multisite mass balance- enabling scale and sustainability
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Multisite mass balance- enabling scale and sustainability
NIST mass balance workshopMay 4, 2021
Jason Pierce
Sometimes recycled materials are present at one site but needed at a different site within the same company
2
Multisite mass balance allows mass balance credits to transfer digitally rather than requiring physical movement of materials between a company’s sites for the purpose of
sustainably moving credits within the company’s mass balance system boundary
Is shipping the best option?
Site 1 Site 2Sites are inter-connected by logistic systems
What is multisite mass balance?
Multisite mass balance is an option to coordinate management of mass balance for multiple sites under the ownership and control of a single organization according to a set of qualifying conditions
Site 1
Site 2OR…
Site 1
Site 2
Transfer credits
Expand the system
One mass balance boundary including multiple sites
Site 1
Site 2
Versus…Multisite approach
Move materials
Separate mass balance for each site with ability to transfer credits
Single-site approach
System boundary
ISO 22095 chain-of-custody definitions
• Per ISO definitions1, organizations can manage mass balance for• Continuous processes• A single site• Multiple sites (within a determined geographical area & time frame)
• Via either a credit-based or rolling average mass balance method2
• ISO is working towards standardized mass balance details within PC 308
1 ISO 22095:2020 section 5.4.2.12 Section 5.4.2.2
Multisite versus group certification
Multisite mass balance• Multiple sites under common ownership
of a single organization
Group certification• Small companies join to become
certified as a group• Sites can be under separate ownership• Mass balance managed by a
designated central office• Enables participation when otherwise
infeasible due to lack of resources
Related concept, but not the focus for today
Multisite approach = more plastics recycled sooner
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Maximize scale while optimizing sustainability
What it provides
• Faster & bigger scale through peak use of existing infrastructure starting NOW
• Stimulated market demand and collection infrastructure for advanced recycled plastics
• Invest smarter to increase recycling capacity (rather than in physical connectivity)
What it avoids
• Avoids emissions and costs due to transportation of the equivalent materials between sites
• Avoids inefficient capital investment in redundant sub-scale assets
Terminology varies among standards
Qualified credit transfer
Multisite credit transferGroup level mass balance
Multisite mass balance
Organizational system boundary
Geographical credit transfer
Multisite mass balance is currently implemented in multiple 3rd party certification systems across diverse industries
Agricultural products
Biofuels Coffee
Mass balance has been trusted in many industries for decades
Palm oil Soy Sugar
Cotton
TimberTea
Cocoa
Mass balance is new to circular economy because chemical recycling is providing new solutions.
Mass balance is needed in all these industries because its not practical to keep sustainable materials physically segregated
Fair Trade
• Certified inputs and outputs are delivered to, processed by, and sold from multiple sites under one company
• Inputs do not need to be delivered to and processed at the same site where certified output is produced
• Company is audited on total amount bought and sold from all included sites
Source: Fair Trade Allowance for use of Mass Balance- STD_POL_MassBalance_EN_1.0.0.pdf (fairtradecertified.org)
Fair Trade Certified™ represents products empowering responsible
farmers, improving lives, protecting lands and waterways in
45 countries since 1998.
Why?Overcome geographical limits | Increased scale | Maximize benefits for farmers
Sugar mill #1
Sugar mill #2Satisfy local demand without shipping from Mill #1
Forest Stewardship Council (FSC)
• Multisite chain of custody certification: Designed for larger companies Administered by a central office. Any site can invoice
certified products.
• Eligibility requirements: All sites have common ownership under a certified central
organization; OR All participating sites have legal/contractual relationship
AND central management system (sales, operations, etc)
• Geographically restricted to Eurozone or within a country
Source: FSC-STD-40-003 V2-1 “Chain of Custody Certification of Multiple Sites” https://ic.fsc.org/en/document-center
FSC is a highly regarded chain of
custody certification for responsibly sourced forest
materials, since 1993
Sawmill #1
Sawmill #2
Efficiently allocate content where most needed in the market
Why? Reduce cost and complexity
ISCC PLUS
• Mass balances are strictly site specific• Credits can transfer between site mass
balances under the following conditions:• Supplier and recipient part of same company• Sites located within one country or neighboring
inland countries• Applicable only to same kind of product• Both sites certified under ISCC PLUS using same
certification body
Source: ISCC PLUS system document v3.2 https://www.iscc-system.org/wp-content/uploads/2020/01/ISCC-PLUS-System-Document_V3.2.pdf
Circular, bio
Site 1
Site 2
Transfer credits
Why? Avoid unnecessary transportation to enable greater efficiency & scale
ISCC PLUS is a global chain of
custody certification for recycled and
biobased materials, with over 600 system users
Use of multisite is disclosed on Sustainability Declaration paperwork for products
UL 2809 Recycled Content Validation
• Qualified credit transfers under limited conditions:• Group of site which are geographically distant and
exchange feedstock through either pipelines, rail or truck• Credit donor and acceptor under same management• Substance or product taking credit must be same• Use of credit transfer must demonstrate sustainability or
carbon benefit as compared to physical transfer
Circular
Site 1
Site 2
Transfer credits
Why? Qualified credit transfers can demonstrate significant sustainability benefits
Source: Environmental Claim Validation Procedure for Recycled Content Edition 5 https://www.shopulstandards.com/Catalog.aspx
UL 2809 authenticates post-& pre-consumer,
closed loop or total recycled content of products. UL is one of the most trusted names in 3rd party product safety and
standards
Credit-based mass balance in chemical recycling: Single-site
Credits are created when waste plastic is consumed in recycling operation Credits are de-coupled and then re-joined with physical materials within the system boundary Credit balance is managed as a digital inventory Must be zero or greater credit inventory at end of each mass balance reconciliation period
Incoming waste plastics Certified products with allocated recycled content
Credit bank (digital inventory)
Make credits
Consume credits
Conversion factors
System boundary
Processing operationsConventional inputs Conventional products
Conversion factors
Multisite with expanded system boundary System boundary can be drawn around an entire organization rather than a single site or unit Analogous to Fair Trade and FSC approach, but less common for chemical recycling certification
Credit bank (digital inventory)
Make credits
System boundary
Site 1
Site 2Incoming waste plastics
Conventional inputs
Certified products with allocated recycled content
Consume credits
Conventional products
Multisite with credit transfersUsed in systems such as ISCC PLUS and UL 2809. Credit transfers are reported.
Incoming waste plastics Certified products with allocated recycled contentCredit bank (site 1)Make
creditsConsume
credits
System boundary
Site 1: Processing operationsConventional inputs Conventional products
Incoming waste plastics Certified products with allocated recycled content
Credit bank (site 2)Make credits
Consume credits
Site 2: Processing operationsConventional inputs Conventional products
Qualified credit transfers between site material balances for same material
Multisite mass balance is not book & claim
Book & claim• Credits are traded and sold independently of physical materials• Sustainability characteristics are completely disconnected from physical flow of materials
Multisite mass balance• Credits are NOT sold separately from materials• ISO definition for mass balance includes an option for multiple sites• Mass balance credits are both generated and allocated to products within a single organization• Only physical products with sustainability characteristics are moving through supply chain• Currently implemented as an option in mass balance certifications across diverse industries
Typical concerns about multisite mass balance1.) Some argue it is book & claim or insufficiently traceable2.) Content can be fully allocated not physical
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