INVESTIGATION OF THE MARKET IMPACTS AND PENETRATION OF THE EUROPEAN ECO-LABEL OVER THE YEARS 1992-2000 AND 2001-2004 EUROPEAN COMMISSION DG ENVIRONMENT TAYLOR NELSON SOFRES Consulting Véronique MONIER Tel: 00 33 1 40 92 47 00 E-mail: veronique.monier@fr.tnsofres.com FINAL REPORT December 2001 Isabelle JORGE Tel: 00 33 1 40 92 46 85 E-mail: isabelle.jorge@fr.tnsofres.com 20 BA 27 _4 TN SOFRES Consulting 1.
Content Executive Summary I. Presentation of the Project I. 1- Context and Aims of the Project I. 2- Overall Methodology II. Phase 1: Assessment 1992-2000 II. 1- II. 2- II. 3- II. 4- Methodology Assessment 1992-2000 of the European Eco-label Assessment 2001 of the European Eco-label Assessment 1992-2000 National/Regional Labels II. 5- Diagnosis & Conclusion of Phase 1 Appendices - Phase 1 III. Phase 2: Projection 2001-2004 III. 1- How to Improve and Assess the General Success of the European Scheme III. 2- Definition of Realistic Medium Term (2004) and Long Term (10 years) Targets for the EU scheme III. 3- Assessment of the Adequate Level of Resources - Scenarii analysis III. 4- Conclusion about Resources III. 5- Some Other Considerations and Recommendations to Improve the Market Penetration of the EU Scheme, including Product Groups TN SOFRES Consulting 2. 3 15 16 17 18 19 22 41 44 51 57 67 68 70 74 75 77
Executive Summary TN SOFRES Consulting has been contracted by the DG Environment to investigate the market impacts and penetration of the European Eco-label over he years 1992-2000 and 2001-2004. Context of the study The Regulation (EC) N 1980/2000 of the European Parliament and of the Council of 17 July 2000 on a revised Community Eco-label award scheme continues the scheme established in 1992. In accordance with this Regulation, a Community Eco-label working plan had to be established by the Commission before the end of 2001. It has been widely discussed within the EUEB and adopted unanimously by the regulatory committee. This working plan includes: a strategy for the development of the Scheme between 2001 and 2004, the objectives for the environmental improvement and market penetration which the scheme will seek to achieve, a non-exhaustive list of product groups which will be considered as priorities. Two main objectives of the study Firstly, to assess the past efficiency of the Flower (1992:2000), in terms of resources devoted and market penetration, with a comparative assessment of three national / regional labels (Emblem - ESC, NF Environnement - Fr, Nordic Swan - Fi). Secondly, to explore the different possibilities for the future development of the Eco-label (2001:2004), in terms of resources to achieve realistic penetration goals. Methodology of the study The assessment of the resources devoted to the EU Eco-label since 1992 and to the national / regional labels was strongly based on a questionnaire consultation of all Competent Bodies and all other stakeholders involved in the scheme. The assessment of the achievements of the schemes was mainly based on the analysis of the history of the schemes in terms of labelled products (LBs) and awarded companies (ACs) (in number per product group (PG), per country, per year...). To explore the different possibilities for the future development of the European eco-label, four of the most dynamic Competent Bodies (CBs) have been asked to react on several scheme development scenarii. TN SOFRES Consulting 3.
Phase I: Assessment 1992-2000 In terms of quantitative assessment of the achievements, 60 companies had been awarded between 1992 and 2000, and about 276 products labelled. The 15 (meanwhile 17) existing product groups have known an heterogeneous success. After a timid growth between 1992 and 1995, the year 1996 with the introduction of the product group Indoor paints and varnishes marked the real start of the EU scheme (6 new companies had been awarded that year). Among the 60 ACs, 60% were awarded in 1999 and 2000. The first phase analysis also demonstrates the high level of concentration of the success: Only 4 PGs out of 15 gather 85% of the products labelled (Paints and varnishes, Textile products, Footwear and Tissue paper), 5 countries concentrates 75% of the products labelled (Catalonia, D, F, It, Sw), In 6 countries 98 to100% of the labelled products (PLs) were concentrated in only one PG (B, El, Fi, Irl, Pt, Sv). At the end of the phase I (June 2001) it was possible to include the evolution of the scheme, regarding the first six months of 2001: it confirms the growing visibility of the EU Eco-label and the acceleration of the number of new companies awarded per year (+29 ACs between January and June 2001). In terms of resources dedicated to the EU scheme, both human resources and budget have been considered. At the European scale, about 37 persons (equivalent full time) are dedicated to the EU Eco-label, 7 are located at the European Commission and 30 in the different Competent Bodies. About 70% of the persons are dedicated to technical activities and 30% to promotion and marketing activities. A high heterogeneity exists among the participating EU countries: if two CBs have more than 8 persons dedicated to the EU Eco-label, 8 CBs have less than 1 person full time working for the scheme; 5 other CBs count 1 to 3 persons devoted to the Flower. If the high level of human resources have clearly helped some CBs in developing the scheme (see Italy and Denmark), it is not a guarantee of success (between 1992 and 1998, the UK CB had 14 persons dedicated to the Flower and only 3 companies had been awarded). Another counter example is France: with only one person devoted to the EU Eco-label, 16 companies had been awarded in 4 different PGs for a prolonged period. Among others (role of a key stakeholders such as a retailer, a large producer or a SME, a powerful NGO), the status of the CB can be a key element: in France the CB is located in a private certification agency, the whole organisation is dedicated to the marketing of products such as eco-labels, quality labels and EMAS. On the contrary, some CBs located in a Ministry seem to have had shortcomings in product marketing knowledge and in committing corresponding manpower on these issues. In such cases, subcontracting Consulting appropriate marketing activities can be a solution. 4. TN SOFRES
In terms of budget dedicated to the EU Eco-label, it had been impossible to collect the full history of the budget since 1992 and very hard to gather the 2000 budget for all stakeholders. Nonetheless, we have estimated the regular 2000 budget at at least 2 524 800 Euros: about 30% of this budget would have been dedicated by the European Commission and 70% by the different CBs. About 45% of these resources would have been allocated to technical activities (i.e. product groups development) and 40% to marketing and promotion activities. Again, a strong heterogeneity exists among the countries as for human resources: some CBs still have no specific budget dedicated to the EU Eco-label while others spend up to 500 000 Euros a year. The average budget of CBs which have invested in the scheme is about 177 500 Euros. Some CBs, as Italy, illustrate the fact that the return on investment can be rapid: created in 1998 the Italian CB has invested about 500 000 Euros per year since then and at the end of 2000 it had 5 companies awarded (12 in July 2001). One of the key elements of success is that more than 60% of the budget has been dedicated to marketing activities (contacts with professional organisations, companies, organisation of meetings, etc). Main learning of Phase 1: The success of the EU scheme on a national level strongly depends on a very positive attitude of the ministries and public authorities in the country. It is also proportional to the resources dedicated to its marketing but not 100% linked to them. Its depends on the marketing expertise of the persons and the continuity of their responsibility. TN SOFRES Consulting 5.
Phase II: Projections 2001-2004 On the basis of the past development of the EU Eco-label between 1992 and mid-2001, qualitative and quantitative goals have been defined for a realistic and successful development of the scheme in the medium term period (2001-2004) and the long term period (10 years). The medium term goals have been developed via the historical assessment of some indicators of success, the benchmarking with most dynamic Competent Bodies and for some indicators the benchmarking with national labels. The long term targets were developed based on the general goal of making the EU eco-label a successful EU brand (e.g. n 3 or specific goals of the working plan). 6 success criteria have been selected to reflect the finality and the results expected from the EU scheme and, for each of them, a set of indicators to assess the success of the Eco-label, as shown below. Finality Get Momentum Results SUCCESS CRITERIA Environmental improvement Adequacy with the demand of the market = Being a marketing tool for manufacturers & retailers (in order to increase the supply of labelled products by manufacturers & retailers) Level of development Visibility (to increase the demand by consumers) Growing path Spontaneous notoriety On the shelves ASSESSMENT INDICATORS Suitability of the PGs Relevance (nature & magnitude of the associated environmental impacts) Potential (potential environmental benefits) Steeribility (extent to which the PG can be influenced by eco-labelling) Use of the label in public & private procurement (use of the eco-label as a standard) Number of companies awarded (manufacturers, retailers) Impact on the image of the companies awarded Number of shelves in stores with eco-labelled products Range effect (assortment of labelled products, product families) Level of environmental concern of the purchasers Number of products labelled Number of articles labelled Market shares of labelled products % of European consumers which recognise the EU eco-label logo as a label of environmental excellence as the EU eco-label Leaflets Merchandising Number of stores where eco-labelled products are sold Number of promotional actions per year in the stores Annual growth rate of the number of ACs Ex-factory sales value of the labelled articles Number of new PGs per year and related growth Budget and staff TN SOFRES Consulting 6.
Medium term (2001-2004) and long term (10 years) realistic targets are presented below according to the indicators listed above. Finality Get Momentum Results SUCCESS CRITERIA Environmental improvement Adequacy with the demand of the market Level of development Visibility Growing path Spontaneous notoriety On the shelves REALISTIC TARGETS MEDIUM TERM (2004) LONG TERM (10 YEARS, 2011) 5 to 6 strong PGs (a strong PG = a minimum of 20 ACs in Europe, split between at least 3 MSs) Public procurement: use of the eco-label criteria in calls for tender Private purchasing: use of the eco-label criteria as a benchmark of environmental excellence All relevant manufacturers and retailers should be aware of the eco-label Big retailers have to be won to enable a quick penetration More complete PG families (DIY, electric and electronic appliances, clothes, home decoration, stationary material ) Labelled products (LPs): + 35% per year, at least for some key MSs 1 Market share of LPs: at least 1% for 3 or 4 PGs in each MS Progressive increase of consumers awareness (enough PGs today to largely inform consumers) To refine and distribute the kit to assist retailers in their communication in stores Awarded companies (ACs): + 33% per year, at least for some key MSs2 (e.g. 40% in the very dynamic MSs, 20% in the relative dynamic MSs and 5% in the others) Ex-factory sales value of the LPs: + 35% per year Nb of new PGs per year: at least 22 by 2004 (2 new ones per year) Budget and staff devoted to promotion: at least 50% in all MSs 10 strong PGs (a strong PG = a minimum of 20 ACs in Europe, split between at least 6 MSs) Industry: impose new environmental standards and encourage environmental innovation Eco-label as a 'standard' for the products marketed Eco-label as a fashion of benchmarking 'sustainable consumption' To move towards the full theoretical potential for market penetration of the eco-label (between 1% and 30% depending on the PGs and the criteria selectivity) At least 50% of consumers recognise the logo as a label of environmental excellence 40% of consumers consider the EU eco-label in purchasing behaviour Retailers autonomously act in their communication in stores on promoting the EC label 1 A few sudden and some more gradual spill over effects from certain key countries to others may be expected depending on product groups in question and if such effects are observed and actively promoted by EUEB stakeholders TN SOFRES Consulting 7.
The last part of the study has then been dedicated to the following question: what would be the adequate level of resources (staff and budget), compared to the current one, necessary to achieve these realistic goals? To answer that question, 3 scenarii (A, B and C) differing on the level of resources devoted to the EU scheme have been considered and submitted to 4 Competent Bodies, among the most dynamic ones, to comment on their feasibility and expected achievements in terms of market penetration. The CBs interviewed have confirmed what the 1992:2000 assessment of the scheme has shown: there is not a unique and systematic link between resources and achievements. However, a minimum level of budget and human resources, as well as a relevant allocation of the resources to the various tasks to be performed (technical and promotional) are always necessary to reach some results. The interviews have also confirmed our findings on the general necessity to increase the resources particularly in MSs with a low level of overall resources (budget + manpower). We have come to the conclusion that the evolution of both the level of resources and their allocation has to take into account more strongly the current situation of each country and to take form of tailor-made solutions rather than of general cut solutions. The following parameters to consider have been highlighted: the level of environmental awareness of the consumers, the existence of national label (not only the competition between labels but also the notoriety of the concept among producers and consumers, common marketing activities...), the possibility or not for the CB to carry out marketing and promotion activities (profile of the staff, status of the CB)... In conclusion, while key elements of the 3 scenarii prove to be essential, none of them initially proposed and analysed would as such be totally efficient at a European scale as they do not take into account the specific needs of each group of countries. TN SOFRES Consulting 8.
The best scenario of resources evolution (called scenario D) will then be a mix of the three scenarii analysed: the scenario A (current level of resources) will be the most efficient and realistic for the group of most dynamic countries which have already performed marketing activities; a better allocation of these resources, in order to spend at least 50% of them to marketing activities, will be necessary in some cases. the scenario C (doubling the resources) would be the only way to involve the late comers (MSs which haven t yet really invested in the Flower), the scenario B (doubling of the Commission resources) would also have some positive effects, e.g. it could help the EUEB to go further on in the new product groups preparation (tackling more deeply environmental and marketing issues). However, in order to fully and efficiently exploit these resources or funds made available directly or indirectly (e.g. LIFE funds of DG ENV), better multiplying effects and relay functions of the new EUEB are still decisive and absolutely necessary. Due to the necessity of appropriate relays of a European brand on the scene, only active support by the corresponding EUEB partner or partners can guarantee a mid and long-term take-off of the scheme in a country or in a product group. Indeed, even if in one year the Commission could impulse some dynamics in selected countries, by contracting a market study or action for instance as it tried several times in the past, it would have a very short term effect if the CB and other EUEB stakeholders did not support the label by devoting resources in the follow-up (human resources and budget). Ironically, the biggest return on investment of such funds may then again be expected in the group of the already most dynamic countries. According to our findings the COM would be well advised to invest in priority in such MS and/or in newcomers provided they show a strong political will to catch up more quickly to the already more dynamic group of countries. TN SOFRES Consulting 9.
Conclusions about resources During its first 8 years of existence, the EU Eco-label has been developed with important differences in level of involvement and means between the Member States. Today, three groups of countries can be considered: some very dynamic countries, some newcomers and some late comers. The past evolution has shown that these groups are not definitively fixed in these 3 auxiliary categories. One country may e.g. switch easily from one group to another by simply accelerating its commitment and marketing development (see Greece) or on the other hand fall back if it does not keep the pace of its initial group (see the evolution in the UK where the situation might also have pointed to the strong dependence on an even evolution pace of the brand in all other MSs). Obviously, most of the MSs are now in a situation of newcomers with at least one eco-label holder and performing some marketing and promotion efforts. These newcomer MSs are facing a dilemma situation : either they become rapidly leading countries or they stay very close and near to late comer countries. The success of the scheme at the European level will thus depend on the ability of the EUEB and the Commission as its secretariat to drive most of the newcomers to a leading position. Such success stories will then also fuel the learning process for observers and notably the 10 Candidate Countries to join the Union in the next few years. Although there is not a unique and systematic link between the level of resources devoted by each Member State and the achievements, a minimum budget and human resources are always necessary to reach some results. As long as some CBs wouldn t have at least one person dedicated to the EU Eco-label and a specific budget, the scheme will be under its real potential of market penetration. That means the doubling (or more) of the resources of late comers and some of the new comers MSs and a better allocation of available resources for some of the dynamic countries, in order to develop more promotion and marketing activities. The development of marketing activities requires specific skills in the field of products promotion and selling. They are likely to be more easily found in private companies (certification agencies) or dedicated organisations (eco-labelling structure) than in public organisation (ministries). In the case of the CBs as part of a ministry, cost-efficiency means like co-operation with the helpdesk in Brussels, translation of parts of the Eco-label website, distribution and reprints of promotional materials made available by the Commission should be preferred. The decision to sub-contract some marketing actions to a specialised company can also be an appropriate mean (thus to increase the budget rather than the staff). TN SOFRES Consulting 10.
Other considerations and recommendations, including product groups selection Apart from the resources, several marketing issues still need to be addressed by the EUEB members in the near future. A permanent management group on marketing is foreseen involving the Commission and the helpdesk. There are linked to the characteristics of the Eco-label product and of its market. The market of the Eco-label product that the EUEB has to sell is characterised by: a level of both the offer (of eco-labelled products) and the demand still low today, a demand at three levels: the demand of the Eco-label logo by producers, the demand of the Eco-label logo and of eco-labelled products by retailers, the demand of eco-labelled products by consumers / professional purchasers. Thus the development of both the offer and the demand involves the three types of actors: producers, retailers and consumers. The marketing strategy has to be demand-oriented, with these three levels (the strategy for the two types of consumers, professional or not, is necessarily different). Considering the limited resources of the EUEB, its marketing actions 1 have to be cost-limited but sufficiently well defined to create several multiplying effects through the pressures that each type of actors can bring on the two others. 2 Producers EUEB 1 1 Retailers 2 1 Consumers Professional purchasers TN SOFRES Consulting 11.
To be attractive to producers and retailers (demand side) The selection of new product groups has to take into account the following considerations among others: the range effect: retailers will communicate in stores only if the eco-labelled products can create a sufficient range effect, i.e. if there are enough product groups in the assortment of labelled products thorough the store. retailers own brand products: the choice of product groups where the market share of private label products is significant will meet with the interest of retailers as producers. A survey about: What is an eco-product for consumers? High consumers expectation the interest of consumers: the perception that consumers have of a product is very subjective and not only (or not necessarily) linked to the Improvement Priority Significant market share of actual specificities of the product itself. For the of the product retailers own EU eco-label, it means that the product groups range effect groups brand products where the consumers expect to find ecoproducts are not necessarily the less environmental friendly ones proven on a scientific basis. What is at stake is how to hold the attention of the consumers. What is an ecoproduct for consumers? is an issue which has not been addressed yet. A survey covering several EU countries will bring useful information House care products, Laundry care, Toiletries, Kitchen about it. In this context, more know-how from the appliances, Kitchen accessories, Textile products, Sport corresponding EUEB stakeholders and the equipment, Entertainment, Toys, Car products, Building materials, foreseen consultation process of national Electrical fittings, Lighting, Fixings, Gardening, Flowers... consumer associations (Article 8 of the Reg.) TN SOFRES should Consulting also be of some help. 12.
To be attractive to producers and retailers (demand side) (contd) The offer to producers and retailers has to integrate: attractive arguments aiming at convincing them that the EUEB adopts a professional approach, not only scientifically based but also (and mostly) market-oriented, in particular in the PGs selection procedure (which has to meet companies marketing strategies); the assurance that the fees will be well used. For instance, the creation of a fund for marketing purposes to which a part of their fees would be allocated would certainly contribute to that. the provision of useful information such as consumers perception (producers and retailers will be very sensitive to the provision of this kind of information); the provision of materials to assist them in their communication (internally and in stores) and staff awareness: leaflets, articles to be integrated in their own materials, training sessions of purchasers and sellers ; information regarding the communication / promotion action plan set up by the EUEB, at the EU level as well as at the national level. TN SOFRES Consulting 13.
To increase the visibility of the Eco-label (demand side) Organisation of or participation to large events, such as: professional fairs (e.g. PLMA annual fair), fairs opened to consumers (fairs on environmental issues ),thematic events in stores on a short period (imitating the white textile month, wine fairs ). For instance, the feasibility of an event such as the week of the eco-products could be considered. Public relations with press (specialised and non specialised, marketing...) and media. While this is started at EU level by the Commission s help desk, more action in all MSs is still necessary. To benefit from other initiatives (demand side) To reference the Eco-label in all relevant Internet sites (green purchasing, sustainable development ). To develop public and private procurement. To set up bridges with the other tools of the IPP (mutual recognition, explicit reference of the Eco-label in the other tools, facilitated attribution of the eco-label if the company is engaged in other IPP procedure and vice-versa ). To inform rating companies and investment funds already integrating ethical and environmental criteria about the Eco-label, e.g. in the financial sector. To optimise the use and the impact of the resources dedicated to the eco-labels (offer side) To clarify the complementary role of each EUEB stakeholder. To encourage co-operation with national eco-labels: promotion materials, contact with stakeholders. To share experiences and resources between CBs more universally and quickly, e.g. CBs geographically close, with similarities in their market (producers, retailers ). To facilitate the criteria setting procedure, in order to reduce the resources dedicated to that task and its duration, e.g.: addressing horizontal issues common to many PGs e.g. DID list, share of data with other labels about PG environmental impacts. To mobilise external budgets, such as LIFE projects and to present the scheme systematically to the national LIFE contact points. To develop harmonised tools and databases necessary to monitor the scheme: the achievements and market share of labelled products as well as the resources dedicated to the EU scheme, the places where the eco-labelled products are sold (stores, Internet), the evolution of the consumers perception about eco-products, the evolution of the notoriety of the Flower idea and concept towards different targets (producers, retailers, consumers, private and public purchasers, media), the evolution of the merchandising of eco-labelled products in stores. TN SOFRES Consulting 14.
I. Presentation of the Project TN SOFRES Consulting 15.
I. 1- Context and Aims of the Project Context of the project Regulation (EC) N 1980/2000 of the European Parliament and of the Council of 17 July 2000 on a revised Community Eco-label award scheme continues the scheme established in 1992. In accordance with this Regulation, a Community Eco-label working plan had be established by the Commission before the end of 2001, including a strategy for the development of the scheme between 2001 and 2004. It has been adopted in September 2001 and is going to be published. Aims of the project Phase I: To assess the past efficiency of the EU scheme (1992 : 2000), in terms of resources devoted and market penetration Phase II: Exploring the different possibilities for the future development of the Eco-label, in terms of impacts and market penetration (2001 : 2004) TN SOFRES Consulting 16.
I. 2- Overall Methodology European Eco-Label National Labels 1.a Achievements 1.c Achievements Phase 1 1.b Resources 1.d Resources Assessment 1992-2000 1.e Diagnosis 2.a Realistic success goal 2.b Scenarii analysis (resources) Phase 2 Projection 2001-2004 2.c Recommendations level of resources allocation of resources new product groups other recommendations TN SOFRES Consulting 17.
II. Phase 1: Assessment 1992-2000 TN SOFRES Consulting 18.
II. 1- Phase 1 Methodology The period covered According to the terms of references, the quantitative assessment of phase I covers the 1992-2000 period Nonetheless, at the end of phase I (June 2001), we made the decision to include, in a specific chapter, the available data (labelled products LPs, awarded companies ACs) regarding the first 6 months of 2001 And the last evolutions of the EU eco-label scheme have been integrated on phase II analysis Availability of the necessary information for phase 1 (Assessment 1992-2000) No comprehensive and up-dated database was available at the beginning of phase 1 It has been necessary to create a dedicated database, fed up with several information sources (which has been more time consuming than what was first expected) Several up-dating have been requested by the EC during the progress of the work TN SOFRES Consulting 19.
II. 1- Phase 1 Methodology (continued) Information sources Achievements over the years 1992-00: European Commission: the data provided by the EC were the most complete and homogeneous for the number of LPs and ACs; due to continuous evolution (of the figures and their historical scope) during the progress of the project, several successive up-dating have been made Resources dedicated to the EU Eco-label (data very difficult to collect): Questionnaire sent to and interviews with the CBs (staff, budget, fees) (it has not been possible to collect the information for all the CBs, often due to a lack of available data) Some data provided by the EC (sales values of LPs for some countries) Web sites Previous studies National labels: Questionnaire to CBs Web site Existing studies TN SOFRES Consulting 20.
Several indicators can measure the achievements between 1992 and 2000 Indicators we have been able to quantify for all product groups number of product groups for which criteria exist number of product groups for which at least 1 product is labelled number of labelled products number of companies awarded level of concentration market share of some labelled products fees revenues Indicators we have not been able to quantify for any product group number of product groups which have lost their labelled product(s) number of products which have been labelled and are not any more today number of companies which have been awarded and are not any more today market share of some labelled products (only quantity for Paints, ) TN SOFRES Consulting 21.
II. 2- Assessment 1992-2000 of the European Eco-label TN SOFRES Consulting 22.
Criteria existed for 15 product groups (PGs) in 2000 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 Number of product groups for which criteria have been published 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 PG with at least 1 product labelled PG with no product labelled Only 3 PGs have no product labelled Year of publication Dishwashers Washing machines Laundry detergents Light bulbs Tissue paper Soil improvers Paints & varnishes Copying paper Refrigerators Bed mattresses Footwear Textile products Personal computers Detergents for dishwashers All purpose cleaners Hand dishwashing detergents Portable computer TN SOFRES Consulting 23.
276 products have been labelled between 1992 and 2000 NB: it should be noted that the accuracy of this indicator is very poor because of a lack of common definition between MSs regarding what a product is (difference between product and reference ) Number of new products labelled per year 2000 1999 1998 1997 1996 1995 1994 1993 1992 0 4 6 7 20 27 31 71 110 0 10 20 30 40 50 60 70 80 Source: From European Commission data TN SOFRES Consulting 24.
The 2 peaks followed the introduction of new criteria 2000 1999 1998 1997 1996 Textile products Footwear P&V 49 39 12 4 3 21 Soil impr. 4 21 15 5 121 20 P&V 7 2 17 P&V 1 Tissue Paper 57 P&V 14 Textile products & footwear in 1999 Tissue Paper 1995 1994 1993 4 Tissue Paper 7 Washing machines 6 P&V in 1996 Number of new products labelled, by PG 0 20 40 60 80 100 120 Source: From European Commission data TN SOFRES Consulting 25.
The 2 peaks followed the introduction of new criteria (contd) 2000 B DK ES ESC FR IT PT SV 2 17 1 22 9 48 8 3 1999 1998 3 3 18 1 4 11 4 2 7 12 6 5 ES+ESC+FR+IRL+IT+NL+SV DK+EL+FI+FR+IT+SV+UK 1997 1 3 21 13 ES+FI+FR+NL+SV 1996 4 1 14 16 36 DK+ESC+FR+PT+SV 1995 4 UK 1994 7 UK 1993 6 UK Number of new products labelled per MS 0 20 40 60 80 100 120 Source: From European Commission data TN SOFRES Consulting 26.
60 different companies have been awarded between 1992 and 2000 2000 22 1999 14 1998 9 1997 1996 6 7 Among the 60 companies, 60% have been awarded in 1999 and 2000 1995 1 1994 0 1993 1 0 5 10 15 20 25 Number of new companies awarded Source: From European Commission data TN SOFRES Consulting 27.
A continuous development of the interest of companies 2000 Textile Products Soil. Impr. Footwear P&V 14 2 1 1 2 1 1 1999 3 5 1 1 1 1 1 1 Textile P.+ Soil Impr.+ miscellaneous 1998 1997 2 3 1 7 2 P&V +Tissue paper Textile P + P&V + Washing machines 1996 6 1 P&V + Tissue paper 1995 1994 1 0 Tissue paper 1993 1 Washing machines Number of new companies per PG 0 5 10 15 20 25 Source: From European Commission data TN SOFRES Consulting 28.
A continuous development of the interest of companies (contd) 2000 1 5 1 5 5 4 B+DK+Es+ESC+FR+IT 1999 2 2 7 1 1 1 ES+ESC+FR+IRL+NL+SV 1998 1 2 1 1 1 2 1 DK+EL+FI+FR+IT+SV+UK 1997 1996 1 1 2 1 1 1 1 1 2 2 ES+Fi+FR+SV+NL DK+ESC+FR+PT+SV 1995 1 UK 1994 0 1993 1 UK Number of new companies per MS 0 5 10 15 20 25 Source: From European Commission data TN SOFRES Consulting 29.
A quite high level of concentration of labelled products Product groups Member states P&V (107) Textile (55) 39% 20% 85% 276 products labelled (1992-2000) 75% 21% Sv (59) 20% It (54) Footwear (41) 15% 16% Fr (44) Tissue Paper (33) 12% 10% 10% Dk (26) Esc (26) Source: From European Commission data TN SOFRES Consulting 30.
A quite high level of concentration (contd): 5 countries gather 75% of the labelled products More than 20 Products labelled (1) Sv It Fr Esc Dk Pt UK # of new products 59 54 44 26 26 24 21 # of Cies awarded 8 5 16 8 7 2 7 CB creation date 1994 1997 1992 1992 1993 1994 1992 CB status (2) CA MoE CA MoE Eco MoI MoE Less of than 20 Products Labelled (1) Fi Es B El Nl Irl No Product Labelled (1) D Lx A # of new products 10 5 2 2 2 1 0 0 0 # of Cies awarded 2 4 1 2 2 1 0 0 0 CB creation date CB Status (2) 1994 1998 1992 CA CA MoE MoE Eco CA CA MoE MoE (1) between 1992 and 2000 (2) CA = Certification Agency; MoE = Ministry of Environment or EPA; MoI = Ministry of Industry; Eco = Eco-labelling organisation Source: From European Commission data TN SOFRES Consulting 31.
A quite high level of concentration: 4 PGs represent 85% of the total number of labelled products Product Group Number of products labelled (1) In % Number of Cies awarded (1) In % Age of the PG Indoor paints and varnishes 107 39% 19 32% 1996 Textile Products 55 20% 19 32% 1999 Footwear 41 15% 2 3% 1999 Tissue Paper 33 12% 6 10% 1994 Soil Improvers 19 7% 7 12% 1998 (1994) Washing machines 14 5% 2 3% 1993 Copying Paper 2 1% 1 2% 1996 Refrigerators 2 1% 1 2% 1996 Bed Mattresses 1 0.4% 1 2% 1998 Detergents for Dishwashers 1 0.4% 1 2% 1999 Personal Computers 1 0.4% 1 2% 1999 TOTAL 276 100% 60 100% (1) between 1992 and 2000 Source: From European Commission data TN SOFRES Consulting 32.
At a national level, a higher level of concentration for most of the countries 1 PG represent around 100% of the total number of labelled products 6 countries B, El, Fi, Irl, Pt, Sv 1 PG represent around 60-70% of the total number of labelled products 3 countries Dk, Es, It A fairly homogeneous split between 2 or 3 PGs 3 countries Fr, UK, Nl TN SOFRES Consulting 33.
At a national level, a higher level of concentration or most of the countries (contd) (1) Sv (59) Pt (24) Fi (10) Fr (44) 98% Paints 2% Computer El (2) 100% Paints B (2) 100% Paints Irl (1) 36% Soil improvers 30% Textile 32% Tissue paper 2% Paints 100% Paints 100% Soil improvers 100% Tissue paper UK (21) It (54) 72% Footwear 17% Tissue paper 9% Textile 2% Detergents Es (31) 71% Textile 13% Paints 6% Footwear 6% Copying paper 3% Mattress Dk (26) 58% Textile 24% Paints 43% Tissue paper 33% Washing machines 35% Paints 8% Refrigerators Nl (2) 50% Soil improvers 50% Washing machines (1) On the basis of the number of products labelled indicated in brackets Source: From European Commission data TN SOFRES Consulting 34.
Split of the labelled products per country (1) Paints (107 products) 7% DK 9% Fi 2% EL 2% ES 2% ESC 1% FR FR 24% Textile Products (55 products) IT 9% DK 27% 54% SV 22% PT ESC 40% (1) between 1992 and 2000 8 countries 4 countries Source: From European Commission data TN SOFRES Consulting 35.
Split of the labelled products per country (contd) (1) Footwear (41 products) 5% ES 5% NL Soil Improvers (19 products) Tissue Paper (33 products) 11% B 27% UK 95% IT 42% FR 84% FR 27% IT 2 countries 3 countries (1) between 1992 and 2000 Source: From European Commission data 4 countries 3% IRL TN SOFRES Consulting 36.
Still a low market share (1) of the labelled products The attempt to assess the market share of eco-labelled products has faced the problem of data availability: market size of the concerned segment mainly the sales value of labelled products (which is today scarcely available at the CBs or EC level) Decorative paints & varnishes 1999 Sv Fi UK Pt Es Fr Total EU Source Market Sales Value in a 263 150 1 311 188 506 1 300 3 618 CEPE (2) LPs Sales Value in Millions b 40 2.4 1.7 0.23 0.222 0.022 44.6 EC Millions (3) Market Share b/a 15% 1.6% 0.13% 0.12% 0.04% 0.002% 1.23% Tissue paper in France: 0.6% Textile products in France: 1.2% of interior textile market (1) Market Share = sales of labelled products / sales of the total market (2) Data from the CEPE. AS CEPE members represent about 85% of the market, we have adjusted the figures by a 15% increase (3) Relevant market segment: only Decorative (46% of the total market) TN SOFRES Consulting 37.
Human Resources in 2000: a real potential exists About 37 persons (eq. full time) dedicated to the EU Eco-label about 7 at the EC level and 30 in the CBs about 70% dedicated to technical activities about 30% dedicated to promotion / marketing activities Highly heterogeneous contribution of the various CBs more than 8 persons (2 CBs) between 1 and 3 persons (5 CBs) but less than 1 person (8 CBs) Evolution 1998:2000 For most CBs: constant level of resources (total & dedicated to promotion) For It & Dk: significant increase of resources (total & dedicated to promotion) Source: From CBs information or estimations when not available TN SOFRES Consulting 38.
Fees revenues Fees revenues reached about 92 850 Euros in 2000 (1) Evolution 1998-2000 a global fall of 90% mainly due to the loss of one high value product labelled in 1999 (washing machines in The Netherlands) but a rapid growth for some product groups Textile products: +77% (1998:00) Indoor paints and varnishes: +24% (1998:00) Soils improvers: +32%(1999:00) (2) Tissue paper: +3% (1999:00) (1) Data missing for Sv which may represent a significant share (2) Only since revision in 1998 Source: CBs TN SOFRES Consulting 39.
Budget in 2000 split between the various CBs About 2 524 756 Euros (1) dedicated to the EU Eco-label (2) about 30% at the EC level and 70% in the CBs about 45% dedicated to technical activities (3) about 40% dedicated to promotion / marketing activities (3) A limited budget at the national level between 0 and 500 000 Euros according to the countries the medium value reaches about 177 500 Euros (only CBs with a positive budget) Evolution 1998:2000 a global slight increase (1) Fees included (2) Missing data for El, D, A, Lx (3) Partial information from CBs Source: CBs TN SOFRES Consulting 40.
II. 3- Assessment 2001 of the European Eco-label TN SOFRES Consulting 41.
An important soar since January 2001 89 ACs: +29 since January 2001 More than 400 LPs: +100 new LPs in 2001 17 product groups:+2 new PGs in 2001 New ACs in 2001 per PG: Textile products: +13 ACs Paints and varnishes: +5 ACs Bed Matresses: +3 ACs Detergents for dishwasher: + 3 ACs Laundry detergents: + 3 ACs Footwear: +1 AC Dishwashers: +1 AC TN SOFRES Consulting 42.
An heterogeneous level of development amongst MSs CB # of ACs CB # of ACs CB # of ACs Dk 17 UK 4 A 0 Fr 17 Fi 2 Lx 0 It 12 Nl 2 El 9 Pt 2 Sv 9 B 1 Esc 8 D 1 Es 4 I rl 1 TN SOFRES Consulting 43.
II. 4- Assessment 2001 of 3 National / Regional Labels 3 national labels considered The Emblem (ESC) Created in 1994 by the Department of Environment of Catalonia Market size: 6 millions of inhabitants NF Environnement (Fr) Created in 1992 by the Certification Agency AFNOR Market size: 57 millions of inhabitants Nordic Swan (Dk, Sv, Fi, Nv, Ic) Created in 1989, co-ordinated by the Nordic Ecolabelling Board and run by dk TEKNIK in Dk Certification Agencies in Fi (SFS) and SV (SIS Eco-labelling) Environmental and Food Agency in Iceland Foundation for Environmental Product labelling in Nv Market size: 24 Millions of inhabitants TN SOFRES Consulting 44.
The Emblem (Esc): achievements till March 2001 Number of PGs for which criteria exist: 15 Number of PGs for which at least 1 product is labelled: 11 Number of labelled products (LPs): 806 Number of awarded companies (ACs): 32 Most successful PGs Products favouring water savings 19% of the companies awarded 83% of the products labelled Camp sites 16% of the companies awarded 1% of the products labelled Garbage bags 19% of the companies awarded 1% of the products labelled Recycled plastics products 13% of the companies awarded 6% of the products labelled 4 product groups= 77% of the ACs 91% of the LPs TN SOFRES Consulting 45.
The Emblem (Esc): resources Human resources 2 persons equivalent full time since 1995 25% of the staff dedicated to promotion and marketing activities Budget in 2000 about 137 500 Euros out of which 7.5% from fees (10 380 Euros) 40% dedicated to promotion/marketing since 1995 Evolution a slight increase from a starting point of 100 000 Euros in 1995 +37.5% from 1997 to 2000 TN SOFRES Consulting 46.
NF Environnement (Fr): achievements till 2000 Number of PGs for which criteria exist: 10 Number of PGs for which at least 1 product is labelled: 8 Number of labelled products (LPs): 394 Number of awarded companies (ACs): 45 Most successful PGs Garbage bags 31% of the companies awarded 58% of the products labelled Shopping bags 15% of the companies awarded 2% of the products labelled Paints 31% of the companies awarded 20% of the products labelled Individual compost containers 13% of the companies awarded 15% of the products labelled 4 product groups: 91% of the ACs 96% of the LPs TN SOFRES Consulting 47.
NF Environnement (Fr): resources Human resources irregular: from 1.6 persons equivalent full time in 1994 to 0.6 person in 2000 60% dedicated to promotion and marketing activities in 2000 Budget about 159 637 Euros in 2000 out of which 92% from fees (146 854 Euros) Evolution important investment in 1992 (41 641 Euros) increasing trend from 41 641 Euros in 1992 to 159 637 in 2000, except for 1996 and 1997 TN SOFRES Consulting 48.
Nordic Swan in Finland: achievements till March 2001 Number of PGs for which criteria exist: 31 Number of PGs for which at least 1 product is labelled: 29 Number of labelled products (LPs): 242 Number of awarded companies (ACs): 124 Most successful PGs Printing paper 34% of the companies awarded 21% of the products labelled Tissue paper 7% of the companies awarded 5% of the products labelled Printed matter 29% of the companies awarded 15% of the products labelled All purpose cleaners 6% of the companies awarded 10% of the products labelled 4 product groups: 76% of the ACs 51% of the LPs TN SOFRES Consulting 49.
Nordic Swan in Finland: resources Human resources Growing: from 2.5 persons equivalent full time in 1992 to 9.5 persons in 2000 10% dedicated to promotion and marketing activities in 2000 Budget about 605 800 Euros in 2000 a higher level of fees: 853 890 Euros in 2000 43% dedicated to promotion and marketing in 2000 Evolution From 138 500 Euros in 1993 to 605 800 in 2000 Between 1994 and 2000: +68% From 23% of the budget dedicated to promotion / marketing in 1994 to 49% in 1999 TN SOFRES Consulting 50.
II. 5- Diagnosis TN SOFRES Consulting 51.
Which level of human resources is necessary? High level of human resources may help to be successful... HIGH LEVEL OF HUMAN RESOURCES LOW LEVEL OF HUMAN RESOURCES RELATIVE SUCCESS EU eco-label It Dk National labels Fi EU eco-label Sv Fr Esc 8 m/yr 54 LPs & 5 ACs in 4 PGs 8.5 m/yr 26 LPs & 7 ACs in 3 PGs 9.5 m/yr 242 LPs & 124 ACs in 29 PGs 2.5 m/yr 59 LPs & 8 ACs in 2 PGs 1.1 m/yr 44 LPs & 16 ACs in 4 PGs 1 m/yr 26 LPs & 8 ACs in 3 PGs National/regional labels RELATIVE FAILURE UK (1) (1992-98) 14 m/yr 22 LPs & 3 ACs in 2 PGs (1) UK = 2.3 m/yr in 2001 and not the only reason for success but is not necessarily a guarantee of success... Fr Esc 0.6 m/yr 394 LPs & 45 ACs in 8 PGs 2 m/yr 806 LPs & 32 ACs in 11 PGs TN SOFRES Consulting 52.
Enough promotion & marketing activities are necessary EU scheme Promotion & marketing Product s labelled Companie s awarded PGs concerne d 3 m/yr (50%) It 54 5 4 & 60% of budget Dk 1.5 m/yr (18%) 26 7 3 0.6 m/yr (55%) Fr 44 16 4 & 80% of budget National/regional labels 1 m/yr (10%) Fi 242 124 4 & 40% of budget 0.6 m/yr (60%) Fr 394 45 8 & 80% of budget 0.5 m/yr (25%) EsC 806 32 11 & 40% of budget Evolution 1992-2001 Resources: recent increase Achievements: recent soar Resources: recent increase Achievements: recent soar Resources: stagnation of staff, increase of budget Achievements: regular increase Resources: increase Achievements: regular increase Resources: decrease of staff, increase of budget (1 Achievements: regular increase Resources: stagnation of staff, increase of budget Achievements: regular increase since 96 (1) due to the increase of fees TN SOFRES Consulting 53.
Other factors than CB resources may generate a successful PG... P&V Industry initiative B, Es, Fr, It, UK Retailers initiative It NGO pressure Strong link between criteria and environmental concern Es, UK No criteria in the national label Sv Textile Esc, It Fr, It Footwear It It It Tissue paper Fr, It Fr, It It UK Soil improvers B, Fr Washing machines UK UK Copying paper It Fr, It It Bed mattresses Es Dishwasher detergents It It It Source: Interviews of CBs by TN SOFRES Consulting in 2001 through a questionnaire TN SOFRES Consulting 54.
and a PG may be a failure despite the existence of resources Lack of interest of producers Lack of producers Problems of criteria Competition of national label / EMAS Level of fees or cost of tests Obstruction of a national federation Personal computers Fr Textile B, UK Esc Footwear Esc, Fr, UK Tissue paper Es, Esc, Fr B Soil improvers Esc, UK Es, It Washing machines Es, Esc, Fr, It B P&V Es, Esc, Fr Light bulbs Es, Esc, It, UK B, Es Fr Refrigerators Es, It, UK B Fr Dishwasher detergents Es, Esc, Fr, UK Esc Source: Interviews of CBs by TN SOFRES Consulting in 2001 through a questionnaire TN SOFRES Consulting 55.
Conclusion of phase 1 More resources are necessary for: establishing a European brand achieving a more even market penetration Promotion & marketing activities must be encouraged and take place in all MSs ( learning by doing effects, stimulating effects on observer countries) The choice of appropriate product groups is essential and more cross border cooperation particularly on key product groups will help TN SOFRES Consulting 56.
Appendix Phase 1 - EU eco-label TN SOFRES Consulting 57.
Resources: regular staff dedicated to the EU Eco-label by the CBs 8,5 8 7 CBs have more than 1 person equivalent full time and 8 CBs have less 3 2,5 2,3 1,1 1 0,8 0,6 0,5 0,5 0,5 0,5 0,3 0,1 0,1 DK It B Sv UK Fr EsC Es Fi EL NL D A PT IRL L (1) Estimation (1) (1) (1) TN SOFRES Consulting 58.
Resources: Status and origin of the budget of CBs Status Origin of budget MoE or other Ministry: It, Pt, UK, EsC, B, EL, L Certification Agency: Sv, Fr, Fi, Es, Irl Eco-labelling Organisation: Dk NL, D, A 100% funded by Government Mix Government and Certification activities/national Eco-label Funded by Government No dedicated budget TN SOFRES Consulting 59.
PGs existing in both EU and national/regional eco-labels EU eco-label National/Regional labels A D Es EsC Fi Fr Nl Sv Washing machines Dishwashers Soil improvers Tissue paper Laundry detergents Light bulbs Refrigerators Indoor paints & varnishes Copying paper Textile products Bed mattress Dishwashing detergents Footwear Personal computers Portable computers TN SOFRES Consulting 60.
Appendix Phase 1 - National/Regional Labels TN SOFRES Consulting 61.
The Emblem (Esc): number of labelled products (LPs) and awarded companies (ACs) 900 800 700 600 500 400 300 200 100 0 Total LPs Total ACs The soar between 1998 & 1999 is due to the sucess of one PG «products and system that favour the saving of water» 88 0 0 0 0 11 35 42 0 0 0 0 3 3 3 8 15 32 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 630 806 TN SOFRES Consulting 62.
The Emblem (Esc): level of concentration of LPs and ACs Product Groups LPs 2000 In % ACs 2000 In % Products and systems that favour the saving of water 665 83% 6 19% Recycled plastics products 49 6% 4 13% Paper and cardboard products 36 4% 3 9% Recycled cardboard and paperboard products 24 3% 2 6% Rubbish bags 10 1% 6 19% Regenerated base oils and the products which incorporate them 8 1% 1 3% Camp sites 5 1% 5 16% Compostable material products 5 1% 1 3% Traffic acoustic screens 2 0% 2 6% Cork products and processed cork products 1 0% 1 3% Tourist accommodation 1 0% 1 3% Leather products 0 0% 0 0% Rural accommodation 0 0% 0 0% Youth accommodation 0 0% 0 0% Boiler and water heaters 0 0% 0 0% TOTAL 806 100% 32 100% TN SOFRES Consulting 63.
NF Environnement (Fr): number of LPs and ACs 400 Total LPs Total ACs The soar between 1998 & 1999 is due to the success of the "garbage bags" 366 394 300 200 100 0 117 39 45 16 20 21 0 0 0 0 0 0 0 0 0 3 1992 1993 1994 1995 1996 1997 1998 1999 2000 TN SOFRES Consulting 64.