In the UK, a new report just released has set out the best
practices that firms should follow as they aim to develop
and adopt new eco-labels for promoting the environmental credentials
of their products.
The study - which came on the same day as supermarket giant
Tesco announced it is to launch a trial of carbon labels showing
the carbon footprint of a number of its products (Click
Here) - argues that, with environmental labels such
as organic or FSC certification marks becoming increasingly
prominent, marketing departments should be careful about which
labels they use and how they fit into their overall sustainability
strategy.
Developed by UK charity - Forum
for the Future - and US consultancy Business
for Social Responsibility (BSR), the free guide sets
out a number of best practices that firms should follow when
adopting eco-labels. In particular, it recommends that companies
seek independent verification for any labelling scheme, work
with competitors to shape industry-wide rules governing labelling
standards and ensure that any adoption of eco-labels fits
into a wider environmental strategy.
"It's not just about slapping a label on a packet"
- insisted Tom Berry, head of retail at Forum for the Future.
"Understanding the true environmental credentials of
your products and communicating these to consumers can be
a source of innovation and competitive advantage."
The report also warns firms that adopting green labels on
just one or two products in a larger portfolio can serve to
invite criticism of the firm from environmentally conscious
consumers.
'Claiming environmental credentials for one 'hero' product
in a portfolio of 'villains' is a high-risk strategy'
- the report claims. 'Once the spotlight moves to the rest
of the portfolio, serious questions will tend to be asked
about corporate integrity. Similar concerns apply to certifying
one ingredient out of many or just the packaging rather than
the whole product.'
The report advises that a useful defence against such criticism
is to highlight plans to improve the entire portfolio over
time - but warns that, without this context 'any eco-promise
may seem rather hollow'.
It also argues that firms should use the adoption of eco-labels
as the starting point for a more comprehensive overhaul of
their product portfolio that results in them 'choice editing'
- removing products that are not environmentally sustainable.
The report argues that, while axing non-green products may
be a relatively new phenomenon, many retailers already have
processes in place that could be used to enable wider choice
editing. Retailers already use complex category-management
specifications and buying criteria to edit customer
choices - by excluding blemished or misshapen fruit and vegetables
from sale, for example, the report notes.
'Choice editing for sustainability is an obvious next
step - but will need industry-wide collaboration to ensure
common standards" - it adds.
To download the report - Eco-promising: communicating
the environmental credentials of your products and services
- Click
Here
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