When we deal with ISCC certification and the chain of custody, We always have to mention the concept of Traceability. Here in this article we will develop some concepts related to the degree of tracking of each element of the supply chain and some of the documentation that is necessary to obtain it..
Each element of a sustainable materials supply chain must provide evidence of compliance with sustainability criteria and reduction of greenhouse gas emissions (GEE) of the Renewable Energy Directive (EU) 2018/20011 (often referred to as RED II). This is achieved through individual certification of each element of the supply chain. To ensure that all relevant product properties and related sustainability characteristics are transmitted through the supply chain to the fuel supplier (that is, an entity that provides sustainable fuel to the market), adequate traceability and chain of custody measures are required.
According to the International Organization for Standardization (ISO), The term “traceability” describes the ability to identify and trace the origin, the processing history, the distribution and tracking of products and materials across supply chains. Traceability includes the requirement to be able to physically track products and materials along supply chains, but also knowing what products they are made from and how they were processed.
“Chain of custody” is a general term for the transfer process, monitoring and controlling inputs and outputs and related specific information as they move through the supply chain. This provides credibility that a particular batch of material or product is associated with a set of specific characteristics (for example, in relation to sustainability and GHG savings) and that information about the specific characteristics linked to the material or product is transferred, monitored and controlled throughout supply. chain.
Different chain of custody methods are available for handling sustainable materials along the supply chain, including the two methods that are applicable under this standard: Product segregation and mass balance. A third method, known as book and claim, not allowed.
The combination of traceability and chain of custody requirements ensures that the physical flow of materials can be tracked throughout the supply chain, which guarantees the integrity of sustainability statements. The transfer of sustainability characteristics along the supply chain must always be accompanied by a physical transfer of material.
This also ensures that sustainability characteristics and GHG emission reductions can be attributed to individual physical shipments of materials and that the quantity of sustainable materials and products withdrawn at any stage of the supply chain does not exceed the quantity of sustainable materials added.. The term remittance, or “batch”, describes a specific quantity of material with the same sustainability characteristics and reduction of GHG emissions. to follow, the term “batch” will be used uniformly.
Under this standard, compliance with RED II sustainability and greenhouse gas emission reduction criteria can be demonstrated for biofuels, bioliquids, biomass fuels, renewable liquid and gaseous transport fuels of non-biological origin and recycled carbon fuels. to follow, the term “sustainable fuel” will be used uniformly to cover the above-mentioned types of fuels.
Requirements for traceability
According to RED II, economic operators along the physical supply chain must demonstrate that RED II sustainability and GHG emission reduction criteria have been met. Relevant sustainability criteria under RED II include description of raw materials and country of origin of raw materials, greenhouse gas emissions (GEE) related to the materials and proof that the RED II land-related sustainability criteria for the production of the raw materials have been met. This information is hereafter referred to collectively as “sustainability characteristics”.
According to the ISCC, the following elements of the supply chain are subject to certification: farms and plantations, points of origin, first collection points, central offices, collection points, merchants, warehouses and processing units. Transport and any modes of transport (for example, road, railway, air, river or sea) are not subject to certification. All relevant information regarding the transport of sustainable materials (e.g. delivery documents, means and distances of transport, and respective greenhouse gas emissions) are covered by the certification of the aforementioned economic operators. A valid certificate provides evidence that the certified element complies with the RED II criteria and the ISCC standard.
Evidence of the sustainability characteristics of a sustainable material is documented and routed through the supply chain through the use of “Sustainability Declarations”. A ‘Declaration of Sustainability’ is a delivery document containing relevant information about the sustainable material that must be issued by the supplier for each delivery of sustainable material. Producers and suppliers of sustainable fuels often use the term “proof of sustainability” (PoS)” when referring to Sustainability Declarations. In the remainder of this document, the term “Sustainability Statement” is used uniformly.
Supply chain elements that are not certified cannot treat materials as sustainable and are not authorized to issue Sustainability Declarations in accordance with this standard. Recipients of sustainable material must ensure that their supplier was certified on the date of physical shipment of the material. All valid certificates are displayed on the ISCC website. In case of doubt, ISCC should be contacted to check the validity of the certificates..
Self-declarations are forms that must be completed and signed by farms or plantations and points of origin for waste and residual materials before they can deliver sustainable material into the supply chain.. This is a mandatory requirement for farms/plantations and points of origin that are not individually certified.
Within the scope of ISCC, identification and tracing of origin, the processing history, distribution and location of materials can be done “step by step” throughout the entire supply chain. The information provided in Sustainability Declarations that pass through the supply chain is crucial to this approach.
Procedures, Reports and Documentation
The company's internal procedures with respect to the relevant requirements in accordance with this standard must be documented in writing. This documentation must contain at least the following elements:
1 Description of the company's internal material flows
2 Organizational structure, responsibilities and authorities regarding sustainability, GHG and chain of custody requirements
3 Procedures related to traceability and chain of custody in relation to all requirements of this standard
The company must establish and maintain a reporting system that meets requirements and operates effectively and efficiently. Furthermore, must ensure that relevant records are maintained for all critical control points.
These records must always guarantee a clear link between products, product flow and documentation. Companies must provide, not minimal, the following records:
1 Plant operating license, including layout plan and storage facility capacities
2 Entry and exit records of sustainable products (for example, weighbridge tickets, bills of lading and sustainability declarations)
3 Records of any internal processing of sustainable products, including respective yields/conversion factors
4 Records of periodic reports on initial and final stock for input and output of sustainable and non-sustainable material
5 List and contracts with all suppliers (including farms/plantations, points of origin and certified suppliers) and recipients of sustainable material
6 List and contracts with subcontractors and service providers related to sustainable products
7 Records relating to the transfer of data to the certification system chosen by this company or to the responsible competent public authority or certification body that conducted the audit against this standard
8 Records relating to the transfer of data to and from any sustainability databases used
9 Internal audit records, non-conformities with this standard, related corrective actions and/or discrepancies identified within the documentation
10 Records of other certification standards with comparable scopes used, non-conformities with these standards and related corrective actions and, if applicable, information about withdrawn or suspended certificates
11 A signed version of the current ISCC Terms of Use
All companies must operate a periodic reporting system (for example, monthly and annual/calendar year) relative to quantities received and storage levels at the beginning and end of the period, and the quantities that come out of sustainable and non-sustainable products. Companies are obliged to immediately inform their certification body if any discrepancies in documentation occur, reports and material flow.
All companies that handle and supply sustainable products to other companies are required to provide their recipients with all sustainability and GHG documents and information required under this standard..
Furthermore, the company must maintain all relevant records and documents (on paper and/or electronically) for at least five years. Documents and information must be treated as confidential and must not be made available to unauthorized third parties.
The company must identify, provide and maintain the infrastructure and technical facilities necessary to ensure the effective implementation and maintenance of the requirements of this standard.
The company must carry out internal audits at least once a year covering all relevant requirements of this standard and establish corrective and preventive measures, if necessary. Relevant service providers and subcontractors must be taken into account in internal audits.
The internal audit report must be reviewed by company management at least once a year.
Discover more here:
ISCC and the Chain of Custody – biO3 (bio3consultoria.com.br)