Percentage System

FSC-STD-40-004V2 Key Topic

Version: 19 Sep 2008

Contents

3 4 1 2 5 6 7

Definition of the Percentage System Defining FSC Product Groups Inputs to the Percentage System The System Sales & FSC Claims FSC-labeling Exercises

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1. Definition

1 of 3 optional systems for making FSC Product Group claims

• • • • •

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 3

1. Definition

Important Terms: Conversion Factor (C.F.) Controlled Wood (CW) Eligible Input FSC Claim Material Category Minor Component Site Post-consumer Reclaimed (PCR)

Ratio between input and output volume of a product/component

FSC CW

– organization non-FSC virgin material controlled by an FSC-certified

Controlled material

– non-FSC virgin material controlled by the organization using the input Inputs eligible for use in FSC Product Groups (see material category) FSC Pure,

FSC Mixed X%

, FSC Mixed Credit,

FSC Recycled X%

, FSC Recycled Credit, FSC Controlled Wood Category of inputs: FSC Pure, FSC Mixed, FSC Recycled, FSC CW, Controlled material, post-consumer reclaimed, pre-consumer reclaimed (Uncontrolled material is ineligible) Uncontrolled wood-based component <5% of the product volume and specifically approved for use in an FSC Product Group A single physical unit located at one locality, geographically unique from other units Reclaimed from a consumer or commercial product that has gone through its final end-use

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2. Defining FSC Product Groups

Define product groups for which FSC percent claims apply

• • •

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)

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

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3. Inputs

All eligible inputs are possible Input Material Category FSC Pure FSC Mixed FSC Recycled FSC Controlled Wood Post-consumer / Pre-consumer Reclaimed Controlled Material Minor Component Potential FSC Claims FSC Mixed X% FSC Mixed X% FSC Mixed X%, FSC Recycled X% FSC Mixed X% FSC Mixed X%, FSC Recycled X% FSC Mixed X% FSC Mixed X% It is possible to make FSC Controlled Wood claims for any eligible inputs/combinations 6

4. The System

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

Input Material Categories FSC Pure + controlled material FSC Mixed + FSC Mixed FSC Recycled + Pre-consumer

FSC Claim

FSC Mixed X% FSC Mixed X% FSC Recycled X% 7

4. The System

OR

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

Input Material Categories FSC Pure + FSC Mixed FSC Mixed + FSC Controlled Wood Post-consumer + Pre-consumer FSC Claim FSC Mixed X% FSC Mixed X% FSC Recycled X%

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

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4. The System

Percentage system requires segregation of inputs by FSC Product Documentation Segregation Identification Labeling / marking

• In space – Secure, identifiable – Storage areas – Production lines – Facilities • In time – Job orders – Claim periods

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4. The System

Transfer system - essentials

Purchasing & 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 • 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 • Designated areas • Make

FSC % claim

• Record volume in tracking system: inventory, sales • Final product cross references with invoice & transport docs

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4. The System Calculation of the Input Percentage

FSC Percentage Claim =

FSC + PCR Inputs Total Inputs

X 100 Input

FSC PCR Total

Description

FSC Pure, FSC Mixed, FSC Recycled All verified

post-consumer reclaimed

inputs FSC + any reclaimed + any controlled (all

eligible material categories

)

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4. The System

FSC Pure FSC CW

Calculation of the Input Percentage

55cbm 25cbm 55 / 80 = .6875 X 100 = = 80cbm FSC Mixed 69% FSC Recycled 75cbm = 87cbm pre-consumer 12cbm 75 / 87 = .862 X 100 = FSC Recycled 86% 12

4. The System Calculation of the Input Percentage

FSC Mixed Credit 55cbm FSC Recycled 85% 90cbm FSC CW 30cbm

FSC Percentage Claim =

55 + 90(.85) cbm 160 cbm

FSC Mixed 82% X 100 13

4. The System

Single percentage calculation

•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

Two options for calculating the FSC percent claim

Rolling average percentage calculation

•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)

The maximum claim period is 12-months

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4. The System 8.3.2(a) Single Percentage Claim

Most common option

• 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.

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4. The System

•

1.

2.

8.3.2(b) Rolling Average Percentage Claim Define / specify:

Intervals

of time for percentage calculation based on inputs during that defined interval;

Claim period

for making a percentage claim based on the percent calculation from the previous interval and for output volumes up to

(<)

interval’s input volumes the The

interval

shall end before the corresponding

claim period

periods and intervals are continuous and overlapping: begins, but claim

2 month intervals with 1 month claim period

JAN FEB MAR FSC % claim for Jan – Feb % calc APR FSC % claim for Feb – Mar % calc MAY FSC % claim for Mar – Apr % calc JUN FSC % claim for Apr – May % calc

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4. The System 8.3.2(b) Rolling Average Percentage Claim More details…

• 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.

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5. Sales & FSC Claims

The invoice essentials

•

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” Transport / shipping documents

•

Same details required for transport docs when invoice does not accompany product 18

6. FSC-labeling

FSC Mixed Sources Label (FSC Mixed)

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

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6. FSC-labeling

FSC Recycled Label Recycled

Cert no. SW-COC-00XXXX © FSC 1996

Label shown here is minimum elements style required when less than 100% post-consumer FSC Recycled = 100% reclaimed content (may include some pre-consumer)

85%

NB: the recycled % in the moebius loop (when included) always refers to post-consumer reclaimed content

To apply the FSC Recycled label the

FSC Recycled percent

shall be:

FSC Recycled 85%

(or greater)

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6. FSC-labeling

NB! FSC Recycled or FSC Mixed?

Mixed Sources

Cert no. SW-COC-00XXXX © FSC 1996

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

70% 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)

NB: the recycled % in the moebius loop (when included) always refers to post-consumer reclaimed content *FSC Recycled = 100% reclaimed

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7. Exercises

LINK TO EXERCISES

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

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THANK YOU!

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