Demands by customers for environmentally better products produced under economically sound conditions are increasing steadily. Wood has a lower environmental impact than most of the competing materials used in the building sector. However, for reliable customer information, environmental impact verification methods for timber-frame houses are needed. The Forest Stewardship Council (FSC) is a forest certification scheme operating at a global level. It relies upon a performance-based standard that includes specific performance measures that can be used as a basis for product labelling; minimizing the environmental impact is covered by one of the FSC's ten principles. A case study of a customized timber-frame house illustrates the possibility of using the FSC percentage-based volume criteria as an environmental labelling, ensuring criteria that the wood products come from well-managed forests. The case study demonstrates not only the simplicity, but also the drawbacks of applying the FSC labelling to complex wood products such as houses, and an analysis of a proposed model gives insights into how the FSC labelling can be extended for houses by incorporating building functional and service-life criteria.