# Eco-labels Overwhelming Business Plus Consumers

- Link: https://greenlivingguy.com/2012/08/eco-labels-overwhelming-business-plus-consumers/
- Published: 2012-08-31T13:31:09-04:00
- Author: greenlivingguy

_Lausanne, Switzerland, August 10_ – The practice of eco-labelling may be on the
brink of saturation point and is becoming as confusing for companies as it is for
consumers, a major new study has warned.

Joint research by IMD, the International Institute for Management Development, and
EPFL, the Ecole Polytechnique de Lausanne, suggests the process has become so fragmented
that the current industry perception is dominated by wide-ranging reappraisal.

Germany’s Ministry of the Environment introduced the world’s first eco-label, the
Blue Angel, in 1978 to highlight products’ environmental and sustainability credentials.
Now well over 400 are used across 25 industries, prompting growing concerns over
proliferation, credibility and consumer understanding.

IMD and EPFL researchers surveyed more than 1,000 executives around the globe about
their attitudes towards eco-labels.

IMD Professor Ralf Seifert, the study’s co-author, said: “It’s not just consumers
who are confused. Selecting an eco-label has become a highly complex decision for
firms.”

“The trend towards fragmentation, which is made worse by a lack of consensus over
qualifying criteria, is clearly causing ever more opposition and frustration.”

“The fact is that the initial momentum and high expectations of more than 30 years
ago are giving way to different challenges – ones that urgently need to be addressed.”

Major international companies such as Hewlett-Packard, Nestlé, Canon, Sara Lee and
E.ON took part in the study, which first sought to investigate why firms adopt eco-
labels.

Respondents listed brand-strengthening, addressing consumers’ sustainability demands
and protecting against pressure-group attacks as key benefits of the practice.

But they also expressed what the study called “substantial scepticism” over eco-
labels’ enduring credibility and the rigour of the criteria and certification procedures.

Ole Just Sorensen, of energy company Grundfos, told researchers: “In some areas 
the market looks more like a new industry of ‘selling stickers’.”

Duncan Pollard, Nestlé’s sustainability advisor, said:

“We may be seeing the first serious reappraisal of the conventional wisdom that 
if you wish to prove you’re sustainable you need a certification logo.”

The research found continuing fragmentation, consumer confusion and lack of consensus
on qualifying criteria are viewed as the greatest challenges to hopes of eco-labelling
continuing in its current form.

The findings highlight a desire for improved consolidation and standardization as
industry adoption of eco-labelling moves towards “saturation.”

The study warns that companies and customers alike risk being “overwhelmed” unless
there is greater dialogue and cooperation among stakeholders.

Dr. Joana Comas Martí, an expert in supply chain environmental management, said:

“There’s also a feeling among firms that many eco-label providers launch with good
intent but morph into organisations whose desire is to survive rather than serve.”

“This raises serious questions about eco-labels’ effectiveness in delivering real
outcomes and their potential to help achieve genuine market transformation.”

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 greenlivingguy

 The Green Living Guy, Seth Leitman is an independent power producer, a green living
expert, and Editor of the McGraw-Hill, TAB Green Guru Guides. Seth is also an Author,
Radio Host, Reporter, Writer and an Environmental Consultant on green living. The
Green Living Guy writes about green living, green lighting, the green guru guides
and more. Seth's books range from: # Build Your Own Electric Vehicle by Bob Brant
and Seth Leitman (2nd and 3rd editions) # Build Your Own Plug-in Hybrid Electric
Vehicle by Seth Leitman # Build Your Own Electric Motorcycle by Carl Vogel # Green
Lighting by Seth Leitman, Brian Clark Howard and Bill Brinsky # Solar Power For 
Your Home by David Findley # Renewable Energies For Your Home by Russel Gehrke #
Do-it-Yourself Home Energy Audits by David Findley # Build Your Own Small Wind Power
System by Brian Clark Howard and Kevin Shea # and more green living books to follow.

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