Supporting corporate due diligence through chain of custody systems

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The new playing field
The challenge of mass balance models
A range of options to choose

Introduction

Project details

Project title: Control mechanisms for blended materials

Project lead: Better Cotton

Project partners: Responsible Sourcing Network

Duration: October 2021 - April 2022

Contact: Josh Taylor - josh.taylor@bettercotton.org

Co-funded by the Swiss State Secretariat for Economic Affairs SECO, through the ISEAL Innovations Fund

The new playing field

Sustainability systems like Better Cotton have been working closely with businesses to drive the adoption of sustainable production practices in different sectors. With new corporate due diligence requirements becoming mandatory, sustainability systems can be equally important in supporting companies identify, prevent and mitigate adverse impacts in their supply chains. Chain of custody systems that provide supply chain transparency and reduce risk are key to the success of this partnership.

The challenge of mass balance models

Many sustainability systems, including Better Cotton's, have chain of custody systems based on mass balance models because they are an effective and inexpensive way to facilitate demand for more sustainably produced commodities in complex supply chains. Mass balance models, however, can make full physical traceability difficult. That is why many ISEAL members are exploring new technologies and controls that add to their chain of custody systems, especially where mass balance is still the only viable option.

A range of options to choose

This project will explore the various ways chain of custody models can support corporate due diligence efforts, and produce a decision-making framework to support the identification of context-appropriate control mechanisms for standards systems. This practical tool will be relevant to all ISEAL members operating mass balance models, whether in agriculture, textiles or aquaculture. In addition, the project will explore how the application of mass balance at different nodes in the supply chain can support such material input controls, using cotton as a case study.