Timber Tracking Reducing Complexity of Due Diligence by using Blockchain Technology (Position Paper) Boris D¨ udder and Omri Ross boris.d@di.ku.dk, o.ross@statslab.cam.ac.uk Department of Computer Science, University of Copenhagen, Denmark Abstract. Managing and verifying forest products in a value chain is often reliant on easily manipulated document or digital tracking meth- ods – Chain of Custody Systems. We aim to create a new means of tracking timber by developing a tamper proof digital system based on Blockchain technology. Blockchain will be combined with new digital pro- tocols for physical verification and authentication. Deliverables include online traceability system, and procedures for entering and verifying data inputs. Certification schemes and governments gain increased legitimacy from tamper-proof means to comply with timber trade requirements. Global companies gain from efficient traceability; society at large ben- efits from increased tax revenues, anti-corruption, and environmental benefits from sustainable forestry. We think this potential collaboration between government and industry can help simplify a variety of current due diligence processes, in this paper we focus on timber tracking. 1 Introduction Trade in illegally harvested timber is highly lucrative and estimated to be worth between USD 51–152 billion annually. This results in the loss of crucial resources for developing countries, while damaging their economies, public trust, and in- stitutional structures [8]. From 2006 to 2013, the import volume of illegal wood products by China, India, and Vietnam increased by over 50 percent [7]. This problem resembles the case for blood diamonds that has recently tracked by the everledger using a blockchain system that currently covers over one million registered diamonds [5]. Companies in many regions are required (and interested) to ensure the us- age of commodities from that follow legal and sustainable land management practices, and have installed procurement practices to enable sustainable values. Growing regulations such as the European Timber Regulation (EUTR) requires European companies to conduct due diligence and ensure that imported timber is not illegally sourced. One such solution is to use independently certified “eco- labels” that verify legality, environmental and social sustainability of products. However, these practices rely on a paper-based analog “chain of custody” (COC)