evolution of the topic, FMC suggests individual member companies contribute their insights and perspectives as well (e.g., commenting on draft principles from third parties, engaging in pilot programs and working groups). Definition Chain of custody models are, “the processes by which inputs and outputs and associated information [including environmental claims] are transferred, monitored and controlled as they move through each step in the relevant supply chain. ISO, 22095: 2020 These chain of custody models include4: Non-mixed – Identify preserved: “The materials or products originate from a single source and their specified characteristics are maintained throughout the supply chain” – Segregated: “Specified characteristics of a material or product are maintained from the initial input to the final output” Mixed – Controlled blending: “Materials or products with a set of specified characteristics are mixed according to certain criteria with materials or products without that set of characteristics resulting in a known proportion of the specified characteristics in the final output”. – Mass balance: “Materials or products with a set of specified characteristics are mixed according to defined criteria with materials or products without that set of characteristics” – Book & claim: “The administrative record flow is not necessarily connected to the physical flow of material or product throughout the supply chain”. FMC Guidance on mixed chain of custody models Decisions made within the transport sector regarding alternative chain of custody approaches can also be applied to the transport-related emissions of materials in other FMC sectors such as steel and aluminium. This promotes consistency across sectors and reflects the interconnected nature of supply chains. An overview of which CoC model is allowed in which sector can be found here. Across all sectors above, the use of offsets5 can not be used to meet FMC commitments. Please note that mixed chain of custody models are not applicable to the Carbon Dioxide Removals (CDR) sector. Note: this document is subject to revisions/updates. 4 ISO, 22095: 2020. 5 Carbon offsetting is, “a mechanism used to compensate for corporate [or individual] carbon footprints through the purchase of carbon credits issued by accreditation standards to projects that remove GHG emissions from the atmosphere or avoid generating the emissions in the first place” (ICROA).

FMC Statement 2025