Multisite mass balance- enabling scale and sustainability

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

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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

Selected examples in various industries

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

How it works for chemical recycling

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