Segregation (chain of custody)

“Segregated means the characteristic is preserved, not the origin. ”

Segregation sits between identity preservation and accounting models. Eligible materials remain physically separate from non-eligible materials, but material from several eligible sources may be combined. The buyer receives material with the specified characteristic, although the exact source contribution to each unit may no longer be known.

ISO 22095:2020 describes a segregated model in which specified characteristics are maintained from input to output. Unlike identity preserved, the inputs need not come from one source. This distinction is easy to lose because both models use physical separation and may be described casually as fully traceable.

Consider a warehouse receiving certified cocoa from twenty cooperatives. The certified beans may be stored and processed together while remaining separate from conventional cocoa. The resulting output is physically certified under the scheme, but a particular bag of liquor cannot be attributed to one cooperative. A claim of certified segregated cocoa may be supported; a claim naming one farm may not.

The specified characteristic must be compatible across sources. A pool may combine material certified to the same scheme and level. If sources have different claims, grades or legal statuses, rules are needed to prevent the mixture from carrying the strongest label by default. Segregation preserves only the characteristics the system has defined and controlled.

Operational controls resemble identity preservation: dedicated storage, clear identification, line scheduling, cleaning, transport controls and records. The risk is not only deliberate substitution. Residual material in equipment, incorrectly labelled containers, returns and rework can introduce non-eligible content. Tolerance rules should be explicit rather than silently treated as zero or ignored.

Segregation can reduce cost compared with keeping each source separate. Larger batches improve logistics and processing efficiency, helping certified material reach mainstream markets. At the same time, pooling can weaken source-level relationships. Buyers may know the approved supplier group without knowing which producer contributed to the item they sell.

This affects due diligence and remedy. A segregated batch may be connected to a set of origins, allowing risk assessment and volume reconciliation. If a grievance arises, the system may need transaction and production records to narrow the source. Physical eligibility alone does not guarantee rapid source attribution.

Marketing language should distinguish source from characteristic. 'Made with segregated certified material' communicates physical content under the scheme. 'Sourced from Farm X' requires identity-preserved evidence. 'Supports certified production' may be more appropriate for a non-physical book-and-claim system. Using one phrase for all models hides material differences.

Segregation is also not proof that every relevant input is eligible. A finished product may contain many ingredients, components or packaging materials. The scope should identify which material is controlled and whether percentage thresholds apply. A logo can otherwise imply that the whole product has a status established only for one component.

Costs and benefits deserve attention. Separate logistics can increase price and create premiums, but they can also exclude regions without sufficient eligible volume or infrastructure. Grouping multiple sources can help smaller producers enter, provided governance and payment do not favour the largest suppliers.

The discipline is to preserve the characteristic without inventing source precision. Segregation offers a physical-content claim stronger than mass balance while allowing efficient pooling of eligible materials. Its credibility depends on compatible inputs, physical controls, reconciliation and wording that explains what remains known after mixing.

Practical application

Define the eligible characteristic, source pool, tolerance and scope. Map storage, transport, processing, cleaning, rework and subcontracting controls. Reconcile eligible input and output and test for substitution or contamination at risk points.

Use model-specific claims and avoid naming a single origin after eligible sources have mixed. Maintain transaction data sufficient to investigate affected suppliers. Review whether minimum volumes and infrastructure costs exclude smaller producers or shift cost unfairly.

Why it matters

Segregation allows organisations to offer products that physically retain specified characteristics without the cost of preserving every origin separately. It can expand certified supply while maintaining a clear boundary from non-eligible material.

Common misconception

Segregated is often used as a synonym for single origin or fully traceable. Material may come from many eligible sources and lose source-level identity once mixed. The model preserves the specified characteristic, not necessarily the contribution of each origin.

Connections

Identity preserved retains one source; mass balance permits mixing with non-eligible material under accounting rules. Chain of custody governs both. Traceability data can maintain a list of contributing sources even when physical source identity is no longer preserved.

A question worth asking

After eligible materials are pooled, which origin claims can your organisation still prove, and which have become assumptions carried forward by the label?

Selected references

ISO 22095:2020. Chain of Custody - General Terminology and Models. ISEAL Alliance. 2016. Effective Chain-of-custody and Traceability Models. Roundtable on Sustainable Palm Oil. Supply Chain Certification Standard. Marine Stewardship Council. Chain of Custody Standard: Default Version. Mol, A. P. J. and Oosterveer, P. 2015.

Certification of Markets, Markets of Certificates: Tracing Sustainability in Global Agro-food Value Chains. Sustainability 7(9): 12258-12278.

How it is used

The term appears in workplace policy, sourcing, human-rights due diligence, community engagement and supply-chain management, where employers, buyers, suppliers, governments, workers and affected communities use it to classify, assess or communicate A chain-of-custody model in which materials from multiple sources sharing specified characteristics may be mixed with one another but are kept physically separate from materials without those characteristics.

Its correct use depends on the affected population, supply-chain boundary, local context, timeframe and evidence from rights-holders.