Accounting Method
Chain of custody mechanism allows companies to make claims about the certified content of their products based on a volume-tracking approach. Pefc credit system enables a manufacturer to sell a proportion of their output as certified, even if the individual fibres are mixed with non-certified material during production. It is a tool for managing complex supply chains where separating different wood sources is not physically possible.
Mass Balance
Credits are earned when certified wood or pulp enters the facility and are stored in a central account. The company can then apply these credits to a corresponding volume of finished paper or board. This method requires a rigorous audit of the mass balance to ensure that the total amount of certified material sold never exceeds the amount purchased.
It provides a practical way for mills to support sustainable forestry without rebuilding their entire infrastructure.
Labeling Validity
Procurement departments use this system to meet their corporate sustainability targets when 100 percent certified stock is unavailable. It allows for a steady increase in the use of sustainable materials over time. Labels on the packaging inform the consumer that the product supports responsible forest management.
Transparent reporting is required to maintain the validity of the certification and the trust of the stakeholders. External auditors verify the credit ledger during the annual certification review.