ISO 22095 Mass Balance Chain of Custody Audit Requirements
ISO 22095 mass balance audits demand strict site boundaries, verified baseline yield conversions, and zero negative credit balances across accounting periods.
Negative Balance Prohibition
Meaning
A foundational accounting rule prevents a mass balance ledger from showing a deficit of certified polymer credits at any point. Under the negative balance prohibition, a plastics processor cannot allocate or sell more certified recycled material than the physical inventory has received. This constraint prevents the forward-booking of sustainable credits before the feedstock is physically processed.
It maintains the integrity of the mass balance system by ensuring that all claims are backed by existing material.
Material Efficiency
Material sourcing must be coordinated with the production schedule to avoid violating this rule. The negative balance prohibition forces purchasing teams to secure certified polymer grades before the molding runs begin. If a molding run proceeds using conventional resins, the resulting parts cannot be labeled as certified, even if recycled feedstocks are expected to arrive later.
This requirement preserves the physical reality of the material flow within the facility, ensuring that every molded part corresponds to a genuine, historical receipt of sustainable feedstock rather than a speculative future shipment.
Production Limit
Operational delays can occur if certified polymer is not delivered on time, as the extrusion line cannot generate certified products in advance of receiving the feedstock. Implementing the negative balance prohibition means that any interruption in the supply chain halts the allocation of recycled credits immediately. Operators cannot run the compounding process on credit or borrow from future material allocations.
This limit forces production managers to maintain adequate stocks of certified materials.
Financial Consequence
Violating this accounting rule can result in the revocation of certification status for the entire plant. Because the negative balance prohibition is strictly enforced during audits, any credit deficit triggers non-compliance. This consequence leads to lost sales.