Eco-labeling: What it is and how to work with it. by Fallight Xu

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1 Eco-labeling: What it is and how to work with it by Fallight Xu

2 Our service For safety and quality. Testing Inspecting Certifying Qualifying Consulting Products Systems Process People 2

3 Wherever you are, we are with you. 3

4 Facts & Figures Worldwide 4

5 TUV Rheinland: More than 140 Years of Innovation. Your advantage: our experience Entrepreneurs take the initiative and set up the DÜV to ensure the safety of their manufacturing plants 1918 Activities in the energy and mining sectors 1957 Commitment to environmental protection: dust register in Cologne 2006 Joined the UN Global Compact 2009 World s largest photovoltaic lab 1926 First material analysis laboratory 1900 Vehicle inspection and driving license tests 1975 Medical work 1969 International product tests and certifications 2007 Represented on all continents 5

6 Contents About Eco-label Global Landscape of Eco-label System Eco-label Stakeholders Analysis Types of Eco-label Elements of Eco-label System Comparison among Eco-label Systems Key Factors to the Success of An Eco-label Scheme Pros and Cons for Eco-label Proliferation Status Quo of Eco-label Development Outlook into the Future Tips for Eco-label Selection 6

7 About Eco-label Definition (according to Global Eco-labeling Network-GEN): An "ecolabel" is a label which identifies overall, proven environmental preference of a product or service within a specific product/service category; Evolving since 1970s; Main features: voluntary, market-based, lifecycle thinking and third party certified; Eco-label is an important SCP (Sustainable Consumption and Production) element interface between production and consumption patterns 7

8 Global Landscape of Eco-label System Confusion to consumers, nightmare to manufacturers More than 400 eco-labeling schemes in operation globally covering everything from lumber to fish, tea to textiles and tourism The integrity of eco-labels varies wildly 8

9 Eco-label Stakeholders Analysis Green advocates Green demand Retailers Eco-label applicants/holders Eco-label operating entities Eco-label standard developers Government Consumer organizations NGOs & Media Green consumers Green public purchasers Procurement managers of eco-minded companies (EMAS, ISO etc.) General manager or product (range) manager Central purchaser of a retailer chain Marketing manager POS shop managers (listing, placement) CEO/Product manager Quality/Environ mental manager Marketing/sales manager/pr 3rd party certification body 3rd party testing/auditing house Eco-label owner Industry association Standardization body NGO Certification body 9

10 Types of Eco-label by ISO Classification Rule ISO Type I system (operating according to ISO 14024) identify overall environmental preference of a product based upon life cycle considerations. ISO Type I-like (often referred to as certification schemes or sustainability labeling) share the same characteristics as Type I but often are focused on specific impacts (e.g. energy consumption, agricultural practice) and applied only to a specific sector (energy using appliances, agricultural commodities). e.g. FSC, MSC, organic labels, Rainforest Alliance. ISO Type II (operating according to ISO 14021) is self-declared environmental labels (often a single attribute, sometimes a company s own environmental logo). ISO Type III (operating according to ISO 14025) is a product declaration that provides more detailed quantitative information of products. It takes the form of a matrix and similar to declarations of nutritional characteristics of products. 10

11 Types of Eco-label by Ownership Operated by 1 st party Operated by 3 rd party Operated by regulators Operated by industry associations 11

12 Types of Eco-label by Application Sector Sustainable forest management Energy consumption Fair trade Carbon footprint Organic Total sustainability performance 12

13 Types of Eco-label by Region China Europe North America APAC 13

14 Elements of Eco-label System Issues typically considered in an eco-label system Pollution Energy consumption and management Waste production & management Resource consumption, resource depletion Natural resources management Bio-diversity Eco-system health Human health 14

developed In terms of leadership: emerging or long-standing Degree of

15 Comparison among Eco-label Systems Compliance & certification model: threshold or load points Source of standards: in-house or 3 rd party developed In terms of leadership: emerging or long-standing Degree of independence: independent or inter-dependent Recognition: compulsory or voluntary 15

16 Key Factors to the Success of An Eco-label Scheme Green public procurement Economic instruments Education for sustainable consumption Consumer organizations 16

Pros and Cons for Eco-label Proliferation #

# Cost consuming; # Confusing criteria; #

17 Pros and Cons for Eco-label Proliferation # Tool against greenwashing accusations; # Engage internal and external stakeholders to promote sustainability in the industry. # Cost consuming; # Confusing criteria; # Missing mechanism of standards harmonization. 17

18 Status Quo of Eco-label Development Crowded market: eco-labeling schemes flourish globally; The industry has to apply for a variety of eco-labels to gain empathy in different markets; Mixed attitude toward eco-labeling, approaches vary across industry and region; Outcry for a globally harmonized eco-labeling system get louder and more widely perceived. 18

19 Outlook into the Future Platform for standards harmonization and bilateral/multilateral recognition of eco-labels to be built up (e.g. GENICES scheme initiated by GEN); Regional initiative kicked off to promote eco-labels unification (e.g. Single Market for Green Products Initiative + PEF & OEF in EU); Accreditation body is building up capacity to accredit eco-labeling schemes (e.g. ANSI is recruiting ISO assessors) Emerging eco-labeling schemes endorsed by policy-makers (e.g. Green Globe in US). 19

20 Tips for Eco-label Selection Information collection (what are the eco-labeling schemes in operation for specific product category); Target market access criteria analysis; Find out if MRA in place regionally/globally for specific product category and what are the participating CBs and nations; Closely monitor the development of regional initiatives of eco-labeling unification. 20

21 Fallight Xu Sustainability Services TUV Rheinland Tel:

Environmental and sustainability labelling. Liazzat Rabbiosi

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