ECO-MARKETING AND ECO-LABELLING: DOES IT ENSURE ...

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D.Grundey \65 ISSN 1648-4460 5.5 Analysis of Eco-labels in Europe (and Rest of the World) Researching Customer Loyalty in Lithuania The objective of this paper is to discuss the advantages and limitations of different kinds of eco labels in Europe within the framework of ecological modernisation. Within an integrated product policy (IPP) environmental product informadon is one important tool (Rubik, 2003a). In the business to consumer dialogue, eco-labels are a central part of "transmitting environmental information" (Gmndey, 2003). Other consumer oriented information channels are test reports and test notes from consumer organisations and test institutions, quantitative product information from producers on the package or information through internet, personal sales talks and advertising. Eco-labels include various symbols, schemes, and institutional and legal arrangements. We can distinguish between mandatory and voluntary labels in the following way (Rubik, 2003b): • Mandatory labels like the EU energy label, relevant for household appliances and mandatory labels for chemical products. • ISO-type I eco labels, classical third-party labels like the EU-flower, the German Blue Angel and the Nordic White Swan. • ISO-type II eco labels, self-classification by industry or retailers. • ISO-type III eco labels, quanthative environmental product declarafions (EPD). • Other relevant labels, including social labels and organic labels. greendOt • other not relevant labels, including recycling symbols like Ô the green dot'. The mandatory labels arc based upon EU-directives and are valid for chemical substances and household appliances in Europe. 3.3.1 ISO-type I labels The main advantage of ISO-type I labels probably is that they use simple symbols; it is easy to communicate the message to the consumers. In addition they gain credence by being scientifically based and organised through a third party control regime. Type I-labcls seem to work very well for consumables, providing information at the point of sales. Such labels will typically contain summed up informafion, where expert panels esfimate the relative importance of various impacts (pollufion, energy etc.), presenting the consumer with the result of a process, but with free public access to criteria. The average consumer just has to relate to the symbol. This simple presentation of rather complicated matters seems to have a potential for being met by high levels of trust from consumers. Typc-1-labcls' main shortcomings might be that they are national or regional, so far not a success on a European level. Further, they obviously work better for some types of products than for others, even with a number of national differences. Blue Angel" in Germany was the first voluntary ISO-type I label in the wodd, established in 1978. During the 90tics similar cco-labcls were ' The Dual System operates in conjunction with tltc existing municipal solid waste management structure in Gcmiany. Consumer product manufacturers pay fees to DSD (Duales System Dculsclitand GmbH) to place its trademark "green dot" on their packages. This symbol is intended to represent a recycling guarantee, for DSD then collects and sorts the packages consutncrs have discarded and directs Ihcm to rccydcrs. As long as the ordinance's collecting, sorting, and refilling quotas arc met, retailers do not have lo "take back" primary packages and consumers do not have to pay high mandated deposits on non-rcnilablc containers. Packaging waste is collected curb-side in DSD bins or in municipal bins placed around neighbourhoods for glass and paper. • The world's first cco-labcling progratn, Uluc Angd, was created in 1977 to promote cnvlrontncntally sound products, rclali\c lo olhcrs in the same grotip categories, litis cco-labcl relics on infoniialion and \olunlary cooperation, as well as on (lie motivation and the willingness of each individual lo make a conlribvilion towards environmental protection. The criteria TR.IiV.f/()lU/.l77().V,V IN nU.SINti.SS d- liCONO.\llCS\ Vol. 8, No I (16), 2009
D.Grundey 166 ISSN 1648-4460 Researching Customer Loyalty in Lithuania established in nearly all EU and EFTA countries (Rubik and Scholl, 2002) (Figure 2). 4500 40(Ю 3500 Э0(Ю 2500 20OT tsoo 1000 500 0 Hurnber of Products fabelled with the "Blue Angel" Status: September 1999 ra Ntffnber oT new Products n thie course of a year Expired contracts at the erxf of a year due to further dovelopmerit of criteria Updated number of labelled products on 31.12. of a year 1¿. Ш 1991 1992 1393 1994 1 995 1996 1997 1993 1999* Source: RAL, Unweltbundesamt; Status: September 1999 • status of 03.09 1999 Figure 2. Number of products labelled with the "Blue Angel" in Germany, 1991-1999 Most of the labels are nationally based and are run by national eco labelling bodies, with the exception of the White Swan^ established by the Nordic Council of Ministers and valid for all the Nordic countries (Norway, Sweden, Denmark, Finland and Iceland). The labels cover both consumables, durables and services, and the main focus is the environmental impact of the product, in a life cycle perspective. In most cases the classical eco-labels do not include foodstuffs. There are usually developed separate national labels for organic food. The criteria are developed in a multi-stakeholder perspective and the actual label is a positive, well-known symbol. The EU-flower'' covers goods and services within the European :'^'\ Economical Area and was established by EU directive in 1992. The EU-flower has so far not managed to function as an effective environmental product information scheme in Europe. for awarding the Blue Angel includes: the efficient use of fossil fuels, alternative products with less of an impact on the climate, reduction of greenhouse gas emission, and conservation of resources. Once approved, eco-labelcd products are reviewed every two or three years to reflect slale-of-the-art developments in ecological technology and product design. Germany's Blue Angel certification for computers is primarily concerned with waste avoidance and reuse potential. According to the web site, "Pursuance of these aims helps to prevent possible entries of pollutants into the environment, protect resources and save disposal site space." As a result, their Environmental Label is "awarded to those products which combine a potential longevity of the system and its components with a recyclable design and the opportunity to reuse and recycle used products or product components. In addition, the use of environmentally harmful substances shall be avoided wherever possible." The Basic Criteria apply to components of workstation computers, including workstations consisting of controller (console), keyboard and monitor. Most products that qualify appear to be of strictly European make and/or model. ' In November 1989, the Nordic Council of Ministers adopted a measure to implement a voluntary, positive co-labeling scheme in the Nordic countries (Norway, Sweden, Finland, Iceland, and Denmark). The objective of this ecodabcling was to provide information to consumers to enable them to select products that are the least harmful to the environment. Nordic Colabeling follows the ISO 14024 standard: "Environmental labels and declarations - Guiding principles". The criteria for colabeling include requirements for the composition of the product, constmction, materials, chemicals, marking of parts, waste disposal, recycling, energy consumption, noise level, ergonomics, electromagnetic fields and safety of use. The criteria base been fixed taking into account the environmental load during the whole life cycle of the product and the principles of the scheme for recyclable products (DFR - Design for Recycling). * The EU eco-labeling program was launched throughout the European Community in 1993 to encourage the manufacture of less environmentally damaging products. The European Union's Eco-labcl, a flower with the EU's star symbol, is awarded to products that have passed a life cycle analysis. On 26 February 1999 the Commission adopted the criteria for Personal Computers. These criteria are valid as of 1 March 1999 until March 2002 and producers can apply for llic eco-labcl. The product group definition is a commercially available stationary computers consisting ofa monitor, system unit, and keyboard. The criteria focus on: a) energy consumption, b) life-time extension, c) take-back and recycling, d) user instructions. RW^XKSVOIMATIONSLNMSLNVSS C~V.C0K0MICS, VOI. 8, No 1 (16), 2009
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