation.
in source countries. Teak flooring is usually made
3
Behind the Brand
• US-based Armstrong is the largest • Kreasi admits that merbau trees are
flooring company in the world, with becoming scarce in Papua through a lack
worldwide sales of wood flooring in of re-planting.
2004 of $832 million; Armstrong sells
merbau flooring under the Bruce,
• Kreasi staff admit that they cannot be
sure where the company’s merbau
Hartco and Robbins brands.
comes from or if it is legal.
• Armstrong merbau flooring is supplied by
• Armstrong merbau flooring is marketed
Indonesian company PT Tanjung Kreasi.
in The Home Depot and Lowe’s home
• Kreasi buys all its merbau as logs from improvement stores in the US and in
Papua, purchased through agents on Jewson and Allied Carpets stores in the
the spot market. UK. Leroy Merlin stores across Europe
Below: Armstrong’s also market merbau flooring by
Bruce flooring, on sale • Kreasi’s clients do not demand timber
Tangung Kreasi.
at The Home Depot, to be certified as sustainably harvested.
USA, January 2006.
4
Behind the Brand: Armstrong /Bruce
Data from the US Port Import Export Buyers were far more concerned about prices, and Armstrong’s
Reporting Service (PIERS) reveals that Armstrong knowing legal and certified timber costs more,
buys merbau flooring from Indonesian few if any demanded high environmental Indonesian
manufacturer PT Tanjung Kreasi Parquet Industry standards. Even if its clients asked for certified suppliers
(Kreasi).(29) Kreasi is one of the world’s biggest materials Ms Titin pointed out that no certified
merbau was available to Kreasi.
admit they
engineered wood flooring manufacturers, and
export to 45 countries.(30) Kreasi markets its Ms Titin said the prices Kreasi pay for its cannot be
flooring under the Teka brand name, though it also Papuan merbau logs had more than doubled in sure where
produces private-label products for brands like recent months, from $110 to $240 per cubic
Armstrong. In the first ten months of 2005 metre. She cited government enforcement on
their merbau
Armstrong imported almost three thousand tonnes merbau smuggling from Papua and a scarcity due comes from
of flooring from Kreasi into the US.(31) to the lack of replanting as the reasons for this or if it is
EIA/Telapak undercover investigators visited increase. As such, regardless of whether they
Kreasi in August 2005 and met marketing executive were knowingly buying illegal timber themselves, legal.
Ms Titin Siswadi, who confirmed that around a tenth Kreasi, and in turn customers like Armstrong,
of their 5 million square metre annual output was certainly will have enjoyed the artificially
merbau, and that the company supplies Armstrong. suppressed prices that illegal Papuan merbau
She stated that all of Kreasi’s merbau originates as generated in the market for so long.(39)
logs from Papua, which it buys on the spot market Merbau flooring supplied by Armstrong is on Below: Barge loaded
from middlemen for shipment to their factory in sale in branches of the two largest home with merbau logs
Java. EIA/Telapak later documented a barge loaded improvement chains in the US – The Home Depot from Papua owned
with Papuan merbau logs at Semarang port in Java, and Lowe’s.(32) It is also sold in branches of Jewson by Tanjung Kreasi,
which dock workers stated were owned by Kreasi. in the UK. Kreasi’s merbau flooring is sold in Semarang port,
Ms Titin explained how Kreasi buy about 3000 cubic Leroy Merlin, Europe’s second largest DIY and Java, Indonesia,
metres of merbau logs from Papua every 6-8 weeks, home improvement chain, which has stores across September 2005.
equivalent to around 24000 cubic metres per year. the continent.(33)
She admitted on camera that the company could not
know precisely where any of the company’s merbau
was harvested, or be sure it was legal – directly
contradicting claims Armstrong’s Chief Executive
later made to EIA.
EIA Investigator: ‘So when you buy the merbau on
the spot market, you won’t have any knowledge of
where it comes from at all?’
Ms Titin: ‘No. No.’
EIA Investigator: ‘So there is no way of proving it
was sustainable or legal even?’
Ms Titin: ‘No, no.’
When Ms Titin was asked about timber
certification, she said that though the company
could do it, there was no demand from clients.
© EIA / Telapak
5
Behind the Brand: Junckers
Danish company Junckers Industrier A/S is cent of Junckers’ merbau originated in Indonesia,
Europe’s largest manufacturer of solid hardwood rather than in Malaysia as Junckers had claimed
flooring, and Denmark’s biggest wood processing in response to requests for information from
company.(34) The company sold € 91 million of wood architects.(38) EIA/Telapak investigations have
flooring in 2004, a significant proportion of it since confirmed that Junckers’ Malaysian merbau
merbau.(35) Junckers’ publicity materials state that flooring suppliers actually source up to 90 per
the company ‘select wood only from carefully cent of their raw materials in Indonesia, that they
managed forests’.(36) In a letter to EIA/Telapak, have no idea of the precise origin, and that they
Below: Smuggled Junckers also said that the company ‘encourage have traded the wood illegally.(39)
Indonesian rough [their] suppliers to deliver environmentally sound In August 2005, EIA/Telapak investigators
sawn merbau at the raw materials.’(37) posing as traders visited Malaysian flooring
factory of Junckers’ The truth of such statements was originally manufacturer Kim Teck Lee Timber Flooring
Malaysian suppliers, called into question in 2004, when environmental Sdn.Bhd.(KTL), which manufactures all of
August 2005. group Greenpeace discovered that up to 30 per Junckers’ merbau flooring. KTL’s marketing
director Mr Lee Ah Keat revealed how the
company supplies about 23 000 square metres of
merbau flooring a month to Junckers, and that
eighty to ninety per cent of the merbau used
originates in Indonesia. Lee explained how he
sourced the Indonesian wood through agents in
the town of Surabaya who in turn purchase wood
on the open spot market.
It is practically impossible to know the precise
origin of timber purchased in this manner, though
one of Lee’s colleagues stated that the company
certainly buys merbau from the province of Papua.
When Lee was asked whether he could prove the
legality of his Indonesian merbau supplies, he would
not say he could strictly prove it, but instead
mentioned that most illegally traded merbau is
moved as logs on barges, whereas ‘… at least when
we bring in, it is in container loads…’, implying that
since it was not logs, it was legal. In fact Indonesia
had implemented a ban on exports of sawn timber
© EIA / Telapak
6
Behind the Brand: Junckers
August 2005.
© EIA / Telapak
7
Behind the Brand: Tarkett
© EIA / Telapak
8
Behind the Brand: Tarkett
Tarkett had also told them that ‘all Tarkett wood The logging
products are FSC certified’.(39) TEMENGGOR LAKE:
EIA/Telapak investigators, unable to find companies at
THE BOTTOMLESS
Tarkett flooring on sale with FSC labels, later Temenggor
telephoned Mr Bertelsen under another guise to ‘SUSTAINABLE‘ MERBAU
ask about current availability of FSC certified SUPPLY
are accused
flooring. Though he initially claimed that only Two of the largest merbau flooring
of illegally
‘certain ranges’ of their wood flooring were suppliers, Kahrs and Tarkett, have both cutting
available with seventy per cent FSC content, claimed to buy much of their merbau
Bertelsen eventually conceded that in fact Tarkett raw material from trees which lie merbau trees
do not currently stock or sell any FSC-certified underwater in an artificial lake created in protected
flooring products – though he claimed it had at as part of a hydroelectric project. They
give this as evidence that their merbau forests.
some point in the past. This directly contradicts
is legally sourced. The lake in question
the claims made to Allied Carpets and to
is at Temenggor in Peninsular Malaysia,
EIA/Telapak investigators posing as buyers, and it is true that in the past a small
proving that the company are deliberately quantity of old merbau logs were being
misleading customers over their environmental cut by divers at the lake each year. But
credentials. EIA/Telapak have forwarded the amount of timber involved is far too
information regarding the apparent misuse of the little to meet the combined demand of
FSC trademark by Tarkett to the relevant these two giant flooring suppliers, while
recent revelations have shown that even
authorities.(39)
some of this timber is likely to have
Mr Bertelsen’s claims in relation to the origin been illegally sourced.
of Tarkett’s merbau timber are also in doubt. It is
In April 2005 investigations by a
true that in the past there has been a small supply
Malaysian newspaper exposed how the
of merbau logs from underwater cutting of trees two companies licensed to log the
submerged when Temenggor lake was created as underwater trees at Temenggor were
part of a hydroelectric project in the 1970s. responsible for rampant illegal logging of
However, two months before Tarkett claimed to be merbau trees in the protected forests
using merbau from the lake all cutting there was adjacent to the lake.(48) Malaysian forestry
suspended indefinitely. The logging companies officials confirmed the claims, and
involved had been accused of illegally cutting subsequently refused to renew the
licenses of the two companies for logging
merbau trees in protected forests adjacent to the
at the lake.(49) The last of these licenses
lake (see box on right).(46) Ten months on, the expired at the end of May 2005 and
company is still selling merbau flooring, yet it Below: Illegally logged
since then no legal merbau has been
is unclear where it is getting its ‘controlled’ merbau tree,
sourced from the area.
timber supplies. Temenggor, Peninsular
Both Tarkett and Kahrs continue to sell
In January 2006 EIA wrote to Tarkett Malaysia, May 2005.
merbau flooring, though the only source
formally asking for information about the current of raw materials they can point to – Below left: FSC Chain
sourcing of its merbau timber. Two months later dubious as it already was – has now of Custody certificate
no reply had been received. Tarkett merbau wood dried up entirely. issued to Tarkett
flooring is marketed in branches of The Home in 2004.
Depot across the US, in branches of Allied
Carpets in the UK and in numerous other retail
outlets across Europe and North America.(47)
© The Star, Malaysia
9
Behind the Brand: Kahrs
10
Behind the Brand: Goodfellow
© EIA / Telapak
• Goodfellow is the largest hardwood flooring distributor in Canada, and currently
sources its solid merbau wood flooring from Indonesian company PT Seng Fong.
• After being exposed for selling suspicious merbau in February 2005, Goodfellow
committed to ensure its merbau was legally sourced.
• Seng Fong’s merbau is all from Indonesia’s Papua province, is bought through dealers
and cannot be traced to source or guaranteed as legal.
• Seng Fong admitted to paying bribes to officials in June 2005 to obtain 10 000 cubic
metres of seized illegal merbau logs at auction.
While the giant brand-name flooring companies recent record being for a shipment of twenty Seng Fong
featured above dominate the market in merbau tonnes which arrived in November 2005.(57) In
flooring in Europe and North America, there are addition to Goodfellow, Seng Fong also stated that admitted to
numerous other large companies engaged in the the company supplies merbau flooring for French paying
trade. One such company, Canadian firm flooring brand Soboplac. Soboplac’s merbau
Goodfellow Inc., were previously exposed by flooring is marketed in Point P stores in France.(58)
bribes to
EIA/Telapak for selling merbau flooring from a obtain
Chinese supplier which was buying merbau logs of seized
dubious and uncertain origin.(54) The company
responded in April 2005, stating that it would seek merbau logs
assurances from its suppliers that the merbau used at auction.
was ‘logged legally and ethically’.(55) Goodfellow
also publicly committed to ‘market products only
where there is a complete and documented legal
chain of custody’.
US import records show that Goodfellow has
since moved the sourcing of its merbau flooring to
an Indonesian company, PT Seng Fong Mouldings
Perkasa.(56) In August 2005 EIA/Telapak
undercover investigators visited Seng Fong’s large
factory in Java. The owner, Mr Goh, and his
colleague Ms Lin explained that, far from having
a legal chain of custody, Seng Fong’s merbau is
bought on the spot market from traders who bring
© Sam Lawson / EIA / Telapak
was good business, since the bribes had ensured Indonesia, August
the agreed price of the logs was only $90 per 2005.
cubic metre – less than half their true value. Left: Papuan merbau
Since EIA/Telapak’s visit to Seng Fong, the logs in the yard of
company has continued to supply shipments of Seng Fong, Indonesia,
solid merbau wood flooring to Goodfellow, the most August 2005.
11
Behind the Brand: Summary Tables
FLOORING BRAND
Table: Summary of case study findings
Bruce
Junckers Tarkett Kahrs Goodfellow
(Armstrong)
Use merbau timber in their wood flooring which comes from Indonesian Papua • • ? ? •
Do not know the precise forest source of all their merbau and cannot show it was
legally sourced • • ? • •
Provide false or misleading assurances to customers regarding the environmental
credentials of their flooring • • • • •
Have used merbau sourced from companies in Malaysia which have
recently been accused of cutting merbau trees illegally in protected forests • •
Supplier admits paying bribes to buy seized illegal merbau logs at auction
•
The Home Depot The Home Depot claims to ‘trace the origin of each The Home Depot market merbau flooring by Bruce (Armstrong).
The world’s largest home and every wood product on our shelves’ and ‘know Bruce’s supplier Kreasi buys all it’s merbau from Papua, where
improvement chain, with item by item . . . where our wood products are illegal logging is rampant. The company admits that merbau trees
over 2000 stores. harvested’.(59) The company’s wood purchasing policy in Papua are getting scarcer because there is no replanting, and
also stated in 1999 that it would ‘eliminate wood confessed that it did not know where in Papua its merbau comes
purchases from endangered regions of the world by from or even if it is legal (see case study on page 4).
the end of 2002 . . .’(60)
Lowe’s Lowe’s claims to be ‘concerned ’ about the protection Lowe’s markets Bruce (Armstrong) merbau flooring in dedicated in-
The world’s second largest of endangered forests, and committed to working with store displays. Bruce’s supplier Kreasi buys all it’s merbau from
home improvement chain, suppliers to ensure this protection.(61) Papua, where illegal logging is rampant. The company admits that
with over 1200 stores in merbau trees in Papua are getting scarcer because there is no
North America. replanting, and confessed that it did not know where in Papua its
merbau comes from or even if it is legal (see case study on page 4).
John Lewis John Lewis’ Responsible Sourcing Code states: John Lewis markets merbau flooring by Junckers. Junckers’
27 branches in the UK, & ‘Suppliers shall seek to make continuous supplier (KTL) buys merbau from Papua, did not know the origin
recently voted UK’s improvements in their environmental performance of its merbau, cannot prove it is legal, and is pushed by
Favorite Retailer. and, as a minimum, comply with the requirements of Junckers to ‘take risks’ to meet demand. Illegally exported
local and international laws and regulations.’(62) Indonesian sawn merbau was seen in KTL’s yards (see case study
on page 6).
Travis Perkins In 2004 Travis Perkins pledged to ‘eliminate . . . timber Travis Perkins markets Junckers merbau flooring. Junckers’
With 750 stores, Travis and forest products that originate from illegally supplier (KTL) buys merbau from Papua, did not know the origin
Perkins is probably the harvested timber’,(63) and to avoid Indonesian timber of its merbau, cannot prove it is legal, and is pushed by
UK’s largest chain of products until legality could be guaranteed. Junckers to ‘take risks’ to meet demand. Illegally exported
timber and builder’s Indonesian sawn merbau was seen in KTL’s yards (see case study
merchants. on page 6).
Jewson Jewson’s Timber Procurement Policy states: ‘We seek Jewson markets Bruce (Armstrong) merbau flooring in dedicated
With over 450 stores, to obtain clear evidence of good forest management in-store displays. Bruce’s supplier Kreasi buys all it’s merbau from
Jewson is one of the UK’s practice at the original source.’(64) Papua, where illegal logging is rampant. The company admits that
leading timber and merbau trees in Papua are getting scarcer because there is no
builders merchants. replanting, and confessed that it did not know where in Papua its
merbau comes from or even if it is legal (see case study on page 4).
Leroy Merlin Leroy Merlin is a signatory of Club Proforet, the French Leroy Merlin markets merbau flooring produced by Indonesian
Europe’s second biggest member organization of WWF’s Global Forest & Trade company Tanjung Kreasi. All of Kreasi’s merbau is from Papua,
DIY chain. Focused in Network (GFTN).(65) where illegal logging is rampant. The company was unable to
Europe, but with 298 say where in Papua its merbau comes from or if it was legally
outlets worldwide. sourced (see case study on page 4).
12
Conclusions and Recommendations
13
References
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