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1 © ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited. ISCC: Supporting Sustainable and Deforestation-free Supply Chains for Bio-based Plastics Dr. Peter Hawighorst, ISCC System GmbH Forum for Fossil-free plastics, Oslo, Norway, 10 January 2019

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Page 1: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

1© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

ISCC: Supporting Sustainable and

Deforestation-free Supply Chains for Bio-based Plastics

Dr. Peter Hawighorst, ISCC System GmbH

Forum for Fossil-free plastics, Oslo, Norway, 10 January 2019

Page 2: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

2© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

Who is ISCC? What are the (future)

challenges to verify sustainable

criteria?

Why are companies using

ISCC certification?

Page 3: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

3© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

ISCC is a sustainability certification schemes applied on a global scale. ISCC

system users are located in more than 100 countries worldwide

Page 4: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

4© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

More than 20,000 certificates have been issued since 2010

System users in 100+ countries

20,000+ certificates

3,000+system users

32 certification bodies

360+ISCC trained auditors

Training Program(68 Trainings so far for

auditors and system users)

8 Voluntary

add-onsto address specific customer

requirements

Stakeholder dialogue:

112 ISCC Association

members

Discussion platform with

4 Regional

and 2 Technical

Committees

Integrity Program3 auditors

Innovative tools and

procedures to facilitate

audits

Use remote sensing to

verify land use

change

Page 6: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

6© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

ISCC is leader in the certification of all kinds of agricultural and forestry

feedstocks …

Shea nuts

Cereals

Soy Sunflower

Wood

Sugarcane Sugarbeet

Canola

Corn

Palm

CamelinaCotton

Agricultural and forestry feedstocks

Page 7: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

7© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

… as well as wastes and residues to support the circular economy and renewable

non-bio materials

CO2

Tall oil

UCO Forestry residues

Municipal solid waste

Power-to-Energy Husks

Landfill gas

End-of-life tires

Power-to-Gas

StrawCrude glycerin

Waste and processing residuesRenewable non-bio

feedstocks:

Forestry / agricultural crop

residue

Page 8: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

8© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

Each element of the supply chain becomes individually ISCC certified. Certificates

are site specific and valid for one year

First gathering

pointFarm/Plantation Processing unit Refinery Trader

ISCC sustainability

requirements principles 1-6Traceability and GHG emissions

Traceability and GHG emissions

Final Market

Collecting PointPoint of Origin waste/residues Processing unit Refinery Trader Final Market

Page 9: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

9© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

ISCC ensures deforestation free supply chains and the protection of valuable

ecosystems – land use change of those areas after 2007 is forbidden

Wetlands

Highly biodiverse grasslandDesignated areasPrimary forests

Forested areas Peatlands

Page 10: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

10© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

ISCC core principles for agricultural production areas – a balanced set of

ecological and social criteria

PRINCIPLE 1

Zero Deforestation

PRINCIPLE 2

Good Agricultural Practice

PRINCIPLE 3

Safe Working Conditions

PRINCIPLE 4

Compliance with Human,

Labour and Land Rights

PRINCIPLE 5

Compliance with Laws and

International Treaties

PRINCIPLE 6

Good Management Practices

and Continuous Improvement

Page 11: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

11© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

How does the external auditor check compliance with

ISCC principles?

Assessment of internal documentsInterview of personnel, managing

directors and stakeholders

Visual inspection of areas, company

facilities, storage, etc

Page 12: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

12© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

Auditors must verify on-site, e.g. environmentally responsible cultivation and

the application of Good Agricultural Practices (GAP),…

Natural vegetation around water-

courses are maintained

Fertilizers applied according soil

analysis and nutritional requirements

Only allowed plant protection

products (PPP) applied

Applicants of PPP are competent and

protected

Storage of PPP in appropriate

facilities

Seedlings from legitimized sources

Page 13: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

13© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

ISCC uses innovative tools such as GRAS, a remote sensing tool to facilitate

the risk assessment and the identification of deforestation

www.gras-system.org

Page 14: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

14© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

© GRAS © GRAS

2007 2016

EVI

2.5 km

Land Use Change 2013

The use of remote sensing data also supports the verification process providing

additional information (e.g. LUC)

Page 15: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

15© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

In addition, low GHG emission values for bio-based products will also play a more

prominent role in the future. ISCC ensures credible and verified GHG calculation

E = eec + el + ep + etd + eu – esca– eccs – eccr

GHG emissions calculation

RED

Processing ep

Transport &

distribution etd

Excess electricity eee

CCR eccr

CCS eccs

Processing ep

Upstream transport etd

Excess electricity eee

CCR eccr

CCS eccs

Cultivation emissions

eec

Land use change eI

Improved

agricultural

management esca

Pre-Processing ep

Agricultural

substrates

Wastes and

residuesProcessing unit Processing unit

Page 16: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

16© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

FeedBio-based

productsFood Energy

Voluntary and mandatory sustainability requirements in different markets can be

addressed via ISCC

Page 17: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

17© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

ISCC is a one stop shop for all crops and markets, and is compliant with many

important platforms and industry standards

Fragmented landscape of sustainability standards

Potential

System

User

MAAP

Potential

System

User

P

o

t

e

n

ti

al

S

y

st

e

m

U

s

e

r

P

o

t

e

n

ti

al

S

y

st

e

m

U

s

e

r

Potential System UserAustralia Colombia Japan

RED

TC 411

Bio-based

products

Feed

Food

Energy

Compliance with industry standards

Page 18: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

18© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

Example SAI compliance: ISCC certified companies fulfil sustainability

requirements of important customers in the food sector

SAI Platform members (active and affiliate)

Page 19: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

19© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

Substantial risks could be linked to the use of renewable resources due to

deforestation, grassland conversion and biodiversity loss

Source: Science, www.aidenvironment.org, www.theguardian.com, www.news.mongabay.com

Page 20: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

20© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

Many supply chains of agricultural commodities for bioplastics origin in regions with

high deforestation rates

Cereals

Soy bean

Sugarcane

Corn

Palm

Cotton

Wood

Page 21: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

21© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

Companies from the chemical industry make commitments to

increase the use of bio-based materials

“Danone and Nestlé Waters have joined forces (...) to form the Natur’ALL Bottle Alliance.

Their aim is to be the first to commercialize 100% bio-based and recyclable PET

bottles. (...) First bottles are expected to hit the shelves by 2020.”

“PlantBottle packaging (...) is the first ever fully recyclable PET plastic beverage bottle

made partially from plants. The material looks and functions just like traditional PET plastic, but

has a lighter footprint on the planet and its scarce resources.”

As a member of the Consumer Goods Forum (CGF), we share their commitment to net-zero

deforestation by 2020 through the sustainable sourcing of pulp, paper, packaging

and palm oil

“The ultimate goal for Elopak is that both our company and our products shall become

carbon neutral, meaning that we have a zero net impact on the drivers of climate

change.“

Page 22: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

22© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

ISCC supports companies and initiatives from the chemical

industry striving for sustainable renewable feedstock

Page 23: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

23© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

One example is Elopak, using ISCC PLUS certified bio-based PE aiming to

reduce the use of fossil-based materials and minimize CO2 emissions

Page 24: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

24© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

NatureWorks was the first ISCC PLUS certified company, and has been

continuously certified since February 2012

Impressions from the first ISCC audit of the Ingeo production chain in October 2011

Images by courtesy of NatureWorks

• Audit in October 2011 was the pilot audit for

the first ISCC PLUS certification

• NatureWorks ISCC PLUS certification covers

the Ingeo production site in Blair, NE

• Feedstock for NatureWorks input materials is

corn

Page 25: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

25© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

Two chain of custody options can be applied under ISCC

• Certified and non-certified material must be kept physically

separated throughout the supply chain

• Certified and non-certified material can be physically mixed in

the supply chain

• This applies for 100% bio-based supply chains and for co-

processing (simultaneous processing of bio-based and fossil

input)

Core features of the ISCC PLUS mass

balance approach

• Mass balance periods of up to three

months possible

• Confined to spatial and legal

boundaries

• Specific regarding sustainability

characteristics (e.g. type of raw

material, country of origin, add-ons)

• No loss of credits between mass

balance periods

• Credit transfer between certified sites

of one company possible under

certain conditions

The chain of custody option Book & Claim cannot be applied under ISCC

Segregation

Mass balance

Page 26: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

26© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

More and more companies are using ISCC to make credible claims for their

sustainable products

Page 27: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

27© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

ISCC is a solution provider for bio-based plastics and circular economy

Bio-based Economy Circular Economy

Source: European Bioplastics, Nijhuis Industries

Page 28: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

28© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

Next step: ISCC also supports the recycling of plastics,

minimizing the use of fossil-based materials and CO2 emissions

▪ “Recycling” = “any recovery operation by which

waste materials are reprocessed into products,

materials or substances whether for the original or

other purposes“*

▪ Aim: decrease of extraction and use of additional

carbon from finite sources, reduction of overall

waste

*Waste Framework Directive 2008/98/EC, Article 3 (17)

1

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29© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

• Safeguarding brand values requires sustainable

and deforestation-free supply chains for renewable

feedstock

• The use of certification schemes contributes to risk

mitigation in supply chains for bioplastics

• Sustainability certification of bio-based products is

operational and already reality. Several large scale

players are already certified by ISCC

• Hugh volumes of ISCC certified feedstock are

already available in the market (e.g. ethanol,

vegetable oil, processing residues from different

industries)

• Traceability along supply chains ensured. Mass

balance and segregation possible

• GHG emissions can be forwarded along the supply

chain to derive at a carbon footprint of the final

product if required

• ISCC is a multi-stakeholder organization. The

ISCC association is open to new members. Become

member of the ISCC family!

Page 30: ISCC: Supporting Sustainable and Deforestation-free Supply ...• Safeguarding brand values requires sustainable and deforestation-free supply chains for renewable feedstock • The

30© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

Follow us on

Many thanks for your attention!

Dr. Peter Hawighorst

Hohenzollernring 72, 50672 Cologne, Germany

Email: [email protected]