Eco-labels
Positioning your brand, product
portfolio and supply chain
Table of contents
Executive summary
1
The eco-labeling environment
2
Motivators of eco-label strategies
ōCoercive motivators
ōCompetitive and comprehensive motivators
3
4
5
Strategic choices
ōFinding the right match
ōChanging course on the supply chain
ōAlternative strategies
6
8
10
12
The bottom line on eco-labels
ōWhat steps can you take?
ōCrafting your eco-label strategy – A roadmap
13
14
15
About Deloitte Research
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Executive summary
“This is a complex market to play in,
especially for a global player. As a company,
you face a mosaic of different national
consumer demands, regulation, product and
production process constraints, the number,
size and geographic distribution of suppliers,
and the question of how to label a composite
product.”
Fortune Global 500 Consumer Products Company
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Eco-labels: Positioning your brand, product portfolio and supply chain1
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The eco-labeling environment
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Figure 2: Organizations managing eco-labels
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A noisy marketplace
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Industry Association
For-Profit
Government
Hybrid (for/non profit)
Non-Profit
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4
Source: 2010 Ecolabel Monitor
Figure 3: Types of verification/certification
5%
4%
27%
64%
First party
Third party
Second party
Varied
Source: 2010 Ecolabel Monitor
Figure 1: Eco-labels per launch year
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Eco-labels: Positioning your brand, product portfolio and supply chain3
Motivators of eco-label strategies
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Table 1: Motivators of eco-labeling and certification strategy
Coercive motivation
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Comprehensive motivation
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Coercive motivators
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Eco-labels: Positioning your brand, product portfolio and supply chain5
Competitive and
comprehensive motivators
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Strategic choices
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Table 2: Brand equity and the wholly sustainable enterprise
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Figure 4: Factors improving trust in standard systems
60%
55%
50%
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20%
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Content
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Source: ISEAL Alliance, “The ISEAL 100, A Survey of Thought Leader Views on Sustainability Standards 2010”
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Senior retail executive
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Table 3: Rigorous versus flexible certification criteria
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Advantages
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Table 4: Strategic dilemmas in the supply chain
Diversity
(conventional supplies)
Certified sustainable
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12
Alternative strategies
“Certification is about communicating relevant
environmental information to consumers; you can do this in
many ways.”
Fortune 100 consumer products executive
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Figure 4: Factors improving trust in standard systems
Harmonization of standards
5%
Consumer purchases of labeled
5%
More expertise
5%
More staff
9%
Partnership
9%
14%
Refinement of criteria
Increased Memebership
18%
27%
Marketing
Funding
32%
Public/Consumer Awareness
50%
0
10
20
30
40
50
Source: Golden et al, “An Overview of Ecolabels and Sustainability Certifications in the Global Marketplace,” Duke University, October 2010
Eco-labels: Positioning your brand, product portfolio and supply chain13
The bottom line on eco-labels
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“In the past it was market pull. In the future
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brand leadership.”
Large retail executive
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In the transition phase before the market floor has risen, due
to market self-regulation or policy/regulation, competition is
tight.
Fortune Global 500 consumer products executive
14
What steps can you take?
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Eco-labels: Positioning your brand, product portfolio and supply chain15
Crafting your eco-label strategy –
A roadmap
Is an eco-label right for you?
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Eco-label selection:
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16
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Are you ready for a supply chain transformation?
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Assess your overall organizational readiness:
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Authors
Chris Park
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Dinah A. Koehler, Sc.D.
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Acknowledgements
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About Deloitte
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Eco-labels Positioning your brand, product portfolio