How much should Green cost?, 10°

Alex R. 10°

Well now, here is the interesting one. I work to help verify product/supplier information against Green Standards. The recent trend has been for corporates/organizations/Government to rely on third party certifications to judge whether a product/service's Green claims are "credible". To me that makes a lot of sense because this allows for specialized investigations into a product/supplier's impact. The only thing is...this can end up costing a lot of money...which begs the question "Does this system disadvantage small suppliers, no matter how green they are, because they can't afford certification?". What could be done to obtain the same level of confidence in the "Green buying" space that a product or company's claims are genuine, without forcing them to spend loads of money on a certificate?

5 replies

Hello Alex...I agree that gaining "green" Certification, such as EnviroMark, is a time & financial challenge for small companies who have excellent green credentials. However, in my experiance, by doing comprehensive due diligence on your product offering and its sourcing, and by being completely transperant about your products and the "green" Certification that they carry, there are opportunities for small businesses to be seen and considered....and of course, sites such as Celsias do provide a profile for smaller "green" businesses.

Written in October 2009

Nigel B. 237°

As someone who led a project to make our energy product carboNZero certified, and who works with small business (Celcius Coffee), I have seen both ends of the spectrum. From a large company perspective, people generally don't trust big business in NZ so third party verification is a given. In regards to the particular certification you choose, I do have some questions I suggest any business should ask when investigating this. The main two being; what is the certification company doing to educate the market and increase awareness and customer demand for certified products and services (I argue it is their responsibility to grow awareness of the value of certification), and secondly what certification is relevant for the markets you sell your products into. If for example, you sell your products to the US and they have a certification programme that is recognised by your customers, imposing your certification programme which no one knows about requires you to then educate them, or it could result in percieved greenwash. Like anything, you need to do your homework on this and understand what matters to your customers.

Written in October 2009

Alex R. 10°

Nigel B, I fully agree with you about the role of educating and understanding the outcome in the market. I work to verify product information against Green Star NZ standards and there is a lot of room for confusion. Say you know that you need to test your product for low VOC emissions, there are so many different international standards and even definitions of what a VOC actually is that you could well too easily spend money on a test result that will not be compatible with the market that you are pitching to...so, lesson 1...to make certification cheaper make sure you get the right test or certification in the first place. BUT... the specifiers/buyers/market who are looking for such certifcations should recognise international equivalents....no the result may not be exactly 100% compatible but "yes" it really does prove the same point in the end and this product is therefore perfectly suited for our needs. There seems to be this massive confusion going around...like for Life-cycle-based ecolabels...people say that an international ecolabel (a robust one...I'll ignore the nonesense ones for the purpose of my discussion) is not appropriate to NZ because the situation here is different to wherever else...well OK but guess what...the product is manufactured somewhere else hence the eco-label in the country that it was manufactured in is actually probably better suited to its impact and since a majority of criteria are on sourcing and manufacturing then that eco-label really has covered all the important bases...in terms of the impacts for the product in use we come back to this international recognition need and that a VOC emission rate tested to one protocol or another all goes to show that it is low VOC...

Written in October 2009

Hmm, clearly a contentious issue, which I think is half the problem for organisations who are trying to measure suppliers performance on non-financial criteria. I used to write specifications for Environmental Choice NZ and have to say, international equivalent certification schemes are not, in many case, actually comparable. I wrote the carpet tile specification for EnvChoice NZ and in doing so, had to look at the other recognised labels around the world. Most of them were so out of date as to be meaningless - i.e. any manufacturer who met legislative requirements would pass or they were so soft that the same thing applied. We had to basically start from scratch and build something meaningful. The other issue is who pays for the certification? If a third part verifier is paid by the person getting the certification only, and are reliant on these companies for their income, how 'independent' do we think the certification actually is? Now, just to save people going nuts, there are many exceptions to that, so I don't mean all of them. The main issue is in who pays for the actual specification to be written. I know, from the specifications I wrote, that manufacturers try and steer it as much as they can, to make it easier for them to pass. I ignored them, but not everyone does. If income is derived from charging companies to go through the certification process, then it obviously follows that any organisation who wants to stay in business, needs to write the standards so that more than just a few can pass it, as they can't survive on just two best practice companies. I think, my main message is, that third party certifications, in my opinion, and having been heavily involved in the field, do not denote 'best practice', but are really only an indication of 'better practice'. So long as we remember this, we're all good.

One other thing to mention, while I'm on a role, is the focus on the product itself, what about the company? I can design and sell you the 'greenest' product, but if I am not, as a business, focussed on the other aspects of Corporate Sustainability, is the product really 'green'? I would argue not.

I've just finished, and had approved, the sustainable procurement resources for the Rugby World Cup 2011 and there is a very strong focus on the organisation itself, rather than the focus being on the product. It's my belief that if an organisation is doing everything it can, then the product, to some degree, will follow. Not, of course, that there aren't product specific criteria, I'm just suggesting this is just one aspect of a much larger issue.

Written in October 2009

Alex R. 10°

Michael, you make a fair point on the fact that lots of standards are indeed getting a bit old and out of date...and that's a problem that exists in each country where en Ecolabel has numerous product standards....so some standards for some products in Australia will be more stringent than the equivalent product standard in New Zealand, and Vice-Versa some product standards in NZ are better than elsewhere. But if we come back to the original question of "does it cost too much money" then it would seem that the "Ultimate" solution so to speak would be to have these eco-standards set through the usual consultative process but then heavily subsidized so that it would encourage more people to go through the auditing process without having to fork out thousands and thousands of dollars. Don't ask me where the money would come from...I don't know really, but there are ways of raising significant funds to assist such a project.
In response to the "Setting of the criteria not too high" issue, that's what happens with a simple pass or fail system...as you know already, a graded "bronze, Silver, Gold" type system allows to set those truly "best practice" standards at the top and provide a scale for people to work their way up.

Written in October 2009

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