Certified sustainable palm oil does not move from plantation to factory in a single clean stream. It is mixed, stored and shipped alongside conventional material at almost every stage. To let buyers make credible claims despite this, the Roundtable on Sustainable Palm Oil recognises four supply-chain models. Each describes how certified and non-certified material are kept apart, or not, and what a buyer may say about the finished product.
Identity Preserved Identity Preserved (IP) is the strictest model. Certified oil is kept physically separate from non-certified oil along the entire chain, and the buyer can trace it back to a single mill and its supply base. Because every step must be segregated and documented, IP volumes are limited and usually carry the highest cost and administrative burden. It suits buyers who need full traceability to origin, such as some food and personal-care brands making specific origin claims.
Segregated Segregated (SG) also keeps certified oil physically separate from conventional oil throughout the chain, but certified material from multiple sources may be mixed together. The buyer knows the oil is certified but not which specific plantation it came from. Segregated volumes are more widely available than IP and cost less, while still supporting an on-product claim that the oil is certified.
Mass Balance Mass Balance (MB) allows certified and non-certified oil to be mixed physically, with the certified share tracked administratively through the supply chain. At any point, the volume of certified product sold cannot exceed the volume of certified material purchased. MB is the most widely used model because it works with existing bulk handling and storage, making it the practical entry point for many buyers. On-product claims under MB must be worded carefully, since the physical oil in the pack may not itself be certified.
Book & Claim Book & Claim (B&C), also called certificates or credits, separates the sustainability attribute from the physical oil entirely. Buyers purchase tradable certificates representing certified production, without any physical link to the oil they receive. It is the simplest and often cheapest way to support certified production, but it supports no on-product claim about the physical ingredients. It is often used by buyers with limited certified supply in their region or by those supporting certification at scale.
Choosing a model - Traceability needs: IP offers the most, B&C the least. - Cost and complexity: generally rise from B&C through MB and SG to IP. - On-product claims: IP and SG support physical claims; MB claims are conditional; B&C supports none. - Supply availability: MB and B&C are typically the most available.
For first-time buyers, the practical route is to match the model to the claim you intend to make and the supply your suppliers can actually deliver. Procurement teams often start with MB or B&C and move toward SG or IP as volumes and requirements grow.