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ECO – LABELLING – WHERE IT

STANDS, WHERE TO?
As awareness of the dangers of climate change increases, purchasers and
consumers of goods and services are interested in becoming better informed
regarding the impact of their choices on environment. Carbon labelling can
help educate purchasers and allow them to make more informed choices.
Carbon Labelling involves reporting how much greenhouse gases were emitted
to manufacture a product. There are several types of Carbon Labelling
available.

Carbon labelling began with an initiative taken by Carbon Trust, an

organization supported by the UK Government. Carbon Trust was created by
UK Government in association with DEFRA (Department of Environment,
Food and Rural Affairs) to create strategy for low carbon economy and to
implement it. The idea has been accepted and implemented by many others. In
2007, Carbon Trust started pilot carbon labelling project that resulted into
participation by number of major companies including Walker’s Snacks Ltd.,
Boot (pharmacy chain), Innocent Drinks and Tesco (UK’s largest retailer). The
program has significantly expanded the reach in the last three years and there
are now over 5000 products carrying the Carbon Reduction Label. Carbon
Trust estimates that these carbon reduction labelled products have about £ 2.7
billion in annual sales.

There are two types of Carbon Trust labels;

It shows the quantity of carbon right on the label.

It indicates that the company has committed to reduce the

products’ carbon footprint in partnership with the Carbon
Trust. When Carbon Trust label used on the product then it
means it commit to reduce carbon footprint in following two
years or it will lose the ability to continue to show the label.
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The standards for Carbon Trust label is based on PAS 2050. It is developed by
the British Standards Institute (BSI), UK Department for Environment, Food,
and Rural Affairs (DEFRA), and the Carbon Trust through extensive
consultation with more than 1000 stakeholders from business, NGOs and
government.

Are the consumers getting it?

With so much of effort being done to establish and communicate the carbon
footprint of products, the consumers are not always aware of the relevance of
these numbers in comparison with say a reference (or competition) product.
For example a consumer may not be directly able to compare the impact of 75
g of CO2 for a walkers chip or 800 g for a litre of Tesco’s milk on the
environment.

To avoid this confusion, independent labels such as the following are a good
way.

Label signifying 20% more carbon efficiency: Switzerland’s top

supermarket chain, Migros, has opted for an approach where labels on certain
of its private label products confirmed that the product is 20% more carbon
efficient than its counterparts within the same category. This system is
administered by ‘Climatop’.

Colour Rating: The climate Conservancy’s “Climate Conscious” Label goes the
route of gold, silver and bronze rating, indicating the decreasing order of
carbon intensity of the product.

Certified Carbon-free altogether: This label has started to come in use on

the products when their carbon footprint is completely neutralized by
offsetting actions.

One to Ten Rating: The outdoor product maker Timberland, under its ‘Green
Index’, rates its products from one to ten (1,2,3,....,...,10) in each of three
environmental areas; (1) Climate Impacts (2) Chemicals used and (3) Resource
Consumption. The lower the number, the lower the impact and better score.
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For example: In the area of resource consumption, a score zero represent 100%
recycled, organic and renewable material content. A score 10 represents
absence of recycled or organic or renewable material contents.

Timberland has Green Index on 14 of its products as on August 2010. It aims to

have all of its products labelled by the end of 2012.

Walmarts’ color or Number –Grade: It’s not yet decided but there is
possibility of colour or number –grade as labelling methodology. Since launch
in 2007, Walmart has been driving the sustainability index initiative. Colour or
Number –Grade label may be use by Walmart’s green label on product program.

A BOUT U S
Agneya Carbon Ventures came into existence with the purpose of “To help our
clients in understanding, establishing sound Environment Management
Systems, and pursuing sustainable business solutions through our various
services to abate direct and indirect impact on ecological balance.”

We have worked with companies across sectors enabling them to create

carbon accounting, monitoring and reporting systems. We have expertise in
the areas of carbon accounting and management, energy management
systems, voluntary/compliance carbon markets, environment management
and sustainability and carbon branding.

To know more about us, please visit http://www.agenya.in

Shailesh - +91-9890887670 – shailesh@agneya.in

Kedar - +91-9665407848 – kedar@agneya.in

Indrajeet - +91-9028788430 – indrajeet@agneya.in