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Eco-certification: Carrot or Killer for Innovation?

Google eco-certification. I dare you.

Yes, there are over 1,050,000 entries. If that makes your eyes glaze over, you’re not alone.

Eco-certification and eco-labelling are hot – and hotly disputed – topics in business today.

On the one hand, they can provide benchmark criteria to guide effective greening. As Trevor Bowden of Ecolabelling.org confirms, “good, independent eco-certifications enable companies to create meaningful sustainability initiatives without starting from zero.”

They can also provide a framework for innovation by providing a filter through which every innovative idea or program must pass before being implemented.

But the overabundance of third party certification programs have sown confusion among companies and consumers alike. There are literally thousands of certifications to choose from. Adding to the confusion, seemingly similar certifications like the Forest Stewardship Council (FSC) and Sustainable Forest Initiative (SFI) are at odds with one another. In this atmosphere of confusion, finding a certification to build product innovation on would seem daunting at best.

Guidance, or mis-guidance?

Despite this, consumers continue to look to eco-labels to provide guidance. Truth is, most consumers recognize only a few labels (quick, name three – Energy Star, USDA Organic and…?). Even so, the mere presence of a certification logo provides comfort, and can steer purchase.

This eco-label allure, combined with the internecine confusion of the authentic certification programs, has created a dangerous new trend…self-certification. From Procter’s ‘Future Friendly’ to Subaru’s PZEV, these certifications share two attributes: 1) they’re slickly marketed, and 2) they have no credibility. As Environmental Leader writes, “Green labels mean nothing if they are not independently monitored with third party evaluation, Standing up and saying ‘I'm green because I say so’ doesn't cut it anymore.”

Obvious but absent?

Wood Turner of Climate Counts provides two areas ripe for exploration – educating consumers, and providing them with certifications they can derive personal benefit from.

“The first problem with eco-certification is that the certified brands treat the certification logos as nothing more than little graphics on their packaging” says Turner. “You see gluten free on bread. Why can’t the bread brand explain to me what all the wonderful benefits of gluten free are?” In Turner’s view, educating consumers on eco-labels would build trust, and differentiate the brand.

To Turner’s second point, eco-certification programs need to update their own image – a process that brands can help with. “Consumers need to get a halo from an eco-label and feel the emotional connection – they have earned it with their purchase.” Ecolabelling.org’s Bowden confirms that certifiers are now having to develop or import expertise in new areas like marketing and communications. Some, like the Marine Stewardship Council, are even getting facelifts from ad agencies to help enhance their messaging and impact.

The accredited advantage…

So where is the opportunity for green innovation through eco-certification?

Savvy brands take the opportunity to work more closely with good certification programs – first reaping the maximum benefit from third party certification, then helping the certifier create a label program that attracts more consumers.

Look at companies that work innovatively with eco-certifiers, like Seventh Generation, Stonyfield Farms and Patagonia, and you see companies with a new perspective on conscious capitalism.

These are companies that are applying the green innovation lens to their entire business, not just bolting it on. As Jeffrey Hollender, co-founder of Seventh Generation, writes in his new book, “It’s about re-imagining companies from within: innovating new ways of working, instilling a new logic of competing, identifying new possibilities for leading, and redefining the very purpose of business.”

Perhaps it’s time more corporations looked past the little logo on the package, and started treating certification as a keystone to successful green innovation.

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Discussion:    Add a Comment | Comments 1-9 of 9 | Latest Comment

March 31, 2010 10:06 PM

Eco-labels can all too easily stifle innovation and continuous improvement. To be useful in the marketplace the standard needs to be low enough to insure that a substantial number of products meet it to insure producer or specifier choice - even if this lower threshold is only a step along the path to a truly green product. Once the bar has been thus lowered, there is no more incentive for manufacturers to go further. Instead of a

April 1, 2010 7:40 AM

Great feedback.

I think the best response I got to this was from Trevor Bowden of ecolabelling.org, who emphasized that companies find a certification program they can live with, then work with the program to create innovative solutions. The certifiers are looking for input, and want companies to succeed - it's a great testimonial to their success. The trick is, as Trevor said, to work with them, and not simply treat them as a checklist.

Cheers

Marc Stoiber

April 2, 2010 8:56 AM

Marc, I think your points are extremely important. This explosion of eco-certs dilutes the legitimacy of the entire movement and, frankly, looks phoney (which a fair amount of it is).
Yes you can review the certs. applying to your product to try to identify the durable standards, but there's no guarantee they will prevail, even with bureacracies like USGBC behind them. Therefore I would advise choosing your own set of priorities and clearly publicizing them, regardless of the badges you will eventually add. It's too early to trust in any self-appointed eco-certs.

April 2, 2010 9:08 AM

I think you nailed it. As with the online boom (and bust), we're seeing a confusing array of eco certs. The strong, robust ones will gain more widespread acceptance, and begin to be shorthand for consumers to look for. In the interim, whether you pick an eco-cert or not, transparency clearly communicated is great for every company to incorporate into their website and marketing.

Thanks for the great points.

Marc Stoiber

April 3, 2010 8:22 AM

Right. Transparency is key - with independent tools to help the consumer or specifier interpret that information (continuing my first comment which got cut off above). A single threshold standard or certification on its own rationalizes the current limitations of the market and can clearly be an obstacle to innovation. Put in context with transparency of content and progressive benchmarking to place the standard on a road map to the ideal green product standards can become a useful part of a system to stimulate market transformation. That is what we are doing with the building product market with the Pharos Project - establishing a platform for consistent product contents and attribute transparency and scoring products against benchmarks on a series of health and environmental and social impact scales. We use various eco-certifications as part of the benchmark framework. The system thus helps the user see what the certification is telling about the product and what it is not.

April 3, 2010 8:30 AM

Sounds like you have it nailed. Nice one.

Keep me posted.

Marc Stoiber

April 3, 2010 10:05 AM

As innovation advances in purchase technology;and choice enablement grows.
The decision of a consumer will drive corporations to view the customer as king! More than a statistic of a marketing study. When a innovative disruptive technology project comes into the market . Executives that have the same markets manipulated to the trends like ~ Counting carbs, going green, or avoiding MSG - discover an educated consumer capable of critical thinking. Those same executives will find a better mouse trap to entise the masses.
As a software enabled public finds itself with endless options and not just limited choices in a controlled atmosphere behind walls in a maze.
Corporate market research divisions invest far too much in controlling the choice of the consumer, instead of how to better serve the consumer. I hope my contribution to the E-commerce world will bring better service to the average consumer.

Sincerely
Heavyonion.com

April 3, 2010 10:08 AM

Thanks for your feedback. Keep us updated on your progress.

Marc Stoiber

July 31, 2011 4:34 AM

http://www.gofundme.com/HeavyOnion

https://profiles.google.com/111369367772397899176?hl=en&tab=fh#11136936777239...

Discussion:    Add a Comment | Back to Top | Comments 1-9 of 9 | Latest Comment

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