The Environmental labelling

The Environmental labelling the case of sustainable tourist accommodation Dott. Michele Preziosi PhD University RomaTre Business Studies Department April 2017

Summary Environmental labels and declarations - Classification I II III Type European Ecolabel Economic and environmental impact of tourism Ecolabel for tourist accommodation services Ecolabel in Italian tourist accommodation 2

Environmental-Labelling Definition Environmental labelling provides an indication of the environmental impact related characteristics of a product or service* Aim: inform consumers and enhance business to business relationships *OECD 3

Environmental-Labelling Classification Positive Negative Neutral 4

Environmental-Labelling Classification Env. Labelling Programs First Party Third Party Product related (e.g. recyclable) Corporate related (e.g. Promotion of Corporate Env. ) Mandatory Voluntary Hazard or warnings (e.g., Pesticides) Info disclosure Env. Certification Programme ISO standards Seal of approval Single attribute I type II type III type 5

Environmental-Labelling Voluntary overall goal of these labels and declarations is: "...through communication of verifiable and accurate information, that is not misleading, on environmental aspects of products and services, to encourage the demand for and supply of those products and services that cause less stress on the environment, thereby stimulating the potential for market-driven continuous environmental improvement * *ISO 6

Environmental-Labelling History UN Conference 1992, Agenda 21 UN Conference 2002 Stakeholders concern for environmental protection Business opportunity è growing number of labels ègreen washing ènecessity of third party certification 7

Voluntary Environmental-Labelling Types Three major families of voluntary environmental labelling: ê 1. Type I Ecolabelling 2. Type II - self-declaration claims 3. Type III - environmental declarations (e.g. report cards/information labels) 8

ISO 14000 series ISO 14010 series Environmental Auditing ISO 14020 Environmental Labels and Declarations ISO 14021/2/3 Environmental Labeling Type II (Self- Declaration Environmental Claims) ISO 14024 Environmental Labeling Type I (Eco-labels) ISO 14025 Environmental declarations Type III (Environmental labels and declarations) ISO 14030 series Environmental Performance Evaluation ISO 14040 series Life Cycle Assessment 9

Type II - Self-declared Environmental Claims informative environmental self-declaration claims * Formalized set of environmental data describing the environmental aspects of a product (often single attribute) First party Neutral/Positive Voluntary B2C *ISO 14021:1999 10

Type II - Self-declared Environmental Claims is a "self-declaration" by the manufacturer about the ecological characteristics of the product itself The liability of this declaration relies entirely on the producer (no third party certification) ISO 14.021 11

ecological characteristics of the product (claims) Information accurate, verifiable, relevant and not misleading information Methods tested and proven on a scientific basis making it possible to obtain reliable and reproducible results (e.g. LCA) Need for the examination of the entire life cycle to verify and attest that an environmental impact has not been reduced at the expense of another All documentation must be made available (on request) No vague or no-specific claims (e.g. environmental friendly) B2C Type II - Self-declared Environmental Claims 12

Type II - Self-declared Environmental Claims eg. : The recycled content, recyclability or biodegradability of the product, the absence of substances harmful to the environment, non-toxic or natural finishing treatment, etc. Single environmental attribute 13

Type III Environmental Declarations voluntary programs that provide quantified environmental data of a product, under pre-set categories of parameters set by a qualified third party and based on life cycle assessment, and verified by that or another qualified third party * Third Party Neutral Voluntary B2B *ISO TR 14025:2006 14

Type III Environmental Declarations Is a document that allows to communicate objective information, comparable and credible, related to the environmental performance of products and services the information is for communication purposes only, the declaration does not contain any evaluation or minimum environmental performance levels 15

Type III Environmental Declarations LCA Methodology Contains environmental information on a product according to a predetermined parameters (product potential environmental impact associated with the entire life cycle) Applicable to all products classified in groups with defined Product Category Rules (PCR) established in order to make products comparable Subjected to an independent audit Verified and validated by an accredited independent institution: Swedish Environmental Management Council 16

Type III Environmental Declarations Objectives: Comparison between goods and services Enable competitive mechanisms GPP Guiding companies purchasing choices (sustainable production chain) 17

Type III Environmental Declarations Composition: Description of company and the product or service covered by the EPD Declaration of the environmental performance of the product or service Additional Information Information on the certification body 18

Type III Environmental Declarations Potential benefits: Reduction of environmental impacts related to the product system è new business strategies the enhancement of the use of technologies and eco-friendly materials Reduction of management and production costs More visibility - marketing 19

Type I Environmental Labelling A voluntary, multiple-criteria based, third party program that awards a license which authorizes the use of environmental labels on products indicating overall environmental preferability of a product within a product category based on life cycle considerations * Third Party Voluntary Positive B2C *ISO 14024:1999 20

Type I Environmental Labelling Are established by special organizations, which may be independent or institutional, which set the standard requirements that must be met for each product category (the EU Ecolabel falls into this category) 21

Type I Environmental Labelling 1. Protecting the environment Ecolabelling Objectives efficient management of renewable resources efficient use of non-renewable resources Waste reduction, reuse and recycling Protection of ecosystems and species diversity proper management of chemicals in products 2. Encouraging environmentally sound innovation and leadership market incentive to environmentally innovative and progressive businesses businesses can establish or reinforce a market niche and positive corporate image among consumers 3. Building consumer awareness of environmental issues heighten consumer awareness reliable information Trade-positive" tool (i.e. for promoting export products in foreign markets where consumer awareness and concern for environmental impacts is established and significant) 22

Type I Environmental Labelling 1. Voluntary participation Guiding Principles for Ecolabelling 2. Compliance with environmental and other relevant legislation 3. Level of overall performance, criteria must distinguish leadership 4. Based on sound scientific and engineering principles 5. Criteria must be credible, relevant, attainable, and measurable/verifiable 6. Independence 7. Open and accountable process 8. Flexibility 9. Consistency with ISO 14020 and ISO 14024 guiding principles (or other appropriate documents) 23

Type I Environmental Labelling Steps Selection and determination of product categories Development and adoption of appropriate criteria, standards or guidelines Certification and licensing 24

Type I Environmental Labelling Stakeholder participation Governments Other Interested Parties (e.g. media, NGOs, Academies, International Community) Ecolabelling Activities Consumers Industry and Commercial Associations Program Management Authority 25

Type I Environmental Labelling 26

UE Ecolabel What is the EU Ecolabel (EC Regulation no. 66/2010): is the European Union eco-label that rewards the products and services with the best environmental performances Why it was introduced: European strategy for sustainable Production and Consumption (SPC) and Sustainable Industrial Policy (SIP) Consumers demand: increased environmental sensitiveness Overcome national borders with an official label applicable throughout the EU Who it is aimed: Consumers: the logo make easy recognize product or service both environmentally friendly and good quality. Companies: the label adds value to business and products because it increases reputation, indicates corporate social responsibility and increases sales. 27

Regulatory framework evolution EC Reg. 890/1992 EC Reg. 1980/2000 EC Dec. 187/2003 EC Dec. 338/2005 EC Dec. 578/2009 EC Reg. 66/2010 28

UE Ecolabel Criteria To obtain the label a product must satisfied some criteria ê 1. Based on product with the best environmental performances on market 2. are determined on scientific basis 3. consider the entire life cycle of product: raw materials, operations and disposal 4. define the environmental requirements that product must have to get label UE Ecolabel environmental requirements* UE Ecolabel sustainability issues* *International Trade Center 29

UE Ecolabel Criteria 1. Most significant environmental impacts: Impact on Climate Change Impact on nature and biodiversity Consumption of energy and resources Production of waste Pollution due to physical effects Use and release of hazardous substances 2. Replacing hazard substances with safer chemicals 3. Reduction of environmental impacts due to durability and reusability of products 4. Net environmental balance between the environmental benefits and burdens, including health and safety 5. Social and ethical aspects 6. Criteria established for other official labels 7. Where possible, reduction of animal experiments 30

UE Ecolabel: licenses 2016 Total 1.998 Top three: 1. Tourism acc. (668) 2. Cleaners (285) 3. Tissue paper (136) 29 Product categories France (26%), Italy (18%) Germany (12%) *European Union 31

UE Ecolabel: products 2016 Italy (46%), France (10%) Spain (9%) *European Union Top three: 1. Hard coverings (12.117) 2. Tissue paper (7079) 3. Copy and graphic paper (4.313) Total 38.760 32

UE Ecolabel: Italy 2016 25000 Number of licenses and products released * 19383 18736 18380 20000 17320 16711 Products 15000 Licenses 12739 10169 10000 8982 5000 3822 2474 *ISPRA 0 21 92 1140 657 789 491 636 237 12 26 31 58 83 1384 84 174 250 332 245 292 287 324 341 365 243 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 33

UE Ecolabel: Italy 2016 Regional distribution of licenses:* 70 60 22% 50 40 26% 52% 30 61 53 43 29 29 27 20 17 9 6 6 5 4 3 3 10 North South & Islands Center 23 23 0 *ISPRA Dott. Michele Preziosi 2015 34

UE Ecolabel: Italy 2016 other Printed paper Indoor plants and varnishes Cosmetic products Hand dishwashing detergents Laundry detergent Shoes Texile Professional dishwashing detergents Indoor plants and varnishes Hard floor coverings All purpose cleaners and cleaners for sanitary facilities Camping Tissue Paper Tourist Accommodation *ISPRA 5 3 3 10 13 5 6 5 5 12 12 22 23 36 Number of licenses for product groups 2016:* 195 0 50 100 150 200 250 Dott. Michele Preziosi 2015 35

UE Ecolabel: Italy 2016 *ISPRA Dott. Michele Preziosi 2015 36

Analysis Of The EU Ecolabel In The Italian Tourist Sector 37

Economic role of tourism worldwide Tourism contribution to global GDP* Direct GDP share Total GDP share 2012 2,9% - 2056,6 billion $ 9,3% - 6630,4 billion $ 2023 estimation 3,1% - 3249,2 billion $ 10% - 10507,1 Billion $ Growth 4,4% 4,4% International tourist arrivals by 2030: +3,8%* *World Travel and Tourism Council **United Nations World Tourism Organization 38

Environmental impact of tourism 2005 Global share of tourism industry CO 2 emission* ê 6% - 26400 CO 2 Mt Sector CO 2 (Mt) Share per element (%) Airplane 515 40 Car 420 32 Other transport 45 3 Accommodation 274 21 Activities 48 4 Total 26,400 100 2035 emissions from the sector will increase by 160%* *UNEP UNWTO University of Oxford 39

Sustainable Tourism "Tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities" *UNWTO 40

Sustainability tools for tourism accommodation Codes of Conduct Best Environmental Practices Environmental Performance Indicators Environmental Management Systems Eco-labels ê Effective and measurable improvement of environmental performances 41

European Ecolabel for tourism Large number of voluntary certifications è confusions and uncertainty on consumers and structures ê European Ecolabel ê Eliminate confusion with an official Eu tool Spread good environmental practices 42

Ecolabel in Tourism Accommodation Services EC Dec. 187/2003 ê Extension to tourism accommodation services EC Dec. 338/2005 ê Extension to campsites services ê EC Dec. 578/2009 ê EC Dec. 175/2017 Meet customers demand*: 51% of tourists opt for environmentally friendly accommodation; 82% prefer an intact environment. *Studienkreis fur Umwelt und Entwicklung e V. on behalf of Umweltbundesamt, 2005 43

The aim of criteria The criteria aim to set limits on the main environmental impacts from the three phases of the life cycle of tourist accommodation service (purchasing, provision of the service and waste). In particular they aim to: 1. limit energy consumption 2. limit water consumption 3. limit waste production 4. favor the use of renewable resources and of substances which are less hazardous to the environment 5. promote environmental communication and education. 44

Criteria categories for tourism To obtain the label the services must meet 22 mandatory criteria and obtain 20 point choosing among 55 optional criteria Before service phase ê Seven broad criteria: Energy Water savings - 50 % of the electricity used from renewable energy - Boiler efficiency > 88% - Air Conditioning Class A efficiency - 80% Light Bulbs Class A efficiency - Compliance with national and local buildings codes - Reduced water flow from tap and shower - Waste water must be treated - Follow local water waste plan 45

Criteria categories for tourism To obtain the label the ser vices must meet mandator y criteria and optional criteria Operational phase ê Seven broad criteria: General Management - Environmental Policy Statement and Action Plan - Staff training on environmental measures - Data collection Waste reduction - No disposable products - No single dose packaging - Waste separation Info to guests - Active info on Environmental Policy and Action Plan - Info on environmental good practices in structure Info on EU Ecolabel - Guest Information on Ecolabel Optional Criteria 55 criteria 20 points from 55 criteria 46

Ecolabel in tourism accommodation services: Italy Temporally evolution of licenses:* 130 199 137 159 166 181 195 195 Europe: 668 licenses 33.4% of total 79 0 2 12 22 Italy: 29.2% of total EU licenses *ISPRA 47

Ecolabel in tourism accommodation services: Italy Territorial distribution 2012* Type of accommodation 2012* 120 100 Center 15% South & Islands 32% *ISPRA 80 North 53% 60 40 20 0 Type of accommodation 2012* Agritourism B&B House for holidays Hotel Residence Shelter Hostel 13 10 4 105 7 10 1 48

Environmental Performances Benchmark Ecolabel and other structures 1/3 Comparison of Ecolabel structures and other facilities in Trentino-Alto Adige* Electricity consumption Average consumption in Ecolabel structures Ecolabel compared to number of nights Other structures average 116.666,59 KWh/year 158.896 KWh/year Percentage variation -26,58% Water consumption Average consumption in Ecolabel structures Ecolabel compared to number of night Other structures average 3.579.093,18 l/year 4.161.000 l/year Percentage variation -26,58% *ISPRA, Federazione Italiana per l Uso Razionale dell Energia 49

Environmental Performances Benchmark Ecolabel and other structures 2/3 Comparison of Ecolabel structures and other facilities in Italy* Electricity consumption Average consumption in Ecolabel structures Ecolabel compared to number of nights Average of 4 stars hotel in North Italy 250.623,31 Kwh/year 588.235,29 Kwh/year Percentage variation - 57,39% *ISPRA, ENEA 50

Environmental Performances Benchmark Ecolabel and other structures 3/3 Comparison of Ecolabel structures and other European hotels* Electricity consumption 3 stars 4 stars Average consumption in Ecolabel structures Ecolabel compared to number of nights 61,34 kwh/pern 29,51 kwh/pern Other European structures average (LIFE study) [12] 83,5 kwh/pern 71,84 kwh/pern Percentage variation - 26,54% - 58,92% Water consumption 3 stars 4 stars Average consumption in Ecolabel structures Ecolabel compared to number of nights 280,27 l/pern 233,29 l/pern Other European structures average (LIFE study) 424 l/pern 335 l/pern Percentage variation -33,90% - 30,36% *ISPRA; Haleme H., Eckardt S. 51

Environmental performance benchmark Sustainability index for groups of impacts Ecolabel 71 Struttura standard 53 *Provincia Autonoma di Trento Agenzia provinciale per la protezione dell ambiente (ARPA) (2015)

CONTACT INFORMATION Departement of Business Studies Roma Tre University michele.preziosi@uniroma3.it 53