Alternative Volume Reconciliation (VR2)

Introduction

Textile Exchange is committed to building credible, internationally recognized standards that include assurance and monitoring and evaluation systems. As a member of ISEAL, Textile Exchange follows three Codes of Good Practice in addition to its own procedures for Standard Setting, Accreditation and Certification. 

The Content Claim Standard (CCS) relies on batch-level segregation of certified products, for both 100% certified content and blended products. Textile Exchange recognizes that this model may not be implementable for sites that run continuous production processes with reclaimed or recycled material inputs and are unable to maintain batch level segregation. These sites are typically first processors in the textile supply chain and their inclusion presents an opportunity for meaningful positive impacts through larger volumes. 

Textile Exchange’s approach to alternative volume reconciliation (VR2) can be found in the CCS-105-V3.0 Alternative Volume Reconciliation (VR2) policy. This policy goes into effect April 1st, 2022. It details the eligibility criteria and requirements for the use of alternative volume reconciliation by organizations that meet eligibility criteria. VR2 criteria provide an option for mass balance credit accounting at the level of an individual site. Alongside the policy, Textile Exchange is releasing a Feedback Summary document, which summarizes feedback received by themes during the open feedback period as well as Textile Exchange responses on how the feedback was addressed in the released policy.

Background

Following feedback during the most recent revision of the Content Claim Standard, Textile Exchange initiated a pilot project to explore the possibility of allowing the use of site-level mass balance to account for chemical recycling processes within the CCS. The pilot criteria were created based on best practices and upon review of other certification systems.

In the pilot project, Textile Exchange limited the scope to RCS, GRS, and CCS claims. Textile Exchange did not consider RDS, RAF, and OCS claims. The pilot ran from January 2021 to March 2021 with three participants. 

The CCS 3.0 was released with an effective date of July 1, 2021, with the hope to release the mass balance policy shortly thereafter. We heard a lot of feedback on the first draft of CCS-105-V1.0 Alternative Volume Reconciliation which highlighted fairly quickly that more research and guidance would be needed to implement an approach to alternative volume reconciliation. We pulled new learnings into and collected more feedback on the revised DRAFT-CCS-105-V1.1 Alternative Volume Reconciliation (VR2)  in December 2021 and January 2022. We used the feedback received during this period to finalize our approach to volume reconciliation which can be found in CCS-105-V3.0 Alternative Volume Reconciliation (VR2) accompanied by a Feedback Summary

We will continue to learn about alternative volume reconciliation and update this policy as needed. The next release date of an updated policy is not yet determined.