Sustainable products from the start
October 27, 2009
An eco-labeling tool helps a leading supplier stay ahead of the curve
Today's shopper is no stranger to eco-labels. ENERGY STAR®, EPEAT®, and Green SealTM are only a few of the innumerable logos certifying that products meet certain environmental requirements. In light of this trend, many consumer-facing companies are considering showcasing eco-labels on their products as an attempt to win the hearts-and wallets-of eco-conscious consumers in a struggling economy.
But what if a company doesn't sell directly to the consumer, and is in fact only one element of the end product's supply chain? Can these suppliers still take advantage of growing consumer interest in eco-labels? BASF, a leading chemical manufacturer, has demonstrated leadership in its supply chain by proactively measuring its products' environmental impacts against the eco-label requirements faced by its customers with the help of Five Winds' versatile eco-labeling tool.
Thinking ahead to the end consumer
As part of a Product Sustainability Round Table pilot project in 2007, BASF requested that Five Winds research the specific requirements associated with the most popular eco-labels on the market. BASF hoped to learn more about the criteria its customers are required to meet when they attempt to achieve certification. "We want to be strategic partners with our customers, understanding their product specifications in order to help them meet their requirements," said Patrick Meyer, Senior Product Stewardship Specialist with BASF.
To begin the project, Five Winds analyzed the current labels on the market and created a tool that was able to search and sort through a database depending on the user's request. For instance, if the user wished to learn about labels that are used in the electronics industry in Europe, the tool would generate a list of labels pertaining to those specifications. BASF was especially interested in discovering the most influential or popular labels in specific geographic locations or industries. Identifying these eco-labels would help the company in its aim to compare their products' environmental performance against the labels their customers often choose to pursue. To broaden its versatility, Five Winds enabled the tool to document the number of eco-labels that share similar requirements, such as the percentage of recycled content required. Lastly, BASF requested that the tool include information on when each eco-label is updated with new criteria and how this process occurs. This feature allows the company to consider the possibility for input and participation into the labels' review process. "We are using this tool for internal assessment, but will also work in partnership with our customers and other external stakeholders" said Meyer.
BASF-which has developed the tool even further into the BASF SELECTTM (Sustainability, Eco-Labeling and Environmental Certification Tracking) Tool-is now tracking eco-labeling trends to better understand their customer's drivers of environmental performance. Most importantly, the company can now compare the eco-labels' requirements to the sustainability features of their products. "In the value chain, BASF is upstream from the end product, yet it is demonstrating leadership with its interest in global eco-labels," said Laura Flanigan at Five Winds. "BASF aims to fully understand the environmental aspects associated with the products that use its materials, and it uses that information to improve its environmental profile."
The future is bright for eco-labels
BASF and other companies that consider their customers' drivers for sustainability stand to benefit greatly from the growing use of eco-labels and other factual data on environmental performance. The collective need of consumers for an easy way to identify environmentally preferable products is not bound to fade anytime soon. The European Commission has recently recommitted to fostering green procurement and has focused on scaling up the use of the EU flower - a Europe-wide symbol of environmentally-friendly products. At the same time, several U.S. thought leaders are striving to tackle eco-label confusion and help citizens recognize the information they can trust. Most recently, the World Resources Institute received a grant from Wal-Mart to develop a Green Standards Guide that will rate various eco-labels to help companies decide which ones best fit their needs. These and other efforts across the world will continue to raise the expectations and profiles that are communicated on products for decades to come.
For further information and a live demonstration of the Five Winds eco-label tool, contact Laura Flanigan at +1 (773) 698-8073 ext. 1.
