Percentage SystemFSC-STD-40-004V2 Key Topic

Version: 19 Sep 2008

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Contents

Definition of the Percentage System

Defining FSC Product Groups

Inputs to the Percentage System

The System

FSC-labeling

Sales & FSC Claims

Exercises

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• Outputs may be sold with an FSC percent claim based on the percent of FSC-certified and/or post-consumer reclaimed inputs used during the claim period

• Total outputs in product group may be sold with the FSC percent claim

• FSC percentage based on inputs to one FSC product group

• FSC percentage based on inputs at a single site

• Typical for– Batch production– High volume of FSC / PCR supply

1. Definition

1 of 3 optional systems for making FSC Product Group claims1 of 3 optional systems for making FSC Product Group claims

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Important Terms:Important Terms:

1. Definition

Conversion Factor (C.F.)Conversion Factor (C.F.) Ratio between input and output volume of a product/component

Controlled Wood (CW)Controlled Wood (CW) FSC CW – non-FSC virgin material controlled by an FSC-certified organization

Controlled material – non-FSC virgin material controlled by the organization using the input

Eligible InputEligible Input Inputs eligible for use in FSC Product Groups (see material category)

FSC ClaimFSC Claim FSC Pure, FSC Mixed X%, FSC Mixed Credit, FSC Recycled X%, FSC Recycled Credit, FSC Controlled Wood

Material CategoryMaterial Category Category of inputs: FSC Pure, FSC Mixed, FSC Recycled, FSC CW, Controlled material, post-consumer reclaimed, pre-consumer reclaimed (Uncontrolled material is ineligible)

Minor ComponentMinor Component Uncontrolled wood-based component <5% of the product volume and specifically approved for use in an FSC Product Group

SiteSite A single physical unit located at one locality, geographically unique from other units

Post-consumer Reclaimed Post-consumer Reclaimed (PCR)(PCR)

Reclaimed from a consumer or commercial product that has gone through its final end-use

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• One FSC Product Group shares the same basic input characteristics

– Species– Quality of inputs– Conversion factor

• Product groups may be defined individually based on customer order and single percent calculations

• General product groups shall be approved by the CB and represented in the Product Group Schedule (PGS)

2. Defining FSC Product Groups

A variety of components and species may be used in one product group provided they are consistent

Define product groups for which FSC percent claims apply

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All eligible inputs are possibleAll eligible inputs are possible

3. Inputs

Input Input Material CategoryMaterial Category Potential Potential FSC ClaimsFSC Claims

FSC PureFSC Pure FSC Mixed X%FSC Mixed X%

FSC MixedFSC Mixed FSC Mixed X%FSC Mixed X%

FSC RecycledFSC Recycled FSC Mixed X%, FSC Recycled X%FSC Mixed X%, FSC Recycled X%

FSC Controlled WoodFSC Controlled Wood FSC Mixed X%FSC Mixed X%

Post-consumer / Pre-consumer Post-consumer / Pre-consumer ReclaimedReclaimed

FSC Mixed X%, FSC Recycled X%FSC Mixed X%, FSC Recycled X%

Controlled MaterialControlled Material FSC Mixed X%FSC Mixed X%

Minor ComponentMinor Component FSC Mixed X%FSC Mixed X%

It is possible to make FSC Controlled Wood claims for any eligible inputs/combinations

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Inputs of different material categories are transformedtransformed with an FSC percentage claim calculated based on input volumes, e.g.,

Input Input Material CategoriesMaterial Categories FSC ClaimFSC Claim

FSC Pure + controlled materialFSC Pure + controlled material FSC Mixed X%FSC Mixed X%

FSC Mixed + FSC MixedFSC Mixed + FSC Mixed FSC Mixed X%FSC Mixed X%

FSC Recycled + Pre-consumerFSC Recycled + Pre-consumer FSC Recycled X%FSC Recycled X%

4. The System

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OR, inputs from different material categories are combinedcombinedwith an FSC percentage claim calculated based on input volumes, e.g.,

Input Input Material CategoriesMaterial Categories FSC ClaimFSC Claim

FSC Pure + FSC MixedFSC Pure + FSC Mixed FSC Mixed X%FSC Mixed X%

FSC Mixed + FSC Controlled WoodFSC Mixed + FSC Controlled Wood FSC Mixed X%FSC Mixed X%

Post-consumer + Pre-consumerPost-consumer + Pre-consumer FSC Recycled X%FSC Recycled X%

4. The System

Note: the percentage system cannot be used for the trading of finished products

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Ensuring traceability

• In space– Secure, identifiable– Storage areas– Production lines– Facilities

• In time– Job orders– Claim periods

IdentificationLabeling / marking

IdentificationLabeling / marking

SegregationSegregation

DocumentationDocumentation

Percentage system requires segregation of inputs by FSC Product Group (inputs for the same product group may be co-mingled)

4. The System

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Transfer system - essentialsPurchasing & Receiving Processing Final Storage & Sales

• Specify material category

• Check supplier documentation for FSC claim

• Ensure distinguishing marks (labels)

• Record volume in tracking system

• Use distinguishing marks, &/or&/or

• Distinct batch runs

• Record time period

• Record input volume according to category

• Record FSC percent calculation (using the input % / credit claim)

• Record conversion

• Use distinguishing marks (labels), &/or&/or

• Designated areas

• Make FSC % claimFSC % claim

• Record volume in tracking system: inventory, sales

• Final product cross-references with invoice & transport docs

4. The System

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Calculation of the Input PercentageCalculation of the Input Percentage

4. The System

FSC + PCR InputsFSC + PCR Inputs Total InputsTotal Inputs

FSC FSC Percentage ClaimPercentage Claim == X 100X 100

InputInput DescriptionDescription

FSCFSC FSC Pure, FSC Mixed, FSC RecycledFSC Pure, FSC Mixed, FSC Recycled

PCRPCR All verified All verified post-consumer post-consumer reclaimed reclaimed inputsinputs

TotalTotalFSC + any reclaimed + any controlled FSC + any reclaimed + any controlled

(all (all eligible material categorieseligible material categories))

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55cbm55cbmFSC PureFSC Pure

25cbm25cbmFSC CWFSC CW== 80cbm80cbm

55 / 80 = .6875 X 10055 / 80 = .6875 X 100 FSC MixedFSC Mixed 69% 69%==

75cbm75cbmFSC Recycled

12cbm12cbmpre-consumer== 87cbm87cbm

75 / 87 = .862 X 10075 / 87 = .862 X 100 FSC FSC RecycledRecycled 86% 86%==

4. The System

Calculation of the Input PercentageCalculation of the Input Percentage

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FSC Mixed CreditFSC Mixed Credit

55cbm55cbm

FSC Recycled 85%FSC Recycled 85%90cbm90cbm

FSC CWFSC CW

30cbm30cbm

4. The System

Calculation of the Input PercentageCalculation of the Input Percentage

55 + 90(.85) cbm55 + 90(.85) cbm 160 cbm160 cbm

FSC FSC Percentage ClaimPercentage Claim == X 100X 100

FSC Mixed 82%FSC Mixed 82%

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4. The System

The maximum claim period is 12-months

Two options for calculating the FSC percent claim

•Continuous production•Fluctuating input proportions•Claim periods are overlapping and continuous•Claim periods include defined intervals of time for calculating the percentage•Accumulated inputs during the interval represent the FSC percent claim (FSC claim is based on average)

•Typical for isolated production, customer orders, or assembled units•One calculation based on total inputs to that production•Claim periods are often isolated or defined as job orders•FSC percent claim is actual

Single percentage calculation

Rolling average percentage calculation

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4. The System

• Claim period can be any length of time up to 12-months as long as the same FSC percentage claim is made and is based on inputs used for making individual claims, i.e., on the invoice.

• 12-month claim periods are used when there is devoted production and sales of the same FSC Product Group.

• If FSC production and sales are intermittent:– The claim period equals the length of time for isolated

production: receipt of material – production – sales OR– Job order is specified

• Percent calculation is based on the inputs used for individual claims.

8.3.2(a) Single Percentage Claim8.3.2(a) Single Percentage ClaimMost common optionMost common option

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4. The System

• Define / specify:1.1. IntervalsIntervals of time for percentage calculation based on inputs during that

defined interval;2.2. Claim periodClaim period for making a percentage claim based on the percent

calculation from the previous interval and for output volumes up to (<) the interval’s input volumes

The interval shall end before the corresponding claim period begins, but claim periods and intervals are continuous and overlapping:

2 month intervals with 1 month claim period

8.3.2(b) Rolling Average Percentage Claim8.3.2(b) Rolling Average Percentage Claim

JANJAN FEBFEB MARMAR APRAPR MAYMAY JUNJUN

FSC % claim for Jan – Feb % calc

FSC % claim for Feb – Mar % calc

FSC % claim for Mar – Apr % calc

FSC % claim for Apr – May % calc

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4. The System

• Claim period is the length of time that the company will make the same FSC percentage claim for that product group.

• The percentage calculation and claim are based on a defined interval of time that takes place prior to when the claim period begins.

• Company determines:– What is the interval of time that will give the desired average percentage claim?– What is the length of time needed for selling products with the same

percentage claim for a volume up to the total input volume in the specified interval?

• If any material is used for non-FSC sales, that volume cannot contribute to the percentage calculation.

• FSC Claims made during the claim period are based on inputs from an earlier interval of time (just prior to when the claim period begins)

• Inputs to the product group shall always be eligible and shall be the same, otherwise this will constitute a different FSC product group.

8.3.2(b) Rolling Average Percentage Claim8.3.2(b) Rolling Average Percentage ClaimMore details…More details…

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5. Sales & FSC Claims

The invoice essentials

Transport / shipping documents

•Each FSC Product Group is clearly identified with the applicable FSC percent claim

•FSC certificate code of the Organization is clearly represented–SW-COC-00XXXX for “FSC Mixed X%”, “FSC Recycled X%”–SW-CW-00XXXX for “FSC Controlled Wood”

•Same details required for transport docs when invoice does not accompany product

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6. FSC-labeling

FSC MixedFSC Mixed = any combination of = any combination of eligible inputs, including some eligible inputs, including some virgin contentvirgin content

To apply a variation of the FSC Mixed Sources label the FSC Mixed percent shall be:

1. FSC Mixed 70% (or greater)

2. FSC Mixed 50% (or greater for chip and fiber until end of 2009)

The FSC Mixed 50% minimum for chip and fiber products is covered by FSC-ADV-40-004

The FSC Mixed 50% minimum for chip and fiber products is covered by FSC-ADV-40-004

FSC Mixed Sources LabelFSC Mixed Sources Label (FSC Mixed)(FSC Mixed)

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FSC Recycled LabelFSC Recycled Label

6. FSC-labeling

FSC RecycledFSC Recycled = 100% = 100% reclaimedreclaimed content (may include some content (may include some pre-consumer)pre-consumer)

To apply the FSC Recycled label the FSC Recycled percent shall be:

FSC Recycled 85%FSC Recycled 85% (or greater)

Label shown here is minimum elements style required when

less than 100% post-consumer

RecycledCert no. SW-COC-00XXXX

© FSC 1996

NB: the recycled % in the moebius loop (when included) always refers to

post-consumer reclaimed content

85%

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NB! FSC Recycled or FSC Mixed?NB! FSC Recycled or FSC Mixed?

6. FSC-labeling

Inputs:Inputs:

FSC Recycled (or post-consumer reclaimed)

+ Controlled Wood

= FSC Mixed

To apply FSC label, post-consumer percent shall be: 70% or greater (50% for chip/fiber until 2010)

*FSC Recycled*FSC Recycled = 100% = 100% reclaimedreclaimed

Label shown here is minimum elements style required when there is no FSC virgin content

Mixed SourcesCert no. SW-COC-00XXXX

© FSC 1996

NB: the recycled % in the moebius loop (when included) always refers to

post-consumer reclaimed content

70%

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LINK TO EXERCISES

7. Exercises

Percentage System Exercises

Note: you must exit presentation mode and double-click on the ‘word’ icon to open exercises

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THANK YOU!