I spent part of last weekend catching up on my eco-labels. Several articles and a virtual conference nicely cleared up a cloudy Sunday afternoon and, at least partly, my persistent doubts about marketing with eco-labels.
Do eco-labels matter?
Yes and no.
It’s no news there are too many eco-labels polluting the market landscape, leading many consumers to question their validity or altogether give up on them in confusion. Particularly corporate labels seem to proliferate, even though they’re the least credible.
At the same time, eco-labels seem to work: a Fast Company blog post recently reported on an EPA study, which found that “a green label encourages people to shift their purchases toward environmentally-friendly products”. Many companies use eco-labels with success.
Independent or accredited third-party labels, particularly ones issued by government or nonprofit agencies, appear to be most effective and trusted (think Energy Star, USDA Organic, or LEED). In general, the longer a label has been around and the greater its reach, the better.
Where, then, is the line? What works? What doesn’t? What’s an eco-labeling company to do? I turned for answers to Sustainable Life Media’s virtual conference “Building Credibility, Avoiding Greenwash”, which took place on January 14th and is now available on demand.*
Eco-labels are for “Building Credibility, Avoiding Greenwash”
If you wish to tout your company’s or your product’s environmental horn, you will face a number of issues. The biggest one: consumers’ growing interest in green(er) products coupled with deep mistrust in green claims resulting from the revelations of greenwashing (by your competitors, of course).
High-level regulation to help guide your efforts does exist, albeit only in the form of guidelines:
- Green Guides by the U.S. Federal Trade Commission
- ISO 14063 by the International Organization for Standardization
- “Framework for Responsible Environmental Marketing Communications” by the International Chamber of Commerce
Eco-labels offer a communication shortcut. Leaving aside the confusion alluded to above, if you wish to use eco-labels you need to ask the following into consideration:
- What does the label claim? Make only specific claims that you can substantiate with verifiable data. In addition, only use labels that relate to the product’s primary benefits and its value proposition. Less is more.
- Whose label is it? First, note that only a few product categories boast labels with significant market share: food, cleaning products, paper/forest products, appliances, and cosmetics/personal care products. Though you can certainly explore a number of alternatives, your best bet is to use a label that comes from an independent third party your customers recognize and can trust. EcoLabelling.org is a good place to start your research.
- What are your customers looking for? Different people prefer different green attributes and focus on different impacts. Know who wants to hear what and say it (adhering to the previous two points, of course). As with any message, however, “green is what customers say it is”.
In its 9 presentations, “Building Credibility, Avoiding Greenwash” went into much greater detail than the quick summary I have offered here. If you’re interested in going more in depth, check it out – all the sessions are available on demand.
What’s your experience with eco-labels? Are you using them now or considering using them in the future? Why / why not?
***
Image credits: coffee bee and A Hermida
* Disclosure: Sustainable Life Media granted me a free press pass for the “Building Credibility, Avoiding Greenwash” event – regular registration for the online seminar series was $295.
