Factsheet ISCC EU - RVO.nl...Factsheet ISCC EU | March, 2012 Pagina 6 van 12 Medium risk (risk factor 1.5), High risk (risk factor 2) [3]. In the case of multiple sites under the same

Factsheet ISCC EU ISCC EU version

Factsheet ISCC EU | March, 2012

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Colophon

Date March, 2012 Status Final version

This study was carried out in the framework of the Netherlands Programmes Sustainable Biomass by Name organisation SQ Consult B.V. Contact person Jinke van Dam, Sergio Ugarte, Sjors van Iersel

Although this report has been put together with the greatest possible care, NL Agency does not accept liability for possible errors.


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Contact

Netherlands Programmes Sustainable Biomass

Elke van Thuijl and Ella Lammers NL Agency NL Energy and Climate Change Croeselaan 15, 3521 BJ Utrecht P.O. Box 8242, 3503 RE Utrecht The Netherlands Email: [email protected]; [email protected]: +31 88 602 2639; 31 88 602 2569 http://www.agentschapnl.nl/en/programmas-regelingen/sustainable-biomass

SQ Consult BV

Jinke van Dam, Sergio Ugarte and Sjors van Iersel SQ Consult BV Prins Bernhardstraat 27 3981BL Bunnik The Netherlands Email: [email protected]: +31.6.3978.3382 www.sqconsult.com


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ISCC EU version (not to be confused with the ISCC DE version operational in Germany since 2010)

Feedstock and end-use covered: all biomass for all types of biomass end-uses

Geographical scope: worldwide

(Based on 31 January 2012)

Level of assurance:

General information

• Fully operational since: 2010 (in a German version)

• EC recognized: Yes, since 19 July 2011 for 5 years

• National approvals: In Germany, Netherlands

• Principles: 6 Principles (social, environmental and economic principles)

• Type of organization: ISCC association (e.V.), represents the ISCC stakeholders. The ISCC System GmbH is responsible for the operations. The ISCC pilot phase and the beginning of the regular operations was supported by the German Federal Ministry of Food, Agriculture and Consumer Protection via the Agency for Renewable Resources (FNR)

• Adherence: No adherence, only recognition by German government

• Current number of certificates: 851 (as of 13 January 2012)

Auditing requirements (working methods for auditors)

Requirements planning audits (planning, conducting audits, reporting) [1]:

• Risk evaluation

• Conduct of audits (inspections)

• To run a register of participants

• Transmission of data to the competent authority

• Storage and handling of information

Auditor assessment procedure before entering a scheme (risk analysis):

Each element of the supply chain that aspires to take part in the ISCC system must start the ISCC standards implementation process by carrying out a self-assessment in view of the ISCC risk categories. […] In their audits, the certification bodies take into account the interconnection of the self-assessment’s result and the design of the management system [3]. All elements of the supply chain that want to be audited according to ISCC and want to receive a certificate must register with ISCC. ISCC registration should take place after contractual agreement with the certification body, but before the audit actually takes place [2]. Prior to each first audit, the certification bodies must conduct a risk assessment for the relevant element of the supply chain and classify it according to the three ISCC risk categories (regular, medium, high) [3]. The results of the risk evaluation have an impact on the intensity of the audit [1]

Sampling requirements:

Sampling only for biomass producers, and for warehouses/logistical networks that a 1st gathering point uses for supply or delivery of biomass/biofuel. Sampling is at least the square root of the number of sites, based on risk analyses; Regular risk (risk factor 1),


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Medium risk (risk factor 1.5), High risk (risk factor 2) [3]. In the case of multiple sites under the same certificate, the mass balance has to be operated at site-level.

Self-declaration:

Audits of warehouses delivering to a first gathering point: If a first gathering point has self-declarations from warehouses supplying the first gathering point, a sample of a min. of the square root (based on the risk assessment) of warehouses belonging to a first gathering point must be controlled (The audit of these warehouses is part of the audit of the first gathering point. Therefore these warehouses will have the same certificate number as the first gathering point) [2].

Stakeholder consultation:

No stakeholder consultation prior to start of certification process

Interviews with stakeholders is a standard part of an audit, and appears multiple times on the verification checklist [4]

Auditing frequency:

Recertification is needed annually.

In case of reasonable suspicion, especially due to the results of precedent surveillances, the competent authority may induce the surveillance of the element of the supply chain in shorter than annual intervals [2].

Maintenance of certificate:

Annual re-certification is required.

Requirements on missing information during audit:

As a general rule, there can be supplements, corrections and replacements of documents, records, reports, protocols and other information and data showing compliance with the ISCC principles 1 to 6 and with the ISCC traceability, mass balance and GHG requirements. This can take place during the audit or afterwards. However, before a certificate can be issued all existing non-conformities must be solved. All missing documents and proofs must be made available to the auditor the latest 40 days after the date of audit. Otherwise the issue of a certificate is not possible [2].

Handling major and minor non-compliances:

In the case any violations of ISCC principle 1 occur, i.e. there is any land use change, which violates ISCC principle 1, the issue of a certificate is not possible. If violations of ISCC principle 1 become evident during a surveillance or re-certification audit the certificate must be withdrawn immediately. No future certification is possible [2]

In the case of violations of principles 2 to 6, the farm/plantation has up to 40 days to correct and prove compliance. Before the issue of a certificate all major musts be complied with and at least 60% of the minor musts. Non-conformities in the area of traceability, mass balance and GHG calculation must also be corrected within 40 days after the audit. Otherwise the issue of a certificate is not possible [2]

Communication of non-compliances or fraud:

If a certificate is withdrawn, it is taken out of the database on the ISCC website (also in case of non-compliant group members, this member is removed from the database

Dispute resolution / complaints regulation:

• Conflicts that arise within national and regional initiatives shall be resolved by


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arbitration on the according level.

• Conflicts, resulting from the relation between the certification body and the participants of the system (e.g., appeal against refusal of certification), shall be resolved by the arbitration board of the relevant certification body.

• Conflicts, resulting from decisions and procedures of ISCC e. V., respectively the Board or the management, and the interpretation of the international valid standards, shall be resolved by the present procedure.

• Conflicts, that actually concern national or regional matters which can not be resolved on national or regional levels, shall be resolved by the present procedure.

Limited assurance level:

No indication of “limited assurance level”. ISCC has considered the requirements of ISAE 3000 in its system set up especially with respect to quality control, risk management by ISCC and the audits, planning and performance of audits, sampling processes and reporting [2].

Guidance for auditors:

A regulations document for audits [2] and a checklist for audits have been elaborated [4]

Quality requirements auditors

Rules included on quality requirements auditors:

Conduct of audits in conformity with standard ISO 19011 [1]

ISCC has considered the requirements of ISAE 3000 in its system set up especially with respect to quality control, risk management by ISCC and the audits, planning and performance of audits, sampling processes and reporting [2].

Skills [1]

General: Covers work experience, hours of auditor training, auditor experience, personal aptitude, ISCC basic training and regular participation in ISCC training courses

Auditors on farms specific competencies: Knowledge in agriculture, handling and evaluation of data sources, Pedological knowledge, Biological and ecological knowledge, GHG accounting (if required). Evidence of competence can be demonstrated via university (or similar) education in one of 4 areas.

Auditors in the Chain of Custody and GHG verification specific competencies: Knowledge in mass balance methodology and traceability, Knowledge in GHG accounting. Evidence of competence can be demonstrated via university (or similar) education in one of 2 areas.

Level of independency / third party verification [1]:

• Auditors are external (third party auditing).

• Independence and conflict of interest: ISO Guide 65.

Requirements included in conformity with standards or norms:

Certification bodies have to fulfil the following requirements ISO 19011, ISO Guide 65, ISO 17021; Optional/preferable: ISO 14064-3 Part 3, ISO 14065 [1]

Approved certification bodies: http://www.iscc-system.org/certification_bodies/recognized_cbs/index_eng.html


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Control of the auditors

Control of certification bodies:

Requirement of accreditation or recognition of auditors by [1]:

Recognition by a national public authority or an accreditation body. Such accreditation would be done by members of the IAF, by the bodies referred to in Article 4 of Regulation (EC) No 765/2008 or by bodies having a bilateral agreement with the European Co-operation for Accreditation. Accreditation bodies shall work in line with ISO 17011: 2004.

Chain of custody (CoC):

Description CoC

Chain coverage:

The following elements of the supply chain shall register:

Farms/ plantations, First gathering points, Conversion units (oil mills, refineries, esterification plants, sugar mills, ethanol plants, other conversion units), Traders/ warehouses [2].

Farmers can be certified as a group, or be part of the certification of the first gathering point.

ISCC strictly follows the physical flow of biomass/biofuel, therefore entities that do not take physical possession don’t need to be certified

All elements of the supply chain that want to be audited according to ISCC and want to receive a certificate must register with ISCC. ISCC registration should take place after contractual agreement with the certification body, but before the audit actually takes place. Those elements in the value chain which are not obliged within the ISCC System to receive a certificate and do not actively aspire to receive one on a voluntary basis do not need to register with ISCC. Transport does not need to register with ISCC and does not need to receive a certificate. Relevant market players such as an economic operator which brings sustainable bio-liquids/biofuels into the market can receive a certificate on a voluntary basis [2].

Traceability methods included [5]:

ISCC has 3 CoC options:

• Mass Balance (Physical mixing and documentation of quantity credits)

• Physical segregation options:

o Physical segregation of all batches (identity preserved)

o Physical segregation of sustainable and non-sustainable batches

Possibility of less stringent requirements:

Residues: Benefits for residues have been directly derived from the standard RED provisions

Smallholders:

Smallholders are treated the same way as other farmers

Criteria for multi-site certification are that production units:

Audits of first gathering point: All first gathering points that want to deliver sustainable biomass must be audited. No sampling or group audit of first gathering points is possible [2].


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Audits of warehouses after the first gathering point: All warehouses after the first gathering point that a company wants to use for delivering sustainable biomass must be audited. If the warehouses belong to a logistics network the logistic centre plus a min. of the square root of the number of associated warehouses shall be audited [2]. Audits of conversion units: All conversion units (e.g. oil mills, oil refineries, biodiesel plants, ethanol plants) that want to deliver sustainable biomass must be audited. No sampling or group audit of conversion units is possible [2].

Audits at other elements of the supply chain: Audits are carried out at other elements of the supply chain that applied for an audit according to ISCC at any certification body [2].

Recognition by other standards:

After gap analysis, 2BSvs has accepted ISCC if a few basic conditions can be fulfilled

Recognition of other standards:

ISCC EU accepts all EC approved standards as long as some information requirements regarding traceability on delivery notes and/or certification are met.

Information handling

Requirements system on the document management system;

Retain data evidence (in number of years):

The company must keep all relevant records and documents for the period of ten years [6].

Specification time frame mass balance for operating:

Three months [6].

Prevention double claiming or counting:

The mass balance system ensures for every element of the supply chain that the outgoing sustainable quantity does not exceed the incoming sustainable quantity within the maximum period of three months. The integrity of the mass balance quantities (i.e. crosschecked with the quantities from the companies reporting system) and the correctness of the mass balance calculation is audited by an independent certification body. In case more sustainable products have been delivered than received, the audit will reveal any inconsistencies caused by mistake, double counting or fraud [6].

Quality requirements (information system):

Companies must keep records for all incoming sustainable products into the company or into internal processes. This includes, for instance, names and address of suppliers, copies of certificates and statements of conformity, traceability attributes (such as unique batch identification number and details of the supplier and receiving party) [6].

Handling of certificates (or proof of sustainability) throughout the chain:

During each receipt of goods the receiver has to examine by means of the available ISCC database (ISCC webpage) whether the supplier of sustainable products possesses a certificate or statement of conformity valid for the period of the delivery [6].

Information requirements for stakeholders in the value chain:

Not specified

Costs:


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Direct costs of system

Cost of membership:

Membership-fees for ISCC-association members Company (Turnover in € per year) Annual fee(1) 2011

Company < 10 Mill. € Turnover 500 € Company > 10 Mill. € < 50 Mill. € Turnover 1.000 € Company > 50 Mill. € < 250 Mill. € Turnover 2.000 € Company > 250 Mill. € Turnover 3.000 € NGOs, Research, GOs 250 € Individual Membership 50 € 1. Amount of annual membership-fees is independent from beginning of membership and legal relation to pre-existing ISCC-members

Fees for system-user (ISCC-membership is not required for getting certified) Registration-and Certificate-Fees3 First Gathering Points3) (Tons p.a)

Interfaces4) (Turnover € p.a.)

Registration Fee5) (Non recurring)

Certificate Fee5, 6) (per certificate)

< 2.000 < 0,6 Mill. 50 € 50 € < 10.000 < 3 Mill. 100 € 100 € < 50.000 < 15 Mill. 150 € 150 € < 100.000 < 30 Mill. 200 € 200 € < 200.000 < 60 Mill. 250 € 250 € < 500.000 < 150 Mill. 300 € 300 € > 500.000 > 150 Mill. 500 € 500 € 3. Certificate-Fees for the Upgrade of a certificate from ISCC DE to ISCC EU are determined analogous

4. Based on the total turnover in tons per location per year. Warehouses delivering to the First Gathering Point are not subject to any fee.

5. Based on the total turnover in € per location per year. Applies for all interfaces except for the First Gathering Point.

6. Warehouses after the First Gathering Point and farms/plantations or group of farms, which ask for a certificate on voluntary bases, are subject to the same fee structure as the First Gathering Points (annual turnover in tons).

Quantity dependent Fees (First Gathering Points and Warehouses do not pay quantity dependent fees)

Interfaces with ISCC-membership (per sold Ton of sustainable liquid biomass or biofuel)

Interfaces without ISCC-membership (per sold Ton of sustainable liquid biomass or biofuel)

0,02 € 0,03 €


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References:

1. ISCC EU 251: Requirements on Certification Bodies, Version 2.3

2. ISCC EU 252: Regulations to carry out audits, Version 2.3

3. ISCC EU 207: Risk management, Version 2.3

4. ISCC EU 202: Checklist for the Control of the Requirements, Version 2.3

5. ISCC EU 204: Mass Balance Calculation Methodology, Version 2.3

6. ISCC EU 203: Requirements for traceability, Version 2.3


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Documents

Factsheet ISCC EU - RVO.nl...Factsheet ISCC EU | March, 2012 Pagina 6 van 12 Medium risk (risk factor 1.5), High risk (risk factor 2) [3]. In the case of multiple sites under the same