Product Policies and

Environmental Product Information

Åke Thidell17 April 2009

How to promote ”Cleaner Products”

• Society: policy intervention• Trade: encourage sale of greener product• Industry: develop and produce them• Individual Consumers and professional buyers: conscious

consumption, selective buying • Waste & recycling system: feedback

Public Policy

Policy principles

Policies

Policy instruments

Tools

Administrative instruments

Economic instruments

Informative instruments

Environmental Policy Instruments & Tools

Awards

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remov

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Permits

Bans

CORRECTS LACKOF INFORMATION

CHANGES INCENTIVES MANDATES SPECIFICBEHAVIOUR

Information-basedstrategies

Incentive-basedstrategies

Directive-based regulation

Adapted from Long B.: An overview of tools for environmental management, (OECD, 1997)

Product policies• Bans: hazardous substances• Economic instruments: fees, tax, reduced VAT• Innovation driver: technology procurement: specifications - let the best

win• Permitting processes: demands also on products, chemicals

substitution• Extended Producer Responsibility: take back, organise collection• Agreements: ”you do that and we leave you in peace”• Information: labels, campaigns, etc• Market driver: Green Public Procurement: buying cleaner products• And more.....

Extended Producer Responsibility

Liability

Financialresponsibility

Physicalresponsibility

Owner-ship

Informative responsibility

Green Public Procurement

• Aim: stimulate the market for environmentally benign products through incresed demand from the public sector.

Green Public Procurement

On top of ”normal” product information, the purchaser needs to know:

• Environmental significance of different product groups• Environmental aspects• What specific requirements to put on products/producers• There are products at reasonable price that meet requirements• How to verify producers’ information

Why not just plugg them in?

• Political balance between other interests• Context for legal systems• Legal tradition• Enforcement and follow-up• Fair design and implementation of policies• Insufficient information• Public acceptance

Environmental Product Information

• Informed purchase decisions• Instructions: how to use/not to use, how to dispose, what to do in

case of accidents• Marketing• Influence consumtion and production habits• Increase awareness

Types of product information• Informational

• Negative (warnings)

• Positive

• Voluntary

• Compulsory

What environmental product information systems are there in

Estonia?In EU?

Different kinds of information

Labels and logos

Statements Declarations

Private/Self-declarations

Certified/EPD

Energy- &contentdeclarations

Symbols

Claims

Explanations

Eco-labels

Private qualitylabels

ISO Type 1-3

Organiclabels

ISO - Three types of eco-labels

• Type 1. Verified by independent body, awarded to products fulfilling criteria corresponding to the best environmental performance within each product group.

• Type 2. Self-declared claims used by manufacturers to indicate the environmental aspects of a product or service. The message may be statements, symbols or graphics on product or packaging labels, product literature, advertising or similar.

• Type 3. A declaration certified by independent organisations, providing quantitative information from LCAs on the possible environmental impact of a product, leaving it to the consumer to decide which product is best.

Many labels do not fit in the ISO system

Note! Der grüne Punkt

(The Green Dot) is not an environmental

label.

The first Eco-label

Germany, Blue Angel First product 1979, over 4000 products, ~90

product groups Success factors: media and consumer

organisations 1/3 of the awards to foreign producers Fluctuating awareness, and popularity

The EU eco-labelling scheme

The EU flower can be used throughout the 27 Member States of the European Union and also Norway, Iceland and Liechtenstein.•1991, first product groups 1993

•1993-95: label was only awarded to two manufacturers (both in the UK)

•2001: 20 product groups, 3 under development

•2007: basically the same

In the Swedish Market

The Environmental Choice (Sweden)• First eco-label in Sweden, 1989

• 1400 products, 12 product groups

• Founded by environmental NGO + 3 retailers

• Paved the way for the SWAN

The SWAN (Swe, Nor, Fin, Den, Iceland)• National boards + Nordic coordinating body

• First product in 1992, today > 1500 products, 70 prod. groups

• Among the most “successful” eco-labelling schemes

EU

TAIWAN THAILANDGERMANYUSACANADAFRANCE

SWEDEN NORDIC COUNTRIES

JAPAN INDIA AUSTRIA

THE NETHERLANDS

THE CZECH REPUBLIC

CROATIA BRASILCATALONIASINGAPORE

Worldwide eco-labelling schemes

Global Eco-labelling Networkwww.gen.gr.jp

Eco-labels:

• Guides consumers and buyers

• Stimulates environmentally sound product development

• Based on ecological criteria and continuously higher demands

• Life-cycle considerations multi-criteria (several aspects)

• Information verified by a third party

Stimulates continuous improvement

Yes/No communication on market

Role of the Third Party

Eco-label competent body•Defines product groups•Defines environmental criteria•Issues licences & verification

Laws

Environmentalimpact

Products

Product group

Product group

Factors for Success

Consumer awareness and trust

Availability of labelled products

Product development

Willingness to buy

Producer interest

?

Why successful in Nordic Countries

• High consumer awareness and recognition of key labels

• Trustworthy both by consumers and producers• Media coverage and

campaigning/PR/information• Competing eco-label• Professional organisation• Retailer support

Examples from Lund

Examples from Lund

Other applications of eco-labels and information generated by the scheme

• Information wise; what’s so special with eco-labels?• How could that be utilised for other purposes?• What are the limitations of eco-labelling information?

Indirect use of eco-labels and information generated by the scheme

• Producers: – Design guide for product development– Guide to preferable materials– Structured environmental work/EMS like structures– Guide for certified EMS– Benchmarks and indicators

• Purchasers and GPP manual developers– Environmental significance of different product groups– Environmental aspects– What specific requirements to put on products/producers– There are available products that meet requirements

• Consumers/society– Awareness and knowledge on products and the environment

Environmental effects Improved environmental performance of products outside the eco-labelling led product groups

Environmental consumer learning

General awareness on environmental consequences of products and consumption, other than the one directly intended

Environmental development in product design

Re-design/innovations inspired by the eco-labelling criteria in product groups not covered by the eco-labelling schemeProduct modifications/re-design in order to meet the eco-labelling criteria without ambition to apply for a licenseInput to design guidelines

Environmental development for the products groups in question

Environmental pressure for entire product groupsBenchmark of environmental excellence (industry standard)Product or quality standards

Development of environmental product information

Inspiration for and input to other kinds of product informationInformation source for the development of purchasing guides

Development of environmentally adjusted organisational behaviour

Compass for the interpretation of environmental policiesAide for the development of Environmental Management SystemsProduct specifications in procurementGood image Cost avoidance

TCO’92, TCO’95, TCO’99• Established in 1992• Covers environmental labelling of office

equipment (displays, keyboards and system units, etc)

• Reduced electric and magnetic field emissions, energy efficiency, fire and electrical safety

• Demands on manufacture, recycling, and ergonomics.

The Swedish Confederation of Professional Employees (TCO)

• ENERGY STAR is a voluntary partnership between the U.S. Department of Energy, the U.S. Environmental Protection Agency, product manufacturers, local utilities, and retailers.

• Promote products with low energy consumption.

• Heating and cooling equipment, buildings, home electronics, office equipment, etc.

Forest Stewardship Council

• Established in 1993

• Several members, for instance WWF, Greenpeace, the National Wildlife Federation,.

• 3rd party certification insuring that products meets the standards for environmentally and socially responsible forestry.

http://www.foreststewardship.com/standards_policies/current_issues/policy.html

IFOAM• International Federation Of Organic Agriculture Movements -

world-wide movement of organic agriculture (1972), 600 member organisations in 100 countries (http://www.ifoam.org/)

• Member labels prove that products come from Organic Agriculture.

Germany UK Sweden

EU Organic Label

• EU directive• Stand alone or• Should be a parallel label

to other organic labels

• World Wide Fund for Nature

• Does not indicate the environmental performance of a product – NOT AN ECO-LABEL!

• Only proves that the company using it has donated money to WWF

• WWF partnership

Self-declared claims (ISO Type 2)

• Not verified by third party• Claims must be verifiable by company; this information must be available on

request to any person.

• Frequent use of pictures, symbols, etc. Thus, gives the basic rules for the making of environmental claims with symbols.

• Typically for specific claims, for example, recyclable, degradable, recovered energy, pre-consumer material, reusable, refillable, compostable etc.

Möbius loop: the only symbol likely to be standardised. Recyclable.

Specific requirements for selected claims

• Compostable• Degradable• Designed for disassembly• Extended life product • Recovered energy• Recyclable • Recycled content• Pre-consumer material• Post-consumer material

• Recycled material• Recovered (reclaimed)

material• Reduced energy

consumption• Reduced resource use• Reduced water consumption• Reusable• Refillable• Waste reduction

• EU energy label – compulsory - demonstrates energy efficiency of products

• Classifies products into 7 different energy classes, A++ to G on estimated energy consumption

• Energy efficiency is defined differently for different products

• Freezers and refrigerators: according to the energy usage in relation to storage volume and to the different storage spaces within the product

• Washing machines and dryers: according to their energy usage per kilogram of washing.

Refrigerator sales 1993-2003

0%10%20%30%40%50%60%70%80%90%

100%

1993 1995 1997 1999 2001 2003

>=DCBAA+&A++

Self-Declarations

• For instance Building-material declarations• BASTA – Hazardous substances in buildingmaterial– www.bastaonline.se

Self-declarations

• Less trusted because unverified• Difficult to interpret• Customers prefer the verified labels

Labels according to ISO

• Type I – Third-party labelling (1999)

• Type II - Self-declared environmental claims (1999)

• Type III – Environmental Product declarations (2000)

• But there exist modes of product-related environmental information that don’t fit into these categories!

TYPE III: Environmental Product Declarations

A quantitative description of a product’s environmental properties

TYPE III: Why EPDs?

• Meeting increased information demands on the market , mostly in B2B relations (Industry initiated – government sponsored)

• Allowing comparability between products• Input to environmental management systems and tools • Simplifying information exchange for purchasing, green

procurement and assessment of suppliers • Promotional purposes

TYPE III: general info

• Aims to communicated LCA results• Preset LCA categories of environmental concerns (e.g. Global

warming or acidification) • Quantitative parameters within the categories (e.g. C02 and

NOx)• Not excluding additional environmental information• Supposed to be additive, EPD for components aggregated

makes up the EPD for the result

The EPD process

• Consider available PCRs (Product specific rules)• Develop PCR is necessary and get it approved• Collecting LCA information & conduct LCA according to ISO 14 040• Compiling EPD information• Verification and registration

EPD Product categorieswww.environdec.com

• Food products and beverages• Wood and wood products• Pulp, paper and paper products• Chemicals and chemical products• Rubber and plastic products• Other non-metallic mineral

products• Basic metals• Fabricated metal products

• Machinery and equipment • Office machinery and computers• Electric machinery and apparatus• Radio, television and

communication...• Electricity, gas and water supply• Wholesale trade and commission

trade• Land transport• Post and telecommunication• Refuse disposal, sanitation etc

TYPE III: Current limitations with the EPD system

• Requires expensive LCA data

• Generic vs specific data

• Small number of EPDs hinders comparability

• Demands much knowledge to interpret, currently many actors lack resources and possibilities to interpret the data

• Supply push rather than demand pull

TYPE III compared to TYPE I

• More detailed information• No pass/fail criteria• “Open” to all products and services• Mainly directed towards purchasers in business and public

sectors• Business initiated and driven

Comparability between products - leaving it to the consumer to decide which product is best.

TYPE III: Consumer perspective

• Striking discrepancy between perception of consumers and usefulness stated by actual users.

• Level of detail gives a reliable impression.• Variation of data quality and format confuses.• Anyway difficult to compare products?• Questionable benefits for private consumers.• Support/aid/education for users.

Global Type III Environmental Product Declarations Network

• www.gednet.org