ISCC Licensing Scheme for Brand Owners

1© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

ISCC Licensing

Scheme for

Brand Owners

2© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

Advantages of the ISCC

licensing scheme

• Third-party verification is an effective and proven way

for brands to increase consumer trust

• Tailor-made solution for brand owners – no audit

necessary to receive a license

• With a valid license brand owners can communicate

and use ISCC logos and claims (on- and off-

product) in a credible way

• ISCC certification will become known among

consumers which benefits brand owners

• ISCC can protect its integrity, because brand

owners at the end of the supply chain are covered

under an ISCC license agreement

• The license database will increase credibility and

transparency towards NGOs and the general public

3© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

The ISCC licensing scheme only applies to companies at

the downstream end of the supply chain

• The licensee receives an

ISCC certified final product

that

• is filled or packed by the

licensee AND

• cannot be fundamentally

altered by the licensee

• The supplier of the ISCC

certified final product

• holds a valid ISCC certificate

at the time of delivery AND

• issues ISCC Sustainability

Declarations for each batch

of delivery to the licensee

• The licensee is

• a brand owner at the end of

the supply chain under whose

brand name the finished good

goes into the market OR

• a retailer that would like to

actively advertise ISCC

finished goods

4© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

Is a license applicable for

my company?

5© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

My company is a brand

owner and receives an ISCC

certified

finished good/packaging from

an ISCC certified entity.

Yes

License not applicable

– Certification needed

My company will (also)

communicate on-product and

the supplier prints the ISCC

logo on the ISCC certified

finished good/packaging.

License is applicable.

At least one of the following

applies to our production process:

• Minimum 1,5% scrap

• Chemical modification of the ISCC

certified material (other than sealing)

• Forming

• Laminating

• Cutting films on a roll

License not applicable

– Certification needed

My company transfers and/or attributes

sustainable shares across several

outputs

( à mass balance calculations necessary)

License not applicable

– Certification needed

The amount of certified incoming

material and certified outgoing

finished goods/packaging is

verifiable and documented.

License is applicable.

License not applicable

– Certification needed

Yes

Please note that the decision tree only provides guidance as to whether a license could be possible. ISCC reserves the right at all times not to

grant a license and to require certification if there is any uncertainty that a certification is needed to ensure traceability along the supply chain.

My company will

communicate off-product

only.

License is applicable.

Yes

My company wants to make

ISCC related claims.

License and/or certification is

not necessary

Decision tree

Yes

6© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

Applicable license set-up - example 1: The brand owner receives certified finished

good/packaging with the ISCC on-product logo and/or on-product claim

License

7© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

Applicable license set-up - example 2: The brand owner only promotes the use of

ISCC certified finished good/packaging via external communication channels (website,

social media, etc.)

License

8© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

Applicable license set-up - example 3: The brand owner prints the ISCC on-product

logo and/or claim on the certified finished good/packaging or on an additional packaging

Brand Owner

Printer

Filler

License

9© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

How does the licensing

scheme work?

10© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

The license agreement consists of a master agreement and

(several) individual agreement(s)

master

agreement

individual

agreement(s)

The master agreement includes all legal clauses of the ISCC licensing scheme.

The contract can be set on a global or regional level or a specific

division/business unit. It is up to the company how to set up the license

responsibilities and depends on their corporate structure. Preferrably, it should be

signed by the responsible person, who has an overview of all brands that market

ISCC certified material.

Brand A

• License number

• Authorized signatory

• Licensed brand

• Compliant material

• Finished goods

• Effective date

• Contractual territory

• License fee

For each brand that markets ISCC

certified material, an individual agreement

needs to be drawn up. It sets forth all the

relevant information regarding the

licensed brand and certified finished

good/packaging in the contractual

territory. The contractual territory could be

global, regional or country-specific – this

is up to the licensee and should be

signed by the brand responsible. The

number of products is not limited.

Brand B

• License number

• Authorized signatory

• Licensed brand

• Compliant material

• Finished goods

• Effective date

• Contractual territory

• License fee

11© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

Example: master agreement per global headquarter

Background info:

The global company DairyLove has multiple brands MilkLove, YoghurtLove and CheeseLove. They would like

to receive an ISCC license for several finished goods of the brand MilkLove for the European Market and of

the brand YoghurtLove for the Mexican and US market, in order to be allowed to print the ISCC on-product

logo on ISCC certified finished goods.

master agreement

signed by DairyLove global headquarter responsible

individual agreement

• Licensed brand: MilkLove

• Contractual territory: Europe

• Licensed fee: based on the annual turnover

of MilkLove in the European market

individual agreement

• Licensed brand: YoghurtLove

• Contractual territory: Mexico, US

• Licensed fee: based on the sum of the

annual turnover of YoghurtLove in the

Mexican and the US markets

12© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

Example: master agreement per region 1

Background info:

The global company DairyLove has multiple brands MilkLove, YoghurtLove and CheeseLove. They would like

to receive an ISCC license for several finished goods of the brand MilkLove for the European Market and of

the brand YoghurtLove for the Mexican and US market, in order to be allowed to print the ISCC on-product

logo on ISCC certified finished goods.

master agreement

signed by DairyLove Europe responsible

individual agreement

• Licensed brand: MilkLove

• Contractual territory: Europe

• Licensed fee: based on the annual turnover of

the MilkLove for European market

individual agreement

• Licensed brand: YoghurtLove

• Contractual territory: Mexico, US

• Licensed fee: based on the sum of the

annual turnover of the YoghurtLove in the

Mexican and the US markets

master agreement

signed by DairyLove North America responsible

13© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

Example: master agreement per region 2

Background info:

The global company DairyLove has multiple brands MilkLove, YoghurtLove and CheeseLove. They would like

to receive an ISCC license for several finished goods of the brand MilkLove for the European Market and of

the brand YoghurtLove for the Mexican and US market, in order to be allowed to print the ISCC on-product

logo on ISCC certified finished goods.

master agreement

signed by DairyLove Europe responsible

master agreement

signed by DairyLove North America responsible

individual

agreements

...

for MilkLove

in different

markets

individual agreement

• Licensed brand: MilkLove

• Contractual territory: Spain

• Licensed fee: based on the

annual turnover of the MilkLove

for Spanish market

individual agreement

• Licensed brand: MilkLove

• Contractual territory: Germany

• Licensed fee: based on the

annual turnover of the MilkLove

for German market

individual agreement

• Licensed brand: YoghurtLove

• Contractual territory: Mexico, US

• Licensed fee: based on the sum of the annual

turnover of the YoghurtLove in Mexican and

the US markets

14© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

Example: master agreement per division

Background info:

The global company FairCare covers the babycare sector with various brands (HappyBaby, WellBaby, etc.) as

well as the food sector with various brands (Chocolatery, BreadStar, etc.) globally. They would like to receive

an ISCC license for several finished goods of the brand HappyBaby for the European Market and of the

brand BreadStar for the Asian market, in order to be allowed to print the ISCC on-product logo on ISCC

certified finished goods.

master agreement

signed by FairCare babycare responsible

individual agreement

• Licensed brand: HappyBaby

• Contractual territory: Europe

• Licensed fee: based on the annual turnover of

HappyBaby for the European market

individual agreement

• Licensed brand: BreadStar

• Contractual territory: Asia

• Licensed fee: based on the annual turnover of

BreadStar for the Asian market

master agreement

signed by FairCare food responsible

15© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

Licensees can add more brands into their ISCC

portfolio easily

Q: Is the new brand part of the structure of the company that signed a master agreement?

• Yes à The licensee can add an individual agreement for the new brand under the existing master

agreement

• No à The licensee needs to sign a new set of master agreement and individual agreement for

the new brand

16© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

Updates/Additions in individual agreement(s)

Brand Owners can update/add the following information within the individual

agreement anytime after the license agreement is valid:

• Compliant material

• Finished goods + effective date

• Contractual territory + license fee (depending on annual turnover)

How does the update work?

1. Licensee sends the updates/additions via e-mail to [email protected]

2. After internal review, ISCC will send an updated schedule of the individual agreement to the

licensee as a confirmation à no additional signature needed

3. Integration of updates/additions in the license database after the agreed-upon effective date

17© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

How does the licensing

application work?

18© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

Licensing application process

1 2 3 4 5

Application ISCC Review

License

Agreements

License

Database

Annual report

on sales

The company

applies for the

licensing

scheme on the

ISCC website

ISCC will

internally

review the

request and

may ask for

additional

information

ISCC sends

the master-

and individual

agreement(s)

to the licensee

to be signed

The finished

goods of the

licensee will be

published in

the license

database. The

licensee is

allowed to use

the ISCC logo

(upon approval

by ISCC!)

The licensee

reports its amount

of certified

incoming material

and certified

outgoing finished

good/packaging

to ISCC annually

1) Application process

§ Brand owners can apply for the licensing

scheme by filling in a form on the ISCC website

§ The following information must be provided:

• General information about the brand owner and the

ISCC contact person

• Brand- and product-related information (e.g.

contractual territory, brand and product name)

• Information about the ISCC certified material (e.g. the

type of material, the composition), the supply chain

set-up and the potential logo use

Click here for the form

2) ISCC review and

3) License agreements

§ ISCC will review the application internally and

may ask for additional information

§ The license agreements will be filled in by

ISCC. Depending on the information already

available, the schedules of the individual

agreement will be filled in by the licensee

• The master agreement will include all the legal

terms

• The individual agreement will include all the

product- and brand-related information

4) License Database

§ All licensees appear in the license database after the effective date

§ The license database enables the verification of the correct use of the ISCC logos and/or claims

and strengthens the credibility for end consumers

Example

5) Annual reporting

§ The licensees have to report on the certified incoming materials and certified outgoing finished

goods/packaging on an annual basis (01.Jan. /effective date – 31.Dec.)

§ The annual reporting deadline is 31. March for the previous year

ISCC License Fees

Annual license fees

Annual turnover*

(in Euro)

Fees per license

agreement

Fees per license agreement

(ISCC e.V. members)

< 10 Million 1,500 € / year 1,200 € / year

< 50 Million 2,500 € / year 2,000 € / year

< 250 Million 4,000 € / year 3,200 € / year

< 500 Million 6,500€ / year 5,200 € / year

< 1 Billion 10,000 € / year 8,000 € / year

< 2 Billion 15,000 € / year 12,000 € / year

< 4 Billion 20,000 € / year 16,000 € / year

< 7 Billion 25,000 € / year 20,000 € / year

< 10 Billion 30,000 € / year 24,000 € / year

> 10 Billion 35,000 € / year 28,000 € / year

Fee calculation

*The license fee is charged per individual

agreement, based on the annual turnover of the

entire licensed brand in the contractual territory.

ISCC license fees – example 1

Master agreement with DairyLove

Annual turnover of MilkLove in

Europe is 150 million

Individual

Agreement for

Brand

MilkLove

The individual

agreement

applies in

Europe

Not a member

of the ISCC

association

(ISCC e.V.)

Annual license fees

Annual turnover

(in Euro)

Fees per license

agreement

Fees per license

agreement

(ISCC e.V. members)

< 10 Million 1,500 € / year 1,200 € / year

< 50 Million 2,500 € / year 2,000 € / year

< 250 Million 4,000 € / year 3,200 € / year

< 500 Million 6,500€ / year 5,200 € / year

< 1 Billion 10,000 € / year 8,000 € / year

< 2 Billion 15,000 € / year 12,000 € / year

< 4 Billion 20,000 € / year 16,000 € / year

< 7 Billion 25,000 € / year 20,000 € / year

< 10 Billion 30,000 € / year 24,000 € / year

> 10 Billion 35,000 € / year 28,000 € / year

The license fee for the individual agreement is 4,000 € / year

ISCC license fees – example 2

Master agreement with FairCare food

Annual turnover of the

BreadStar in Asia is 750 million

The License

Agreement

applies in

Asia

Member of

the ISCC

association

(ISCC e.V.)

License fee for the individual agreement is 8,000 € / year

Individual

Agreement for

Brand

BreadStar

Annual license fees

Annual turnover

(in Euro)

Fees per license

agreement

Fees per license

agreement

(ISCC e.V. members)

< 10 Million 1,500 € / year 1,200 € / year

< 50 Million 2,500 € / year 2,000 € / year

< 250 Million 4,000 € / year 3,200 € / year

< 500 Million 6,500€ / year 5,200 € / year

< 1 Billion 10,000 € / year 8,000 € / year

< 2 Billion 15,000 € / year 12,000 € / year

< 4 Billion 20,000 € / year 16,000 € / year

< 7 Billion 25,000 € / year 20,000 € / year

< 10 Billion 30,000 € / year 24,000 € / year

> 10 Billion 35,000 € / year 28,000 € / year

Thank you!

ISCC System GmbH

Hohenzollernring 72, 50672 Cologne, Germany