White Papers PROVE IT OR ELSE! Traceability | Page 5

PROVE IT OR ELSE !
A ComTechAdvisory Whitepaper
Method Description Detail Example Product Segregation
Certified materials and products are physically separated from non-certified materials and products at each step in the supply chain .
Bulk Commodities – Certified and non-certified materials are separated but mixing from different producers of certified materials is allowed . All producers have to comply with certification standards .
Bananas – Fairtrade bananas have achieved the ability to trace back to a specific producer .
Identity Preservation – Certified and non-certified products cannot be mixed and certified products may not be mixed either . This affords traceability to a specific producer , farm , or forest
Mass Balance
Certified and non-certified products may be mixed however , the exact volumes of certified materials are tracked such that an equivalent volume of the product can be sold as certified
Commonly used for products where segregation is difficult such as Coffee , Cocoa , Sugar , and Tea .
Timber – The complex nature of the production process at paper mills makes segregation almost impossible .
Cocoa – Complex supply chain means that segregation is very expensive .
Book and Claim
A company can obtain sustainability certificates for the volume of certified materials put into the system . The certificates can be bought and sold meaning that sustainability claims can be made via the existence of a certificate even though the actual product may not have been certified .
In this system , certified and non-certified products are mixed and there is no requirement to track them . Rather , the certificates issued and traded are tracked .
CO2 Emissions and Green Power – the trading of certificates allows retailers to offer green power at a premium despite not knowing if the electrons it supplies were certified or not so long as it has purchased the certificates needed to do so .
Table 2
The importance of traceability has now grown to the point that it is essential in many commodities and products as ,
/ Many shippers and / or important consumers now have their own requirements , standards and mandates including for example , tire manufacturers ,
/ In areas like biomass and green energy , subsidies are only available where adherence to environmental standards can be proven ,
/ Industry associations , consumer bodies and intra-government organizations are developing an array of standards and requirements ,
/ Brand value protection demands it ,
/ Consumers demand it and are willing to pay a premium .
Traceability is rapidly becoming a key requirement and constraint in many industries where it is seen as an important operational risk item that needs to be effectively managed .
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