Lecture 11

Question 1

Lecture 11: Chain of Custody & Legal vs. Voluntary Standards

Main Topics:

Answer 1

1. Chain of Custody (CoC) Models
2. Use of VSS by Various Stakeholders
3. Co-regulation: Intersection of Private Certification and Government Regulations
4. EU Green Claims Directive

Question 2

What are the four main Chain of Custody models?

Answer 2

1. Identity Preservation: Ensures complete traceability (strictest).
2. Segregation: Keeps certified and non-certified materials separate.
3. Mass Balance: Mixes certified and non-certified materials but tracks proportions.
4. Book & Claim: Uses a credit-trading system without direct traceability​

Question 3

What are the advantages of private certification over government regulation?

Answer 3

• More flexible and innovative
• International reach
• Often multi-stakeholder approaches

Question 4

What are the key weaknesses of private certification?

Answer 4

• Lack of government legitimacy
• Voluntary nature with limited enforcement
• Costly and labor-intensive audit processes

Question 5

How does the EU Green Claims Directive combat greenwashing?

Answer 5

It ensures companies substantiate sustainability claims with transparent and verified data, preventing misleading environmental advertising​

Question 6

What are the three forms of co-regulation in sustainability standards?

Answer 6

• Tool for implementation: Governments use private certification in policy.
• Test Tube: Private standards act as trial runs before legal adoption.
• Supporting implementation: Governments facilitate voluntary adoption