Embedding material due diligence in supply chain standards
The sourcing landscape is changing – leading companies are setting ambitious voluntary sustainability targets and sourcing policies, while governments mandate entire sectors to identify, mitigate and remediate adverse impacts linked to their business practices.
We are working with ISEAL members to adapt their supply chain standards and traceability systems to better support their corporate partners with these needs – focused initially on deforestation and conversion-free supply chains.
Credible sustainability systems are effective and widely adopted tools for companies to support improved sustainability practices within their supply chains, including in tackling deforestation. However, for these systems to be effective tools to fully support companies to meet their voluntary and regulatory deforestation and conversion-free (DCF) commitments, adaptations may be needed in their supply chain standards, particularly where they allow mixing of certified and uncertified materials, usually through a chain of custody model called Mass Balance.
ISEAL has been working with our members and partners to build a common understanding of how due diligence controls can be embedded in mass balance systems. This involves defining a set of controls for non-certified supply to ensure that all materials entering a mass balance chain of custody meet minimum company due diligence obligations. This is important as a ‘Controlled Mass Balance’ approach can support inclusive supply chains, limit additional costs associated with the segregation of materials, and embed due diligence approaches deep in global supply chains. The model also has the potential to drive change in non-certified supply chains – expanding the reach and impact of sustainability systems and supporting systemic, sector-wide transformation.
Over 2025, we are developing resources and material on the topic, working with our members and external partners to build consensus on key characteristics of a controlled mass balance model, and showing how material due diligence can be embedded in supply chain standards.
The project runs through 2025. To get involved in the discussion, reach out to Josh Taylor, josh@isealalliance.org.