Blockchain-based Mass Balance for Sustainable Materials
Sector: Secondary sector · Industry: Chemical industry · Organisation: ISCC, Circularise · Maturity level: Pilot
ISCC and Circularise piloted a blockchain system with 10 companies to enhance mass balance certification of sustainable materials in the chemical industry. The system uses public blockchain technology with smart contracts for tamper-proof storage of material flows and automated rule verification. The pilot project was successfully completed in 2022 and demonstrated practical applicability for global supply chains from biofuels to household appliances.
Documentation status
- Project status: Pilot
- Evidence: Evidence high
- Editorial review: Ufuk Avci, 15 April 2026
Description
ISCC Plus is a chain-of-custody certification scheme for biogenic and circular chemicals and plastics. The mass balance principle allows sustainable raw materials to be blended into existing production processes and the sustainability share to be passed along the supply chain — without physical separation. Circularise used a public blockchain (not a private consortium blockchain), making it virtually impossible for companies to reuse sustainability proofs. Mesbah Sabur, founder of Circularise: "Now companies no longer have to maintain their credits individually in Excel spreadsheets."
On 13 September 2022, Circularise published the results of a pilot project with ISCC Plus and 10 companies for the first time: Neste, Asahi Kasei, Borealis, Trinseo and Shell as material suppliers; Arcelik, Philips Domestic Appliances and EVBox as OEMs and brands; Marubeni and Itochu as trading companies. The project was initiated by Circularise and Marubeni. Technically: mass balance credits are managed via smart contracts on a public blockchain — instead of Excel spreadsheets at each individual actor. Every transaction is fully traceable; auditors can access the blockchain directly. The use of a public rather than private blockchain is deliberate: it makes it virtually impossible to reuse sustainability proofs. According to the project report: participants were able to deepen their knowledge, align internal processes with ISCC Plus requirements and easily share mass balance credits across companies. Jan Henke, ISCC: "Certification will become more digital in the future. This enables certification schemes to simplify the auditing process and reduce the risk of errors."
Perspectives
B2B — organisations perspective
Chemical and plastics companies with ISCC Plus certification can digitally transfer mass balance credits without maintaining their own Excel records. Downstream customers such as Borealis or EVBox gain direct visibility of their suppliers' sustainability proofs.
B2C — consumers perspective
End consumers receive more reliable information about the sustainability of products such as household appliances or fuels through improved transparency. Blockchain technology enables seamless traceability of sustainable materials to the end product.
Employees perspective
Sustainability and compliance teams are relieved from manual Excel mass balance management and complex documentation transmission to supply chain members — through automated smart contract-based bookkeeping.
Benefits
General
- Automating mass balance rules through smart contracts significantly reduces manual errors and accelerates audit processes.
- Tamper-proof data storage increases trust in sustainability certifications and strengthens market position.
- Standardised data formats improve collaboration between different actors in the supply chain.
B2B — organisations
- Companies can increase their profitability through more efficient audits and reduced compliance costs.
Employees
- Professionals can focus on strategic sustainability analyses instead of time-consuming manual data checks.
Challenges
General
- One of the biggest challenges is awareness and understanding of mass balancing in the plastics and chemical industry.
- Integration with existing ERP systems and certification platforms requires significant technical expertise and investment.
B2B — organisations
- Companies must adapt their internal processes to ISCC Plus standards and encourage all supply chain partners to participate.
Employees
- Employees need training both in blockchain technology and the specific requirements of mass balance certification.
Technology foundation
The system is based on a public blockchain with the Circularise software platform, which enables authentication, decentralisation and encryption of data on material flows. Smart contracts automate the storage of balances, recording of transactions and application of mass balance rules, thereby reducing manual checks and simplifying audit processes.
Implementation examples
ISCC-Circularise blockchain pilot project
The companies involved wanted to make their audit processes more efficient and strengthen the credibility of their sustainability claims. At the same time, sources of error in manual mass balance accounting were to be eliminated.
10 companies from across the entire value chain jointly tested a blockchain system to complement the ISCC Plus mass balance certification.
The pilot project included material suppliers such as Neste, Shell, Asahi Kasei, Borealis and Trinseo, OEMs and brands like Philips Domestic Appliances, Arcelik and EVBox, as well as traders such as Marubeni and Itochu. The participants tested blockchain-based accounting of mass balance credits and the automated application of ISCC Plus rules. The project deepened understanding of mass balancing and aligned internal processes with certification requirements.
The project addressed the complexity of material flow tracking in global supply chains and the challenges of data integrity. It also closed knowledge gaps regarding mass balancing in the industry.
Tags
Mass balancing, Sustainability certification, Supply chain transparency, Smart contracts, ISCC Plus