When it comes to eco-labels and certifications, the name of the game is trust. Who can consumers trust in their search for credible, clear information – not for profits? Government? Retailers? Even for-profits? Join a lively debate and learn about the latest newcomers to the field of eco-labeling and certification — and decide for yourself. Note: This session is sponsored by Underwriter’s Lab in partnership with the EPA ENERGY STAR program.
Eco-Labeling in Green Product Marketing – Who Do You Trust?
1. Eco-Labeling
Whom Do You Trust?
Jacquelyn Ottman
Christopher R. Nelson
Amy Wolfrum
Marilyn S. Black, PhD
Jill Vohr
2. Eco-labeling—Whom Do You Trust?
Moderator: Jacquelyn Ottman, J. Ottman Consulting, Inc.
Christopher R. Nelson, UL Environment
Amy Wolfrum, ICF International
Marilyn S. Black, PhD, Greenguard, Air Quality Sciences
Jill Vohr, Energy Star Program, US EPA
4. Chris Nelson – Director, Global Commercial Development
UL Environment
Eco-labeling Panel: Trust and the Role of the Private Sector
5. Consumer Trust in Environmental Claims
• Consumers are beginning to place more of a focus on
environmental attributes for the products and
services they buy but primarily in areas they can
understand and make value judgments on
• Environmental claims have a significant brand value
attached and companies need to find more effective
ways to engage and educate consumers
• Strong reliance currently on manufacturer self-
declarations
• NGO’s are in much stronger position to clarify and
substantiate claims being made by companies
• All stakeholders would benefit from 3rd party
assessments, standards and certifications to help
end consumer confusion
6. Standards and Certification Programs
• Standards developed through recognized bodies will
provide a transparent, common framework by which Example Programs
organizations and companies can validate green claims -
leads to engagement of a wide range of stakeholders and
quicker market acceptance
• Establish common benchmarks with known qualifications
by which to validate claims being made – encourages
innovation and can adapt to new developments in
technology
• Criteria for testing and certification should be transparent
so technical expertise and qualification of verification
bodies can be validated
• Education and awareness programs need to be developed
to communicate focus and intent of programs – single
attribute vs. multi attribute vs. LCA
7. Why UL Environment?
• Strong brand recognition and trust through UL’s
heritage as the global conformity assessment leader Brand
for product safety
• Well positioned to be environmental standards and
conformity assessment leader
• Global capacity and capability to test a wide range
Standards & Trust
of environmental attributes Expertise
• 115-year history of standards development
expertise(1,300+ standards)
• Focus on knowledge and thought leadership through
training courses and advisory services Global Capability
• Powerful and credible resource against accusations
of greenwashing
8. Who is UL Environment?
• UL Environment helps support the growth and
development of sustainable products, services and Products
organizations in the global marketplace through
standards development, educational services, and
independent third party assessment and certification
to foster stewardship and respect of our
environment Energy Company
• Seeking to provide clarity and transparency to
increase credibility and confidence in the
marketplace
• A wholly-owned subsidiary of UL launched in 2009
Testing / Advisory
focused exclusively on environmental services Certification
Training
Services
• Developing a publicly available database where all
validated and certified products will be listed Standards
9. Contact Information
Chris Nelson
Director, Global Commercial Development
T: 847.664.3386
christopher.r.nelson@ulenvironment.com
http://www.ULEnvironment.com
888 - 4 - UL GREEN
ulenvironment@us.ul.com
10. Amy Wolfrum,
ICF International
Eco-labeling Panel: Trust and the Role of the EPA
11. How well is EPA/ENERGY STAR trusted?
29% consider US EPA “very reliable” as a source of information about protecting
the environment (compared to 27% for consumer publications, 29% for electric
utilities, 10% for news/media, and 7% for retailers).1
34% respond that the fact that ENERGY STAR is sponsored by the Federal
government increases its credibility.2
43% respond that the government backs the ENERGY STAR symbol, so they can
trust it.2
1 Source: Schulman, Ronca, and Bucuvalas, Inc., (DRBI) and Research into Action, Inc. 2008 Energy Conservation,
Efficiency and Demand Response.
2 Source: EPA Office of Air and Radiation, Climate Protection Partnerships Division, National Awareness of ENERGY STAR®
for 2008: Analysis of 2008 CEE Household Survey. U.S. EPA, 2009
13. Who is responsible/best equipped?
50% of TOP (Total U.S. Online Population) say that the Federal Government ranks
first or second in terms of who should take the lead in environmental issues (35%
for business and industry, and 21% for environmental groups).3
30% of TOP say that the Federal Government would be the most effective in
achieving a balance between environmental protection and economic growth
(15% for large companies, 8% for environmental groups).3
In sum, most studies support that although the Federal Government may not
enjoy a high degree of trust in the area of eco-labeling and/or claims, the public
considers them responsible for protecting them against false claims and suggests
EPA as a critical player in identifying a solution.
3 Source: GfK Roper Green Gauge Report, 2007
14. What is the Federal Government/EPA up to?
The Hill/Federal
Feinstein Bill, FTC “Green Guides”, USDA Organic
EPA
Administer Executive Order (EO) 13423. Potential for revision to further guide/
encourage Federal purchasing of environmental preferable products
Environmentally Preferable Products (EPP) leading the development of voluntary
consensus standards for environmental preferable products and services (via
ASTM, IEEE, NSF), particularly related to building products such as carpet, office
furniture, resilient flooring, wall coverings, roof membranes, and textiles, as
well as standards supporting green chemistry
Through Sustainable Products Network (SPN), EPA determining role in reviewing
and/or developing standards/labels for environmentally preferable consumer
products
Variety of eco-labeling programs – single and multi-attribute
16. Considerations for what makes a trustworthy eco-label/claim?
Science-based
Continuously improved
Involves open/balanced process
Unbiased
Internationally harmonized
Transparent
Robust
Market viable
Consumer-friendly
Tested/verified
17. Marilyn S. Black, PhD, Founder, Greenguard Institute
Air Quality Sciences
Eco-labeling Panel: Trust and the Role of Single Attribute Programs
18. Why Third-Party Certification Matters?
Why UL Environment
• Public health concerns
• XXXXXXXXXXXXX
• Trust and credibility vs. marketing
claims
• No official standards or
regulations
19. Preference for Handling IAQ Certification
• Almost 40% prefer
governmental involvement
• Approximately 30% prefer
independent organizations
• Consumers do not prefer
manufacturers, industry
trade associations and
retailers handle IAQ
certification
Source: Harris Interactive Consumer Study, Dec 2008
21. GREENGUARD - Single Attribute Program
• Reduce complexity
• Easy to understand
• Address health directly with sound scientific basis
• Less costly
• Allow consumer choice
• Provides building block to complex program
23. Jill Vohr – Energy Star, US EPA
Eco-labeling Panel: Trust and the Role of Retailers
24. Retailer Perspectives on Trust
We asked the retailers (Amazon, Best Buy, Lowe’s, Menards, Nationwide,
Office Depot, The Home Depot, Wal-Mart)
25. Schulman, Ronca, and Bucuvalas, Inc., (DRBI) and Research into Action,
Inc. 2008 Energy Conservation, Efficiency and Demand Response
Table 5
Reliability of Information Sources about…
Percent who say a source is “very reliable”
Protecting the
Saving energy
environment
Base: Asked of one-half of the sample.
2002 2004 2006 2008 2002 2004 2006 2008
Consumer publications 25% 30% 29% 30% 21% 26% 24% 27%
U. S. Department of Energy (DOE) 27 28 29 29 22 23 25 27
U. S. Environmental Protection Agency (EPA) 26 27 28 28 25 26 25 29
Electric utility 25 32* 28 27 20 20 24 29
State government 14 16 13 13 12 10 14 16
News/media 9 10 10 9 7 8 9 10
Contractors 8 8 9 8 5 4 6 5
Retailers 6 8 7 7 4 5 6 7
* Statistically significant difference from previous year (at the 95% confidence level)
26. Retailer Response to Increased Activity Re: Eco-Labeling/Claims
Retailers are changing their practices due increased
consumer concern about the environment – particularly
global warming and climate change. In fact, 90% of
Americans agree that there are important green issues
and problems.
-Environmental house cleaning
-Pushing suppliers
-Initiating environmental marketing programs
-Earnestly seeking out third-party guidance on how to
define green and sources for backing-up claims
27. Retailer Eco-”Messaging”
Retailers are taking different approaches to eco-labeling/claims:
-Creating retailer-specific eco-marketing “platforms”
-Developing programs that leverage individual third-party green certifications,
such as ENERGY STAR, WaterSense, Forest Stewardship Council
-Working to define their own specifications for green – with one or more
stakeholder
-A mix of the above
28. What are Retailers Looking for in an Eco-label/Claim?
-Consumer demand
-Credible source
-Easy to communicate/understand
-Supplier buy-in
-Cost-effective
29. What are Retailers Looking for in an Eco-label/Claim?
Wal-Mart/Arizona State University