Blog Post
Book & Claim Chain of Custody Model
The "Book and Claim" chain of custody model is a flexible, administrative accounting framework designed to decouple the physical flow of materials or products from the transfer of specific attributes, such as sustainability benefits. Unlike traditional chain of custody models where the physical and administrative flows are linked, the book and claim system allows for the tracking, documentation, and transfer of certain product attributes independently of the actual products themselves.
This model is particularly useful in sectors like aviation and shipping, where it can be challenging to directly connect supply with demand due to geographic and logistical constraints.
In this model, producers can "book" the emissions savings or other environmental benefits of a good they've produced, and customers can then "claim" these benefits for their own sustainability goals or climate disclosures, even if they do not physically receive the specific batch of product associated with those benefits. For instance, a company can purchase sustainable aviation fuel (SAF) certificates that represent the lifecycle emissions reductions from the use of SAF, even if the specific flights or transport activities the company is involved with do not directly use the SAF linked to those certificates.
Book & claim makes scalability possible as it otherwise would be too daunting to match each cargo owner or packaging company to each transport vehicle or compounding/extruding plant. We have seen a similar evolution in the energy sector where it is impossible to separate energy sources that are piped into buildings. If however, one wants to power a home solely on renewable energy, agnostic of electricity source, one can buy RECs (renewable energy certificates) and claim the lower emission.
Advantages & Pitfalls of Book & Claim
One of the main advantages of the book and claim model is its flexibility and the low barrier to entry it offers, allowing for a broader participation in sustainability initiatives across different industries. It facilitates the expansion of markets for sustainable products by enabling companies to support sustainable practices and products through the purchase of certificates or Impact Units, even in cases where direct access to those products is not feasible.
However, it is important to be mindful of potential pitfalls. The separation of the attribute from the physical product means there is no direct physical traceability of the sustainable practice to the final product. This can lead to concerns about greenwashing if claims are not carefully verified and managed. Ensuring transparency, accountability, and rigorous certification standards is crucial to maintaining the credibility of sustainability claims made under a book and claim system, which is what CarbonLeap supports.
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