The Rainforest Alliance Mass Balance Sourcing Program is available only for specific commodities, which are referenced in the Appendix to this Guidance document. If your company is only selling segregated certified materials, this document does not apply. The key requirements of the Rainforest Alliance Mass Bal-ance Sourcing Program are as follows:

GOVERNANCE

General / Scope

In compliance with the Rainforest Alliance Sustainable Agriculture Standard for farms and farm groups, eli-gible certified commodities must be segregated until responsibility is transferred from the farm certificate holder to the first buyer (for example via the issue of the first transaction certificate) and may be handled with mass balance processing from that point. All companies that take physical and/or legal possession of a product originating from a Rainforest Alliance Certified™ farm and make promotional, on-pack or sales claims (for example, business to business claims) regarding the certified status of these products must comply with the Rainforest Alliance Chain of Custody (CoC) standard and policy.

CoC is the process of verifying a product’s handling from a certified farm through the various stages of manufacturing and processing to assure the end consumer that the claims made about the certi-

Guidance for Working with the Rainforest Alliance Mass Balance Sourcing Program

fied product are true. The Rainforest Alliance CoC Standard requires that a credible management system and traceability is in place from this point in the supply chain onward to ensure the equivalent volumes of cer-tified materials can be transferred/processed. When operating a mass balance system, there are a few differences in CoC implementation that are outlined in Appendix 1.

Operator Scope

Mass Balance Sourcing Program operators must comply with the CoC policy. They can choose to man-age the requirements at a single site or multi-site level. The multi-site certificate has no geographic restric-tions in its scope. To qualify for a global multi-site cer-tificate, the operator’s sites must be under a central administration and use the same management system. They must also be CoC certified under one multi-site certificate with the same Certification Body.

If a site has Rainforest Alliance’s single-site CoC certification, single-site mass balance accounting will be required. Transactions between single site CoC certificates, even within the same company must always relate to changes of physical or legal owner-ship. Within a multi-site CoC certificate, mass balance credit volumes may be transferred between sites with or without an accompanying legal or physical change of ownership.

Companies are encouraged to maintain fully segregated supply chains whenev-er possible, as this is the best way to achieve full traceability from farm to end-product and to link product contents to origin. But because full segregation isn’t possible for all commodity supply chains, the Mass Balance Sourcing Program was created. This will enable manufacturers, brands, and retailers to support the field impacts of certification without the need to change manufacturing processes to comply with the requirements of segregation.

The Rainforest Alliance is an international nonprofit

organization working to build a future in which

nature is protected and biodiversity flourishes,

where farmers, workers, and communities prosper,

and where sustainable land use and responsible

business practices are the norm. We envision a world

where people and nature thrive in harmony.

rainforest-alliance.org

OCTOBER 2018

MASS BALANCE ACCOUNTING

Traceability

All sales and shipment transactions of mass balance materials or products claimed as Rainforest Alliance Certified must be reported to the Rainforest Alliance using our online system, Marketplace 2.0. At mini-mum, all sales conducted during a calendar quarter must be registered in Marketplace 2.0 within 30 days of the end of that quarter.

Mass balance credits are valid for a maximum of three years. If sales exceed purchases, these must be covered with sufficient purchases of certified inputs by the end of the quarter in order to issue Transaction Certificates (TCs) for that quarter.

Product Recipe and Origin Matching

When using mass balance, transaction certificates (TCs) for purchases of the certified ingredients should reflect the recipe of the product. For example, if the formulation for a chocolate product is 30 percent cocoa butter and 70 percent cocoa powder, TCs should be purchased for these certified ingredients in the same proportions. It is not possible to convert or substitute TCs unless this reflects the processing that has taken place or could take place e.g. cocoa powder TCs cannot be converted to cocoa butter TCs, but cocoa bean TCs may be converted to cocoa powder or butter using the standard conversion ratios. Similarly, orange juice soluble solids can be converted to Frozen Concentrate Orange Juice (FCOJ) or Not From Con-centrate (NFC) products, but once there is a TC for NFC then that volume can no longer be converted to FCOJ solids but must be used for NFC products only.

Origin matching for materials or products is only required if the seller wishes to make a claim regard-ing the country of origin of that product on pack or in sales, marketing, or promotional materials. For ex-ample, if a chocolate bar claims to be a blend of cocoa mass from Côte d’Ivoire and Ecuador then the opera-tor must buy certified cocoa with TCs from producers in these origin countries in approximately (within 10 percent margin of error) the same proportions as in the recipe for the product.

If no origin claim is made, the source country on the

Transaction Certificates may differ from the physical origin of the product as a result of mixing. The country stated on the TC indicates the country where a vol-ume of ingredient equivalent to the volume used to produce the product was purchased from Rainforest Alliance Certified farms.

Avoiding Double Counting for Multi-Certified Materials

If a batch of certified material is purchased from a farm that has more than one sustainability certification (e.g. Rainforest Alliance and Fairtrade), then the equiva-lent volume of material can be sold forward with both certifications attached to the batch. However, the two certifications may not be separated and applied to two separate batches of material, each equivalent in volume to the original purchase, as this would be considered double accounting. Volumes entered in Marketplace 2.0 as Rainforest Alliance Credits and sold under an alternative scheme must be recorded in Marketplace as “Sold as non RAC.”

For example, if an operator has purchased 100 MT of cocoa powder made from beans grown on a farm that has both Rainforest Alliance and Fairtrade certifica-tion, the company cannot sell forward 100 MT of Rainforest Alliance Certified cocoa powder and 100 MT of Fairtrade certified cocoa powder. Instead, the total volume of cocoa powder that can be sold forward as certified (Rainforest Alliance and/or Fairtrade) from that batch must not exceed 100 MT. The Rainforest Alliance is working closely with other certifications to avoid double counting of certified materials, and this will be carefully checked during CoC audits.

Conversion Ratios

If a user wishes to convert mass balance credits to allow them to be used for further processed materials (for example from cocoa beans to liquor, or from cocoa liquor to powder and butter) then they must use the conversion ratios set out per crop below. It is not pos-sible for credits to be converted backwards (e.g. from cocoa liquor to beans) or in any other manner inconsis-tent with actual processing conversions. Details of the specific ratios per crop are provided in the appendi-ces. In the case of orange juice products, the original yield at first extraction will determine the number of soluble solids available for the different products,

and clear. As with the Rainforest Alliance Certified seal, the available colors for the Mass Balance Sourc-ing label include Pantone 625 green, black and white, or reversed white printed on a dark background. The background to the rectangle may be white or translu-cent. A clear space equal to 20 percent of the label’s width must be maintained around the label to avoid encroachment by other graphics or text.

Volume Equivalencies

The Mass Balance Sourcing label can only be used on product packaging if purchases of Rainforest Alliance Certified inputs are equivalent to 100 percent of the ingredient in the recipe requirement of the SKU; this means that a volume of certified material equivalent to 100 percent of the SKU’s material content for the specified commodity must be purchased from Rainfor-est Alliance Certified farms and a Marketplace TC must be available to document this transaction.

Third Party Manufacturing

In order for a mass balance sourcing claim to be made when a product contains third-party manufactured inclusions that also contain the crop in question, specific rules apply based on total content in the product. For example, if a product contains cocoa-based inclusions (e.g. chocolate chip cookie crumb in a chocolate tablet) produced by a third party which account for less than 10 percent of the total cocoa content of the SKU, then the primary manufacturer of the product may purchase additional Rainforest Alliance Certified cocoa to cover the cocoa content of the inclusion. In this scenario the third-party supplier of the inclusion would not be required to comply with the rules outlined in this document. However, if the inclusion accounts for 10 percent or more of the total content of the SKU, then the third-party inclusion manufacturer must ensure that its own supply chain sources a volume of cocoa equivalent to 100 percent of the cocoa content of the inclusion from Rainforest Alliance Certified farms.

or [CROP] SOURCING

[CROP] SOURCING

NFC or FCOJ. Once these solids are converted via a TC to FCOJ for example, then the mass balance credits going forward will only be valid for FCOJ products and cannot be converted to NFC.

LABELLING, CLAIMS, AND USE OF TRADEMARKS

General

As with all trademark users, companies should regis-ter in Marketplace 2.0, obtain a License Agreement, and ensure their traceability information is updated prior to the use of any Rainforest Alliance trademarks.

Any public use of the Rainforest Alliance trademarks, including the Mass Balance Sourcing label and ac-companying text on packaging, promotional materials, press releases, and web pages, etc., must be approved by the Rainforest Alliance prior to publication. This can be done online through Marketplace 2.0. For full guidance on use of Rainforest Alliance trademarks please refer to Requirements and Guidelines for Use of the Rainforest Alliance Trademarks (July 2016), available here. Until the guide is updated to reflect the mass balance claims and labelling options, further guidance is provided in this section.

New Labelling Option for Mass Balance Sourcing

Companies promoting products made with materials sourced through the Mass Balance Sourcing Program should use the Rainforest Alliance’s new Mass Balance Sourcing label instead of the traditional Rainforest Al-liance Certified green frog seal. This label can be used either on the front or the back of product packaging, but must be accompanied by an explanatory state-ment and URL to a website which provides more infor-mation about the Rainforest Alliance’s Mass Balance Sourcing Program, either www.ra.org/mb or on the brand/product’s website. If space is limited, the label may be used on the front of the pack and the explana-tory statement included on the back of the pack.

Sample explanatory statement: “We purchase a volume of [name of commodity] from Rainforest Alliance Certified™ farms equivalent to the volume used in this product.” For more, see: www.companyname.com/[crop-sourcing] or www.ra.org/mb.

Design Specifications

The Mass Balance Sourcing label must be a rectangle with rounded corners and dimensions no smaller than 25 mm x 30 mm, and the seal within it must be no smaller than 19 mm wide. The explanatory statement must be printed in a font size that is sufficiently legible

same site for different product lines; in this case the auditor should include two sets of findings for these different claims. Should the auditor encounter the company incorrectly implementing the mass balance criteria aside from the CoC Standard rules outlined below, then the auditor shall contact Rainforest Alli-ance at agcoc@ra.org to inform them of this error. The Rainforest Alliance reserves the right to implement sanctions per the CoC Policy. The following is guid-ance for companies and auditors to use when evaluat-ing mass balance systems:

APPENDICES

Appendix 1: CoC Audit Requirements for Mass Balance Sourcing Program

All Chain of Custody (CoC) Standard criteria apply unless indicated below. Auditors must be familiar with the Mass Balance Sourcing rules outlined in this document to ensure that the company is using the mass balance system correctly. Some companies may be implementing mass balance and segregation at the

Criteria 1.1.bProcedures and records for controlling the recep-tion, processing, mixing, storing, packaging, deliv-ery, transport, and resale of products coming from certified farms.

Criteria 1.2The personnel involved with the handling and processing of certified products shall demonstrate that they have been trained and that they have the knowledge and skills to effectively implement the Participating Operator’s Chain of Custody Manage-ment System.

Section 2. Traceability

Criteria 2.2The Participating Operator shall implement a sys-tem for identifying the certified products by means of physical or visual identification.

Criteria 2.6The Participating Operator shall check supplier documentation to ensure it includes one of the following:a. A copy of a Transaction Certificate(s) from the Rainforest Alliance or associated Transaction Cer-tificate number(s); or b. Supporting documentation (supply contracts, in-voices, delivery documents, etc.) that indicates the Participating Operator’s claim for the product(s) purchased.

CoC Criteria Guidance for Mass Balance Operators

Participating operators (POs) implementing the Mass Balance Sourcing Program are only required to develop and implement procedures and keep records for controlling the purchase, receipt, and sale of the certified product. POs shall notify the Rainforest Alliance of any overselling that occurs.

Training is required and will be verified by the audi-tors for administrative, accounting, receiving, deliv-ery and/or sales staff, sufficient to ensure that the volume of inputs processed for the Mass Balance Sourcing Program meets or exceeds the volume required for output products with certified claims.

For companies implementing mass balance, segre-gation requirements will not apply. The rules of the mass balance guidance document apply and shall be implemented by the company. Auditors will be reviewing volume inputs and outputs as well as documentation to ensure claims being made align with the product the company has purchased.

This criterion does not apply. Companies are not required to segregate and identify Rainforest Alli-ance Certified product when they are implementing the mass balance program.

Upon receipt of Rainforest Alliance Certified mass balance product, participating operators shall verify the volume to be received as Rainforest Alli-ance Certified as it could be less than 100 percent of the total volume included in the shipment.

continued on following page

Criteria 2.7The Participating Operator shall provide claim information to its customers, including: a. A copy of a Transaction Certificate(s) from the Rainforest Alliance or associated Transaction Cer-tificate number(s); or b. Supporting documentation (supply contracts, invoices, delivery documents, etc.) to indicate the Participating Operator’s claim for the product(s) sold; and c. When an unlabeled product is sold that contains less than 100 percent Rainforest Alliance Certified content, the Participating Operator shall indicate the certified percentage.

Criteria 4.1cNew sites must undergo an internal inspection before being included.

CoC Criteria Guidance for Mass Balance Operators

The Participating Operator making the sale should include a reference to Rainforest Alliance Certified mass balance material on commercial documenta-tion for the shipments. When a shipment is made for Rainforest Alliance Certified mass balance vol-umes that is less than 100 percent of the total ship-ment volumes, the total volume amount as certified shall be indicated on all associated documentation.

If the company is implementing a multi-site mass balance system through a central headquarter loca-tion, internal audits of multi-site members can be conducted via desk audit and review how volume transfers occur between sites and general account-ing/communication between sites and headquarters.

233 Broadway28th Floor

New York, NY 10279 Tel: 212/677-1900

Fax: 212/677-2187For more information about the Rainforest Alliance, please visit www.rainforest-alliance.org

Companies can also define conversion ratios with the approval of Rainforest Alliance.

CocoaCocoa Beans Cocoa LiquorCocoa Liquor Cocoa PowderCocoa Liquor Cocoa Butter

Coconut OilCoconut CopraCopra Crude Coconut OilCrude Coconut Oil Refined Coconut Oil (RBD)Crude Coconut Oil Refined Coconut Oil (Hydrogenated)

Oleochemical derivative products are excluded from the scope of MB at this time.

Palm OilFresh Fruit Bunches (FFB) Crude Palm OilFresh Fruit Bunches (FFB) Palm KernelsCrude Palm Oil Refined Palm OilCrude Palm Oil PFADPalm Kernels Palm Kernel OilPalm Kernels Palm Kernel ExpellerPalm Oil OleinPalm Oil StearinOlein Double Fraction OleinOlein Mid Fraction StearinStearin Mid Fraction OleinStearin Double Fraction StearinPalm Kernel Oil Refined Palm Kernel OilPalm Kernel Oil PKFADRefined Palm Kernel Oil PK OleinRefined Palm Kernel Oil PK Stearin

Oleochemical derivative products are excluded from the scope of MB at this time.

Orange JuiceFresh Oranges Soluble Solids

Soluble Solids All further processed products such as Not-From-Concentrate Juice (NFC) Juice, Frozen Concentrated Orange Juice (FCOJ) at a specified Brix, Pulp (cells), Pulp Wash, Pulp Wash Concentrate, etc.

Oranges sold as fruit are excluded from the scope of MB at this time. Actual juice yields for the period must be reported from first extraction together with average Brix values for the reported period. Supporting data files must be available documenting the reported averages. Corrected Brix must be declared for each outgoing product.

100 : 82100 : 50100 : 50

100 : 25100 : 62100 : 96100 : 96

100 : 20100 : 5100 : 95100 : 5100 : 45100 : 55100 : 80100 : 20100 : 65100 : 35100 : 65100 : 35100 : 95100 : 5100 : 65100 : 35

Actual Yield for the pe-riod expressed as a per-centage (Kg of Soluble Solids over Kg of Fresh Oranges) and resulting average Brix.

Actual Kg of Solids Used at the specified cor-rected Brix

Conversion Ratio

Appendix 2: Conversion Ratios