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Sustainable label programs enjoy 40 percent boost
February 3, 2014
Sustainable label programs enjoy 40 percent boost
Production of certified sustainable goods, such as those carrying Fairtrade or organic labels, jumped more than 40 percent in 2012, increasing their market share across a raft of product categories.
A new study of the 16 most prevalent green standards initiatives across 10 commodities sectors records the rapid expansion in the development and use of voluntary standards over the past decade, transforming them from instruments for supporting niche markets into globally recognized names. In 2012, certified or verified production across the 16 standards reached an estimated trade value of $36.1 billion, while the market grew at a rate that was 20 times that of the corresponding conventional commodity markets.
However, while the report highlights strong growth in both production and sales of green labeled products, it also identifies a “persistent oversupply of standard-compliant products,” despite a growing number of companies making commitments to source sustainably. As a result, many products that could be sold as certified are not marketed as such.
The overarching message of the report is that while sustainability standards make and important contribution to the green economy by driving investment in sustainable technologies and practices, they cannot be assumed to deliver sustainable outcomes on their own. Bill Vorley of the International Institute for Environment and Development (IIED) said, complementary policies are required ? on top of business-led initiatives and sustainable sourcing policies ? to ensure labeling schemes are raising standards across entire sectors.
Read more at GreenBiz.
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