Retailers are making great strides to improve the environmental impacts of their products. They are cutting down on packaging, sustainably sourcing ingredients, paying farmers better and making goods more energy effi cient.
But with all this action going on behind the scenes, how do businesses convey this information to consumers in a clear and simple way? It seems all signs point to labelling. While the savvy shopper may take the time to read every single piece of information on a product, many will not. Effi cient and eff ective labelling allows the consumer to glance at an item and know, instantly, about its credentials. Recently, there has been a boom in the number of ‘eco- labels’ on the market. Voluntary or compulsory, on the front and back, for recycling, origins, energy and carbon there is a whole host of information being thrust upon consumers and while it is useful, is it too much? And can it really sway a consumer’s decision?
In many cases it seems how environmentally friendly a product is, is not the fi rst thing on the consumer’s mind. It is, unsurprisingly, cost. Consumers like retailers have been hit hard by the recession meaning the price of the product is likely to take priority over its environmental impact. Despite this, there are still a group of consumers to whom environmentally friendly goods are high on the agenda and actively seek them out, which is made easier thanks to labelling.
Richard Dodd from the British Retail Consortium (BRC) explains: “It is fair to say it is not the key deciding factor of what people buy now, that is very much more about value which is particularly about price. But certainly there are a group of customers that are interested in all of this and that is probably bigger than it was 10 or 20 years ago.” However, eco labelling, like everything else on packaging is competing for space and may not take priority as manufacturers and retailers have to ensure they fulfi l legal requirements by including nutritional and allergy information, ahead of optional extras. Discussing eco labelling, Dodd says that while it is increasing in prominence it is important to make sure it is accessible to the consumer. “Eco labelling is defi nitely being explored and developed and we have seen that happening especially over the last few years. What we do need is to be confi dent that the information that is provided is reliable and gives a realistic representation of the environmental impact of that product and also that it is information that customers can use and want to know,” he says.
Dodd adds that retailers and manufacturers are “extremely focused on delivering the big environmental prizes” which can be gained from looking at the entire lifecycle of products. He believes that giving customers this information through labelling is likely to be a signifi cant part of packaging, making environmentally friendly choices and reducing negative impacts in the future.
The BRC has its own eco label – the on-pack recycling label. The voluntary scheme aims to help consumers to recycle more packaging and encourage local authorities to increase recycling for certain materials. First trialled by Asda in late 2007, and offi cially launched in 2009, the logo now features on 75,000 products.
Sustainability
A host of Sainsbury’s products feature the label. Commenting on the label’s impact, Justin King, chief executive of Sainsbury’s says: “The on-pack recycling label is the industry standard for communicating with customers. We need local authority support to move more materials into the ‘widely recycled’ category so that, together, we can really make a diff erence.” Sainsbury’s uses a range of other eco labels such as: the Marine Stewardship Council’s (MSC) sustainable fi sh label; the RSPCA’s Freedom Food label; the Forest Stewardship Council’s (FSC) mark; and, the Fairtrade logo. 22% of all UK Fairtrade sales come from Sainsbury’s, which says it is the world’s largest Fairtrade retailer. The supermarket giant also uses a green dot ‘Made with Sustainable Palm Oil’ logo. The topic has been forced up the agenda recently with a number of brands ensuring that the palm oil used comes from sustainable sources. Sainsbury’s fi sh fi ngers were the fi rst food product to be made with sustainable palm oil from an RSPO (Roundtable on Sustainable Palm Oil) certifi ed plantation. The retailer pledged in 2007 that it will only use certifi ed sustainable palm oil in its own brand products by 2014.
King says customers are looking for more ethical produce. “The credit crunch has not led to a values crunch but to a strengthening of values, irrespective of income. The more economic pressure consumers have come under, the more important quality and ethics have become. From animal welfare, to British sourcing, consumers are sending a clear message that they want values as well as value.”
Footprint As a retailer, proving that the business is delivering on these values can lead to a more loyal consumer base, according to the Carbon Trust which believes that customers are more likely to be faithful to a brand which can prove its green credentials. Darran Messem, managing director of certifi cation at the Trust, says: “From our own market research we know 56% of people would say they are more loyal to a brand if it can demonstrate it is taking steps to reduce its carbon footprint. It is not necessarily the case that customers want to understand the process for the carbon footprint but they do see value in the recognition for them to take action.
JUNE 2013 | RETAIL ENVIRONMENT 49
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