Public consultation on Enquiry Drafts of revised PEFC International Standards for Chain of Custody and Trademark Rules

ED PEFC ST 2002:201X, Chain of Custody of Forest and Tree Based Products - Requirements

6 Chain of custody methods

6.1 General

6.1.1 There are three methods to implement the PEFC chain of custody, namely the physical separation method, the percentage method and the credit method. Depending on the nature of material flows and processes the organisation shall choose the appropriate method.

6.1.2 The organisation shall implement the chosen chain of custody method(s) of this standard for specific PEFC product groups.

6.1.3 PEFC Product groups shall be established for products with equivalent input material, with the same measurement unit or units that can be converted into a single measurement unit.

6.1.4 The organisation shall only use PEFC certified material and PEFC controlled material as input for PEFC product groups

6.2 Physical separation method

6.2.1 The organisation applying the physical separation method shall ensure that material with different material categories and different certified content are kept separate  or clearly identifiable at all stages of the production or trading process.

Note: Physical separation can be achieved by any means ensuring that material category and certified content can be identified, for example, through separate storage, marking, distinguishing product characteristics or production time.

6.2.2 Where material with different certified content is used as input in the same product group the organisation shall use the lowest certified content of the input as certified content of the output.

Example: An organisation using 100% PEFC Certified, 75% PEFC Certified and 70% PEFC Certified material as input in the same product group under the physical separation method can claim the output as 70% PEFC Certified.

6.2.2.1 Where certified material and PEFC controlled material is used as input in the same product group under the physical separation method, the organisation shall claim the output as PEFC controlled material.

6.3 Percentage method

6.3.1 The percentage method may be implemented to calculate the certified content of product groups for which certified and controlled material were used as input material.

6.3.2 The percentage method shall not be applied by organisations trading material without physical possession of input material in PEFC product groups, such as brokers.

6.3.3 Calculation of certified content

6.3.3.1 The organisation shall calculate the certified content separately for each product group and for a specific claim period according to the following formula:

Cc [%] = (Vc/(Vc+Vcm))x100 (Cc: certified content; Vc: volume of PEFC certified material; Vcm: volume of PEFC controlled material)

Note:       Neutral material is not considered in the calculation of the certified content.  

6.3.3.2 The organisation shall calculate the certified content based on a single measurement unit used for all material covered by the calculation. In cases of conversion to a single measurement unit for calculation purposes, the organisation shall only use generally recognised conversion ratios and methods. If a suitable generally recognised conversion ratio does not exist, the organisation shall define and use a reasonable and credible conversion ratio.

6.3.3.3 If input material/products include only a proportion of PEFC certified material, then only the quantity corresponding to the certified content shall enter the calculation formula as PEFC certified material. The rest of the material shall enter the calculation as PEFC controlled material.

Example: 1t of 70% PEFC Certified material and 1t of 100% PEFC Certified material are used as input. Using the formula under 6.3.3.1 the certified content is Cc[%]= ((700kg+1000kg)/((700+1000)+300))x100 = (1700/2000)x100 = 85%

6.3.3.4 The certified content calculated for a product group shall be used as percentage in the PEFC claim “X% PEFC Certified”.

Example: If the certified content of a product group has been calculated  as being 54 % for a specific claim period, all products covered by the product group can, during this claim period, be sold/transferred as PEFC certified products with the PEFC claim “54 % PEFC Certified”.

Note:      This standard does not define a minimum threshold for the certified content that needs to be met in order to communicate the certified content of a PEFC certified product with a “X% PEFC Certified claim”. However, minimum thresholds for the use of the PEFC trademarks on-product are defined in the PEFC Trademark Rules, PEFC ST 2001.

6.3.4 The organisation may apply the percentage method as rolling percentage.

6.3.5 The organisation applying rolling percentage shall calculate the certified content of a product group and claim period based on material procured during an input period preceding the claim period. The claim period, in the case of rolling percentage, shall not exceed 3 months and the input period shall not exceed 12 months.

Example: An organisation which has chosen 3 months claim period and 12 months input period calculates the certified content for the coming three months based on the input material procured in the previous 12 months.

6.4 Credit method

6.4.1 The credit method may be implemented to transfer volume credits gained from the input of certified material to controlled material within the same PEFC product group.

6.4.2 The credit method shall not be applied by organisations trading material without physical possession of input material in PEFC product groups, such as brokers.

6.4.3 The organisation shall create and manage a credit account for credits gained from certified input material. The credit shall be calculated in a single measurement unit. It may be required to define conversion factor(s) for the conversion of the measurement unit(s) of the input components to the output (product).

6.4.4 The total quantity of credits accumulated in the credit account shall not exceed the sum of credits entered into the credit account during the last 24 months. The 24 months maximum period can be extended, where the organisation can demonstrate that the average production period of the product in question is longer than 24 months.

Example: If the average production period of a product (including maturing, for example) is 36 months, the organisation can extend the 24 months maximum period for the accumulation of credits to 36 months.

6.4.5 The organisation shall apply the credit method for a single claim. The organisation receiving a delivery of material with a PEFC claim and a claim against another certification scheme, shall either use it as a combined credit covering both claims or shall only use one of the received claims for calculating the volume credits.

Example:       An organisation receiving a delivery of material with two claims relating to two certification schemes (e.g. “x% PEFC Certified” and “FSC certified”) either establishes a credit account for the multiple claim (PEFC/FSC certified) or decides, which single claim (either PEFC or FSC) will be entered into the respective volume credit account.

6.4.6 The organisation shall calculate the volume credits using either:

a) certification percentage and volume of output products (clause 4.7) or

b) input material and input/output ratio (clause 4.8).

6.4.7 The organisation applying the certification percentage shall calculate the volume credits by multiplying the volume of output products of the claim period by the certified percentage for the relevant claim period.

Example: If the certified percentage for the product group of the specific claim period, which consists of 100 tonnes of output products, is 54%, the organisation achieves volume credits equal to 54 tonnes (100*0.54) of the output products.

6.4.8 The organisation that can demonstrate a verifiable ratio between the input material and output products, may calculate the volume credits directly from input certified material by multiplying the volume of input certified material by the input/output ratio.

Example: If the volume of input certified material is 70 m3 (e.g. 100 m3 with claim “70% PEFC Certified”) and input/output ratio is 0.60 (e.g. 1 m3 of roundwood results in 0.60 m3 of sawnwood), the organisation acquires volume credits equal to 42 m3 of sawnwood.

6.4.9 The organisation shall distribute the volume credits from the credit account to the output products covered by the credit account. The volume credits shall be distributed to the output products in a way that the certified products will be considered as containing 100% of certified material or as containing less than 100% certified material and meeting the organisation’s own threshold. The result of the volume of certified products multiplied by the output percentage of certified material included in the certified products shall be equal to the distributed volume credits withdrawn from the credit account.

Example: The organisation can use 7 units of credits to sell 7 units as 100% PEFC Certified, or to sell 10 units as 70% PEFC Certified.