Mass Balance
Please note that this specification is suitable for pre-production pilot implementations.
Overview
Chain of custody refers to the documented, end-to-end record of how a product or material moves and is transformed from origin to final use. Its purpose is to provide traceability and integrity, proving where something came from, what happened to it, and who was responsible at each step. There are several well-understood chain of custody models, each balancing operational practicality against assurance strength:
| Model | Physical Separation | Claim Strength | Description |
|---|---|---|---|
| Identity Preserved | Strict (single source) | Strongest | Exact certified source remains unblended throughout the chain |
| Segregated | Strict (certified only) | Strong | Certified materials from multiple sources may be combined but never mixed with non-certified |
| Mass Balance | Mixing allowed | Moderate | Qualifying and non-qualifying materials may be mixed; output claims limited to qualifying input proportions |
| Book and Claim | Fully decoupled | Market-driven | Sustainability attributes traded as credits, independent of physical product flow |
This page focuses on the mass balance model, which is the most common approach for bulk commodities and complex supply chains where physical segregation is impractical or cost-prohibitive. Book and Claim is covered in a separate page.
Challenges
The transparency graphs page describes how data in UNTP credentials can be assembled to construct a verifiable digital twin of a supply chain — linking products to the facilities that made them and, via traceability events, to the upstream materials used in manufacturing. However, it does not address how to verify that the sustainability claims on output products are actually supported by the input materials and production processes. This is the domain of mass balance chain of custody.
Are Output Claims Matched by Inputs?
Consider these concrete scenarios:
- Organic cotton fabric — A buyer purchases certified organic and fair-work cotton fabric from a weaver. The weaver can show evidence of some upstream purchases of certified raw cotton. But how can the buyer be sure that the fabric does not include mixed non-compliant cotton? If the weaver buys 40% certified organic cotton and 60% conventional, only 40% of output fabric should carry the organic claim.
- Low-carbon steel — A buyer of low-carbon steel products needs confidence that the claimed emissions intensity is matched by purchases of low-emissions ore by the refiner. If the refiner blends ore from multiple sources with different carbon footprints, the output emissions claim must reflect the weighted average of actual inputs, not a cherry-picked best case.
- Certified mineral sourcing — A copper smelter claims that its refined copper comes from 100% certified mines. But does the smelter actually source sufficient certified copper concentrate to back that claim across all its output, or is it re-using certificates from a small certified supply to cover a much larger uncertified volume?
More generally, the challenge is to verify that the totality of output performance claims from a facility are matched by input material and production process performance metrics. Mass balance fraud happens when actors buy small quantities of high-integrity inputs but claim much larger volumes of sustainable outputs. Without facility-level material accounting, this is undetectable.
Commercial Confidentiality
A further and very important constraint is that, for a buyer to satisfy themselves that their supplier has appropriate mass balance controls, the buyer would need full visibility of all facility inputs, outputs, and production processes — including supply volumetrics, yield rates, and stock levels. This data is almost always commercially sensitive. Facilities will not publish their production volumes, supplier relationships, or material accounting ledgers for competitors to see.
This creates a fundamental tension: mass balance verification requires comprehensive facility-level data, but that data is too commercially sensitive to share openly. Any viable solution must resolve this tension — enabling trustworthy verification without requiring public disclosure of commercial secrets.
Solution
UNTP addresses the mass balance challenge through facility-level material accounting anchored in the same credentials used for transparency graphs, combined with privacy-preserving audit mechanisms that resolve the confidentiality tension.
Facility-Level Material Accounting
UNTP material accounting follows the same fundamental logic as financial accounting:
| Financial Accounting | UNTP Material Accounting |
|---|---|
| Chart of accounts | Digital Product Passports (DPPs) describe characteristics and intensity metrics of identified input and output materials |
| Balance sheet | Digital Traceability Events (DTEs) with bizStep "stocktake" record material stocks at a point in time |
| Ledger transactions | DTEs with bizStep "shipping" or "transformation" account for input/output flows and production runs |
| Audited accounts | Digital Conformity Credentials (DCCs) carry independently audited conformance and verified intensity metrics |
| Facility conformity | Digital Facility Records (DFRs) carry facility-level conformity claims, certifications, and quality metrics |
The core principle is conservation:
Opening stock
+ inbound flows
- outbound flows
± production transformations
= closing stock
This applies to mass, volume, or count and forms the foundation for all higher-level sustainability claims. Just as double-entry accounting makes financial fraud difficult by requiring transactions to balance, material accounting makes greenwashing difficult by requiring physical quantities to reconcile.
It is worth noting that the accounting analogy, whilst valuable, may imply an accuracy that exists in financial accounting but does not in material accounting, and even less in impact accounting. Material stocks and flows must allow for waste and losses, and emissions intensity calculations must allow for inaccuracies in reported intensities. UNTP allows for claims and assessments to report metrics together with an estimate of accuracy.
Supporting All Production Models
Industrial processes fall into three broad categories, each producing a different but conceptually equivalent type of production record:
- Discrete Manufacturing produces individually serialised items (vehicles, machinery, electronics). The canonical record is the as-built record documenting actual components and processes for a specific serialised product.
- Batch Manufacturing processes identified inputs to produce identified outputs via discrete production batches (food processing, chemicals, refining). The canonical record is the batch record.
- Continuous Production produces a stream of output materials from a continuous stream of inputs (mining, oil production, bulk chemicals). The boundary is typically a time period, and the canonical record is the production run record.
All three record types are specialisations of a production record and differ only in how boundaries are defined (serial number, batch ID, or time window). All are represented as transformation event DTEs with quantity inputs and outputs.
Separating Facts from Policy Claims
This approach separates underlying material accounting (facts about what physically happened) from policy-driven claims (assertions about sustainability attributes). This separation allows the same material accounting facts to support different chain of custody assessments. For example, when a facility records input material identity and quantity for every production run, the same records support:
- Segregated chain of custody — if all inputs for a given run meet the policy criteria claimed for the output
- Mass balance chain of custody — if the average of all inputs to multiple production runs matches the average of all outputs over a given period
The same separation facilitates multiple impact assessments from the same data. For example, given a shipment of 100 tonnes of copper ore with a DPP stating 2 tCO₂e/tonne ore and 25% copper concentration, the emissions intensity per tonne of contained copper is 2 ÷ 0.25 = 8 tCO₂e/tonne Cu.
Aligning with Natural Industrial Processes
UNTP does not require facilities to change their manufacturing processes or record-keeping systems. No UNTP credential should carry information not reasonably available in production management systems at the time of issue:
- Material flows between facilities are recorded using shipping manifests — logistics-level flow records that production management systems already create.
- Production runs record consumption of inputs and creation of outputs — data that all production management systems maintain.
- Facility stocks record point-in-time inventory — running balances verified via periodic physical stock-takes.
- Product records define characteristics and intensity metrics of identified material types.
UNTP credentials map naturally to these records: DTEs carry flow information (shipping, transformation, stocktake events), DPPs carry material characteristics and intensity metrics, and DFRs carry facility-level conformity claims.