Eco-Labels: Making Environmental Purchasing Easier?

Eco-Labels:

Making Environmental Purchasing Easier?

Defining Eco-Labels

An eco-label attempts to provide relevant, accurate, and meaningful information to allow purchasers to incorporate human health and environmental considerations as part of the routine purchasing decision. Ecolabels are an internationally accepted way of differentiating among products. In fact, the United States is one of the few industrialized countries that does not have a government-sponsored, multi-attribute, eco-label program. Our Canadian neighbors and more than 20 other countries as diverse as Germany, Japan, Sweden, Brazil, India, Luxembourg, and Croatia, have a governmentendorsed label they rely upon.

The lack of a single, government-endorsed, multi-attribute eco-label in the United States has led to the rise of numerous competing labeling programs. There are currently more than 40 U.S. eco-labels ( excluding all of the food labels) and the numbers continue to grow as environmental and consumer groups, individual companies, and trade associations create their own. Some of the labels are almost meaningless, such as the "eco-labels" developed by a single company or those some trade associations grant to all of their members. As a result, purchasers must first determine which labels provide accurate, credible, and useful information before using them to help make purchasing decisions.

By Scott Case

Any purchaser who has ever been asked to buy less harmful or more environmentally preferable products has faced the same questions and concerns — I'm not an environmental expert, how do I identify the safer alternatives? Which of the human health or environmental factors is really most important? Can't someone just tell me which products are the green ones?

Luckily, there are a variety of different environmental labeling programs trying to resolve these challenges for purchasers. The eco-labels can make it easier to identify the less harmful and more environmentally preferable alternatives. Some of them even consider broader issues like whether the workers are fairly compensated or whether the rights of indigenous people are being protected. It is important to note, however, that not all eco-labels are created equal. There are important differences between them. They have different focus areas. They are developed by different organizations for different purposes. Some are significantly more credible and meaningful; others are virtually meaningless. The challenge for purchasers is to be able to quickly separate the more credible labels from the less credible ones and to find successful ways of using them to buy safer products while keeping prices affordable.

Green Government

Federal Executive Order 13101, Greening the Government Through Waste Prevention, Recycling, and Federal Acquisition, encourages agencies to use the "technical expertise of non-governmental entities such as labeling, certification, or standardsdeveloping organizations."

Classifying Eco-Labels

There are a variety of different types of eco-labels purchasers will encounter. The following classification system expands upon the system developed by the International Organization for Standardization (ISO):

"Warning"

labels

identify

specific

concerns

associated

with

a

product.

California's

Proposition

65

list,

for

example,

designates

more

than

700

different

chemicals

as

known

human

health

hazards.

Products

sold

in

California

containing

any

of

the

chemicals

must

be

clearly

labeled.

Purchasers

can

then

choose

to

avoid

products

carrying

the

warning

labels.

"Seal

of

Approval"

labels

are

awarded

to

products

that

meet

a

broad

set

of

criteria

determined

by

the

standard-setting

organization.

The

criteria

are

selected

based

on

an

independent

evaluation

of

the

human

health

and

environmental

impact

occurring

throughout

the

manufacture,

use,

and

ultimate

disposal

of

a

commodity.

The more credible seals, such as those developed by Green Seal, the Canadian Environmental Choice program, and a few others are considered leadership standards. They are designed so that only the top 15 to 20 percent of products are capable of meeting their more stringent criteria.

Other seals, typically those developed by or on behalf of industry trade associations, identify minimally accepted standards and can generally be met by most products within the industry.

"Single

Attribute"

labels

recognize

products

that

exceed

a

selected

threshold

for

a

single

environmental

attribute.

The

U.S.

government's

Energy

Star

program,

for

example,

allows

companies

to

identify

products

meeting

its

en-

ergy-efficiency specifications to promote their products with the Energy Star label. Scientific Certification Systems (SCS) awards a variety of single attribute labels recognizing attributes like recycled-content or indoor air quality. These labels are extremely valuable for verifying a single attribute, but they are less useful for those organizations trying to balance multiple human health and environmental considerations.

"Report

Card"

labels

resemble

the

nutrition

labels

that

appear

on

packaged

food.

They

provide

information

on

attributes

selected

by

the

labeling

organization.

This

type

of

label

requires

the

purchaser

to

determine

which

human

health

and

environmental

attributes

are

most

relevant

before

deciding

which

products

are

more

preferable.

SCS

provides

this

type

of

label

for

electricity

generation

facilities.

"Multi-tier"

labels

reward

products

with

additional

recognition

for

achieving

higher

levels

of

environmental

performance.

The

U.S.

Green

Building

Council's

Leadership

in

Energy

and

Environmental

Design

(LEED)

standard,

for

example,

includes

four

categories:

certified,

silver,

gold,

and

platinum.

Some

advocates

prefer

the

multi-tier

approach

to

the

pass/fail

approach

of

the

seal

of

approval

and

single

attribute

programs

because

they

think

it

provides

useful

differentiation

among

the

certified

products.

It is important to note, however, that a multi-tier approach does not necessarily mean a label is more meaningful. Some multi-tier labeling programs are significantly weaker than their pass/fail counterparts so even products earning the highest possible rating might fail to meet the pass/fail standards.

Purchasers must first determine which labels provide accurate, credible, and useful information before using them to help make purchasing decisions.

Comparing Eco-Labels: All Labels Are Not Created Equal

There are three critical components of any labeling program—the validity of the standard on which the label is based, the process used to set the standard, and the verification processes used to demonstrate if a product meets the standard. Within each of the three components, there is a spectrum of possible strategies ranging from the most to the least desirable.

Based on recommendations by the U.S. Environmental Protection Agency (EPA), Consumer's Union (publisher of

Consumer

Reports), and members of the Global Ecolabelling Network ( GEN), purchasers can use the following guidelines to identify the most credible labels.

Validity of the Standard

Standards

should

have

a

clear

and

consistent

meaning.

The

meaning

of

the

label

should

not

change

based

on

who

is

certifying

a

product

or

which

manufacturer's

product

is

being

certified.

Standards

also

should

be

very

clear

about

what

aspects

of

a

product's

environmental

performance

they

cover.

In

reviewing

labels

for

office

fax

machines,

for

example,

the

Energy

Star

label

only

ensures

the

product

meets

specific

energyefficiency

performance

levels.

The

Green

Guard

label

only

addresses

indoor

air

quality

issues.

The

Environmental

Choice

label

covers

both

energy-efficiency

and

air

quality

concerns

in

addition

to

other

environmental

considerations

such

as

whether

the

fax

machines

minimize

noise

and

can

accept

remanufactured

toner

cartridges.

The

environmental

information

should

be

meaningful

and

verifiable.

It

is

important

to

know

exactly what a label means. Vague terms like " environ-mentally friendly" are insufficient because different organizations could interpret the term differently. The standard should include explicit information defining what ingredients and practices are acceptable or prohibited or which testing protocols are used to make such determinations. Comparing several eco-labels to determine if they are addressing similar concerns is one way of ensuring the information is meaningful. GEN members often have agreements among themselves to recognize the validity of each others standards, which provides further evidence of their validity.

The

standard

guidelines

and

resulting

standard

must

not

conflict

with

the

Federal

Trade

Commission's

(FTC)

Guides

for

the

Use

of

Environmental

Marketing

Claims

.

Standard-Setting Process

There

should

be

no

conflict

of

interest

for

the

standard

setting

organization.

This

precludes

an

individual

company

from

developing

standards

for

products

it

manufactures

or

sells

and

precludes

a

trade

association

from

developing

standards

for

products

its

members

manufacture

or

sell.

Multi-attribute

standards

should

be

based

on

human

health

and

environmental

considerations

throughout

the

life

cycle

of

the

product

from

raw

material

extraction,

manufacture,

use,

and

ultimate

disposal

of

the

product.

The

life

cycle

stages

considered

and

covered

by

the

standard

should

be

explicitly

stated.

Written

opinions

of

key

stakeholders

from

companies

throughout

the

industry,

environmental

and

consumer

safety

organizations,

end

users,

and

other

interested

parties,

including members of the public, should be actively solicited throughout the development process.

Standards

should

be

developed

in

a

transparent

process

that

clearly

identifies

the

funding

sources

for

the

standard

setting

organization.

It

should

also

identify

the

name

and

professional

affiliations

of

everyone

involved

in

preparing,

reviewing,

commenting

upon,

and

finalizing

the

standard.

All

comments

provided

throughout

the

standard

development

process

should

be

available

to

the

public

and

clearly

identify

the

commentator

and

document

the

standard

setting

organization's

response

to

the

comments.

Standards

should

be

reviewed

and

updated

on

a

regular

basis.

Verification Process

A variety of protocols are available to verify that a product meets a standard. Some are more rigorous (and more expensive), but provide a greater degree of assurance. The protocols listed below are presented in ascending order from least to most preferable.

Self

certification:

Individual

companies

certify

their

products

meet

the

environmental

standard.

Self

certification

with

random

audits:

Individual

companies

certify

their

products,

but

the

standard

setting

organization

conducts

random

audits

to

ensure

compliance.

Independent

third-party

certification:

An

independent

organization

verifies

the

products

meet

the

standard

based

on

information

provided

by

the

manufacturer.

Independent

third-party

certification

with

on-site

audits:

An

independent

organization

verifies

the

products

meet

the

standards

based

on

information

provided

by

the

manufacturer

and

after

an

on-site

visit

to

verify

the

accuracy

of

the

information

provided

by

the

manufacturer.

It is important to note that a stringent verification process is relatively meaningless if the standard against which a commodity is being measured is not meaningful.

Using Eco-Labels

Purchasers are using eco-labels in several ways to reduce the adverse human health and environmental impact of their purchasing decisions.

Researching Human Health and Environmental Considerations

Reviewing the issues addressed by several eco-labels is a very effective way of quickly determining which considerations are most important for an upcoming purchase. It is the first place most purchasers begin. Purchasers then use the information from a variety of sources to prepare purchasing specifications or develop request for proposal (RFP) criteria. EPA, GEN, and Consumer's Union each make it easy to quickly locate many of the relevant eco-labels for any commodity.

Developing Purchasing Specifications

Purchasers are also increasingly comfortable using a single, credible eco-label as the basis for a purchasing specification. While neither Massachusetts nor Santa Monica, California required Green Seal certification for the safer cleaning products they buy, their product requirements were built from Green Seal's institutional cleaning product standard after carefully reviewing all of the other relevant labels.

Label Comparison

Consumer's Union, publisher of

Consumer

Reports, compares the value of various eco-labels on its www.eco-labels.org Web site.

Editor's Note: The Green Purchaser is a regular feature tracking the growing sustainable purchasing movement—the effort to buy less polluting products from less polluting companies. Scot Case is the Director of Procurement Strategies at the Center for a New American Dream where he helps institutional purchasers buy less polluting products from less polluting companies. Visit: www.newdream.org/procure or e-mail Case at scot@newdream.org.

Both RFPs clearly stated that Green Seal certified products automatically meet their environmental requirements. Many of other purchasers also use Green Seal standards for paint, cleaning products, or other products, including Chicago, IL; Sarasota County, FL; Multnomah County, OR; Portland, OR; Seattle, WA; the Aberdeen Proving Ground in Maryland; EPA headquarters; the U.S. Department of Interior and dozens of others.

Green Seal is not the only certification program frequently incorporated into purchasing specifications. Portland, Santa Monica, Seattle, and others include references to Forest Stewardship Council (FSC) certified wood and wood products. Santa Monica, Massachusetts, and the Western States Contracting Alliance (WSCA) mention TCO certification in their RFPs for computer equipment. Sarasota County references the Chlorine Free Products Association's (CFPA) processed chlorine free label. Public-and private-sector purchasers throughout Canada reference the Environmental Choice program.

Rewarding Certified Products

While some purchasers remain reluctant to require products to be certified, government purchasers are beginning to reward certified products during product evaluation because it makes it easier to determine which products meet the human health and environmental requirements. The Canadian government, for example, provides additional consideration to those products certified by the Environmental Choice program when evaluating bids for office electronic equipment.

Cleaning product suppliers in Ventura County, CA, can avoid a lengthy and time consuming verification process if its products are already Green Seal certified.

Requiring Certified Products

Purchasers have traditionally avoided requiring products to be certified because they fear it will limit competition thereby increasing costs. As markets for certified

products mature, this becomes less of an issue because sufficient competition is available within the pool of certified products. Almost everyone, for example, requires purchases of Energy Star certified products because the certified products are so widely available. The Commonwealth of Pennsylvania determined this was also the case with cleaning products. As part of a recent solicitation, Pennsylvania required all products to be Green Seal certified or to demonstrate compliance with the Green Seal institutional cleaning product standard.

Growing numbers of purchasers are requiring all new construction projects to be LEED certified or to demonstrate compliance with the standard, including Portland, Sarasota County, EPA, and others. EPA required Green-e certification when it purchased renewable energy for several of its laboratory facilities. Bidders were required to be certified or to become Green-e certified within 45 days of contract award. Similarly, almost a dozen purchasers in Canada, including the Canadian government, require generating facilities to be certified by the Environmental Choice program before they will buy "green" electricity.

Future of Eco-Labels

Given the growing numbers of purchasing officials seeking safer products, eco-labels will remain an important tool for purchasers. Until the United States joins the rest of the world in developing or endorsing a single, multi-attribute, eco-label, purchasers will need to remain familiar with the available labels. It is also important to note, however, that given the increasingly global economy, many products sold overseas might already meet foreign eco-certification requirements because it is essential for overseas sales. As a result, it never hurts to ask about eco-certification or to use eco-labels to develop human health and environmental requirements. You might be surprised to discover that some products you buy are already certified. You won't know unless you ask.

PRO PATHWAYS

Visit the following organizations referenced in the article: —Chlorine Free Products Association: www.chlorinefree products.org.

—Consumer's Union: www.eco-labels.org.

—Energy Star: www.energy star.gov/purchasing.

—Environmental Choice: www.environmentalchoice.ca.

—EPA Environmentally Preferable Purchasing Program: www.epa.gov/oppt/epp.

EPA Standards and Label Database: http://yosemite1. epa.gov/oppt/eppstand2.nsf.

—Federal Trade Commission: www.ftc.gov/bcp/grnrule/ guides980427.htm.

—Forest Stewardship Council: www.fsc.org.

—Global Ecolabelling Network: www.gen.gr.jp.

—Green-e: www.green-e.org. —Green Guard: www.greenguard.org.

—Green Seal: www.greenseal.org.

International Organization for Standardization: www.iso.org.

—U.S. Green Building Council's Leadership in Energy and Environmental design (LEED): www.usgbc.org/leed.

—Scientific Certification Systems: www.scscertified.com.

—TCO: www.tco development.com.