Ecolabelling in the EU: Why going green is good for business

With so many products on the market, shopping today can be challenging. To stand out, many brands promote themselves as “green,” sustainable and environmentally responsible. But how can consumers trust these claims? 

The European Commission has implemented the EU Ecolabel to promote products that have a low environmental impact across their entire lifecycle—from the extraction of raw materials and manufacturing to packaging, usage and disposal or recycling—to highlight a product’s sustainability. 

Developed in 1992, the EU Ecolabel is a key voluntary guideline within the European Commission’s Sustainable Consumption and Production and Sustainable Industrial Policy (SCP/SIP). Its main objective is to educate and guide consumers to choose environmentally conscious products. 

Nicknamed the “EU Flower,” the label features a green flower surrounded by 12 blue stars. Close to 70,000 products feature the logo for having passed rigorous eco-testing.

Virtually, any product that’s manufactured for distribution, consumption, or use in the European Union (EU) is eligible for the EU Ecolabel. 

But to apply for the special labelling, you must be a manufacturer, importer, service provider, wholesaler, or retailer marketing products under your own brand name.

The criteria for the EU Ecolabel was developed with input from scientists, nongovernmental organizations (NGOs), member state representatives and industry stakeholders. 

Products can use the EU Flower only if they meet strict requirements that focus on their impact on the environment and biodiversity, as well as energy and resource consumption, waste generation and emissions. 

Today’s textile industry is one of the biggest greenhouse gas emitters in the world. Textile manufacturing has a big environmental impact:

• It uses large quantities of water and pesticides to grow cotton; 
• It uses water in natural fibre production; 
• It creates emissions from producing synthetic and cellulosic fibres; and 
• It uses non-renewable resources for synthetic fibres. 

This means there are many opportunities to address environmental performance issues within the textile product lifecycle, especially during manufacturing.

Other products, like electronics, have a very high environmental impact during their use and recycling phase, so the criteria for these products focus on the efficiency of their energy consumption. 

Consumers today are more sensitive to the impact they have on the environment and want to buy more environmentally friendly products—provided they’re properly certified by an independent organization. With the EU Ecolabel, your product is identified as one of the high environmental performers available on the market.

To meet procurement requirements on the business-to-business (B2B) level, suppliers are increasing partnerships with ecofriendly manufacturers who work in accordance with the International Organization for Standardization (ISO). Their ISO 14024 scheme involves compliance checks by independent, qualified certifiers, and the EU Ecolabel can be a valuable key for unlocking new business opportunities. 

During the criteria compliance phase, the EU Ecolabel can help increase your company’s profitability and brand reputation by finding ways of optimizing your products and production processes.

Under the Canada European Union Comprehensive Economic and Trade Agreement (CETA), 98% of EU tariffs on Canadian goods have been eliminated. This has strengthened trade between Canada and the EU, the world’s second largest market. By promoting the EU Ecolabel can also help Canadian companies compete and grow in Europe. 

The EU Flower on your products and marketing materials shows customers that your environmental claims are credible and trustworthy—meeting the increasing consumer demand for sustainable products. 

Consumer markets are changing rapidly as people demand healthier and more environmentally friendly products. Once a niche market, a “Lifestyle of Health and Sustainability” (LOHAS) is emerging globally and already reflects a third of the industrialized world. 

The worldwide LOHAS market is an incredible opportunity for Canadian brands because consumers buy based on values rather than price. Coupled with a solid Canadian reputation, the EU Ecolabel enables Canadian companies to clearly demonstrate that their products are already aligned with ecological market trends.

With the choice of ecolabelled goods, consumers have a direct impact on supply and demand in the marketplace, stimulating market development for environmentally responsible products. 

The EU Ecolabel is an effective way of empowering environmentally conscious shoppers to choose products that are more compatible with their personal environmental objectives. 
As it guides the market toward greater environmental awareness, products with the EU Ecolabel encourage corporate commitment to continuous environmental improvement.