Chain of custody (CoC) and traceability are big news right now. But are we all speaking the same language?

We’re updating our CoC models and definitions guidance and we would value your input. Our public consultation is now open.

What is chain of custody, and why is it important?

A CoC system is among the key elements of most sustainability systems. It enables the transfer and validation of claims that can be made about approved or certified products.

Sustainability systems use a range of CoC models. Each allows for different types of claims, depending on the relationships and characteristics the CoC model tracks.

Some models underpin our ability to pinpoint where a certified product was grown. Others give us confidence there is certified physical content within a product.

Yet more provide assurance that a corresponding volume of certified material was produced and entered the supply chain. All are valid approaches, though not all are suited to every supply chain, commodity and context.

We developed the ISEAL Chain of Custody Models and Definitions Guidance in 2016. It provides a foundational reference for matters relating to CoC, offering clear definitions of various CoC models for shared stakeholder understanding.

Our guidance was well received. It has helped many stakeholders understand the at times perplexing world of CoC.

Why the revision?

Supply chain management has evolved significantly since the original guidance, driven by several key trends:

• Regulatory: New regulations, such as the EU Deforestation Regulation (EUDR), the EU Corporate Sustainability Due Diligence Directive (CSDDD), and the EU Corporate Sustainability Reporting Directive (CSRD) are compelling companies to obtain more detailed information about the origins and sustainability performance of materials they source.
• Technological: Traceability innovations including blockchain systems, satellite monitoring and machine learning have enhanced our collective ability to capture and verify supply chain data.
• Diverse mass balance: To meet growing demand for certified commodities, a range of mass balance CoC systems have been developed and scaled, each tailored to specific supply chains and objectives.
• Corporate climate action: Increasingly, companies are focusing on Scope 3 greenhouse gas (GHG) emissions (those associated with their supply chain). Companies are seeking ways to leverage sustainability systems for accurate reporting and to incentivise progress.

Given this dynamic context, we want to ensure the language and definitions we provide are up to date and rich enough to support stakeholders in their evolving discussions on CoC.

Revision objectives  

• Provide clear, consistent and updated definitions of CoC models, applicable across different sectors and commodities.
• Add the following models: Controlled Blending and Controlled Mass Balance.
• Introduce readers to the key concepts underpinning CoC, including attribution and volume reconciliation.
• Develop a suite of diagrams, infographics and supplementary content.

Our consultation process

We’re sharing the new draft for public consultation because we want it to be as relevant as possible across different sectors, commodities and use cases. To do this, we need your input.

We will open the consultation 11 November 2024. Find us on X and LinkedIn.

We will be using this consultation page to share the draft and related resources.

For more information on the new guide or the revision process, please contact: Josh Taylor, Traceability Manager, josh@isealalliance.org