It is perhaps unsurprising, then, that retailers are looking for ways not only to reduce their effect on the environment but also to communicate that to customers.
Keen not to repeat the confusion surrounding nutrition labelling, many in the industry are calling for an industry-wide carbon labelling system. Last October, the Carbon Trust, in partnership with the BSI British Standards and DEFRA, set the wheels in motion with the launch of a draft standard for measuring the carbon footprint of individual products. The organisation says there has been “an exciting level of engagement from retailers”.
The case for a carbon label standard
Helps to reassure customers that retailers are acting on climate change.
The measurement process can educate retailers and producers. Going back to basics and looking at each ingredient, packaging and transport can provide valuable insights and highlight carbon hot spots across the business.
Collaboration across the industry can be a cost effective way to tackle a time-consuming and complex problem. The more the industry works together to collate data and produce reliable averages, the easier, cheaper and quicker it will be.
The Carbon Reduction Label
The label provides a measure of a product’s carbon footprint across its lifecycle, from source to store, to disposal of the finished product (excluding in-use emissions).
It will also allow businesses to demonstrate their commitment to reduce the carbon footprint of that product. Use of the label will be withdrawn if the footprint is not reduced within one year.
Providing this information on products can potentially address many misconceptions people have. Consumers and the media have become fixated on the idea of food miles and reducing packaging, but climate change impact can occur across the supply chain. For instance, with crisps, food miles account for less than 10 per cent of carbon emissions, whereas fertiliser production accounts for more than 15 per cent.
The draft standard outlining how to measure a product’s carbon footprint was unveiled in October 2007. Suppliers and retailers involved in the initial trial include Tesco, Coca-Cola and Cadbury-Schwepps.
The Publicly Available Specification (PAS) is due to be published in summer 2008. It marks the first rung on the ladder to producing a fully fledged British Standard.
Retailer involvement
TESCO At the beginning of last year chief executive Sir Terry Leahy pledged to put a carbon label on every product its sells. In October 2007, the supermarket group revealed it would be piloting the Carbon Trust’s draft standard on 30 products including orange juice, potatoes and light bulbs.
CO-OP The group is working to test the carbon footprint of the strawberries in its Truly Irresistible range, grown on a farm in Scotland. It is comparing them with strawberries grown in Spain.
BOOTS The health and beauty chain was asked to be one of the Carbon Trust’s first test cases at the beginning of 2007. The retailer chose to test its Botanics shampoo range. The carbon footprint of the product was reduced by more than 20 per cent as a result of changing the packaging from virgin plastic to part-recycled.
BRITISH RETAIL CONSORTIUM, FOOD AND DRINK FEDERATION and IGD have all come forward to say they want a standard carbon label.
Industry Concerns over the label
Confusing to consumers Some early reactions to pilots have found customers fail to understand the information and its significance. And, if they do understand the link, they are often unable to tell, for example, if 200 grams of carbon is high or low. Some customers also confuse it with fairtrade labelling.
A long way off Getting the label on a critical mass of products is likely to take years. While few products carry the label, it is difficult for customers to compare like with like and become engaged with the process.
Impossible to label everything Many retailers feel that given the amount of work it takes to label one product, to label every product they stock would be far too much work to contemplate.
Scope for inaccuracies For example, fresh produce can often be bought through agents and therefore comes from a number of different farmers, which use a variety of production methods.
Costs Such a massive exercise will undoubtedly cost retailers a lot, both in terms of time and money. Perhaps it could be better spent on other environmental projects.
Too much detail The industry already has a good idea of where the carbon hot spots are. Delving deeper could confuse the issue unnecessarily.
Carbon reduction is only one part of the story It may be a better approach to measure the sustainability of products as a whole – looking at issues such as fairtrade, biodiversity, use of recycled material and palm oil.
Limitations The way a product is used once it is placed in the hands of the shopper can often have a greater carbon imprint than production and transportation combined.
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