Generally, the purpose of the certification schemes is to:
- reduce the negative impacts of the production, distribution and sale of commercial goods
- provide consumers with clear choices based on their ethical concerns
- differentiate certified products or companies.
The Ministry of Economic Development website has a section on ‘ecolabels’, which includes an extensive list of the schemes currently operating.
Why use ecolabels?
Ecolabels can help your export business:
- improve its corporate social responsibility (CSR) strategy by monitoring the operations environmental and social impact
- select sustainable businesses and suppliers to partner with
- market your products and company to the growing number of ‘conscious consumers’
- support continued growth in these markets
- create a premium price for your products, based on their certification.
Without certification:
- it is much harder to prove your sustainability credentials and draw benefits from them
- your company or product may be denied access to some specialist markets and government procurement schemes.
The difference between claiming and certifying
The various certification schemes have different levels of monitoring and auditing.
The International Organization for Standardization (ISO) splits them into three main types, in descending order of rigorousness and credibility:
Type 1: ecolabel
Independently audited ecolabels that meet ISO 14024. They provide a "seal of approval", and issue a licence to use their ecolabel logo on products or services that meet the programme’s published specifications.
Type 2: environmental claim
Claims made by companies themselves that meet the requirements of ISO 14021, covering the use of particular words and symbols and specific requirements about accuracy, relevance, explanation and substantiation/verification of claims.
Type 3: environmental declaration
These are eolabels that meet ISO 14025 on principles and procedures. They provide 'eco-profiles' or 'report cards' allowing buyers to compare the performance of competing products. They are based on publicly available product category rules, operated by third parties and involve independent audits.
To an extent the value of certification to your business depends on how well known that label has become in your export market, or internationally.
Ultimately, its usefulness depends on its credibility and its rigour.
Avoiding greenwash
One of the other key roles for certification schemes is to combat greenwash: unsubstantiated environmental and/or ethical marketing claims. As the sustainable market place has grown, so has greenwash, undermining consumer trust and business efforts on sustainability.
Using internationally recognised labelling schemes is the best way to avoid greenwash and ensure your company gains full benefit from its efforts to be more sustainable.
Rules on ethical, environmental and sustainable marketing in New Zealand
It is important that your company complies with similar regulations in overseas markets. Being found in breach of these codes can be extremely expensive and damaging to your company.
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