Expected Answers from Traceability Exercise
Answer to Question 1 (Traceability Model):
- Model Used: They are using the Mass Balance (MB) Model.
- Justification: The MB model allows for the mixing of MSPO and non-MSPO certified oil palm biomass at any stage in the Chain of Custody, and there are no requirements for separate storage or controls in the production process. Since GreenPellets stores and processes certified and non-certified EFB together, they fit this model perfectly.
- Alternative Model: They cannot use the Segregation (SG) Model because the SG model requires that MSPO certified biomass be kept physically separate from non-certified biomass at every stage of production, processing, and manufacturing, striving for 100% separation.
Answer to Question 2 (Accounting System):
- Accounting System Applied: They are using the Fixed Inventory Periods accounting system.
- Justification: Under the MS 2751:2022 standard, an organisation operating a fixed inventory period must balance the quantity of physical inputs and outputs within a maximum period of three months. Because GreenPellets reconciles their data quarterly (every three months), they are operating under this specific system rather than a continuous, real-time accounting system.
Answer to Question 3 (Credit Status):
- Quantity Claimed as Credit:3,000 MT.
- Calculation: The facility received 12,000 MT of MSPO certified input but only supplied 9,000 MT of MSPO certified output. (12,000 MT – 9,000 MT = 3,000 MT surplus).
- Rules for Carrying Forward: Because they are using a fixed inventory period, this 3,000 MT surplus is considered an “unused credit”. According to the standard, unused credits can be carried over and recorded in the material accounting system for the following inventory period. However, these unused credits shall not be carried over 12 months, or they will be forfeited after four consecutive inventory periods.