Eco-Labelling: Objectives & Benefits

Objectives of Eco-Labelling

The following are the objectives of eco-labelling

Protecting the Environment:

With increasing incidences of damage to the ecology, and phenomena such as global warming and depletion of the ozone layer, it is high time that mankind made a conscious effort towards safe-guarding the environment

Encouraging Environment Friendly Innovation:

A few great ideas are the product of an intelligent idle mind, but most successful innovations have been created from the drive to fulfil a need. Promoting environment friendly products as a policy may help foster an innovative culture which results in such products. A very common and highly successful example is the entire gamut of electrical appliances which are ENERGYSTAR compliant, not only do they consume lesser energy; they also result in lesser emission of greenhouse gases and result in cost-savings in the long-run.

Building Consumer Awareness:

Eco-labelling may help increase consumer awareness about the environmental consequences of their choices and may in turn facilitate better well-informed buying decisions. Such decisions will accumulate and the cumulative effort will be a better-informed “aware” environment-friendly society which exercises more caution and care towards the environment.

Benefits of Eco-labelling

Eco-labelling as an academic concept may appear to be nice, but when it comes to actually putting it into practice, companies balk immediately due to one or more of the following reasons

  • Their product/processes may not be environment friendly and hence they may not be eligible to be granted an eco-label
  • The process of certification may be complicated and time-consuming and the company may not see any tangible benefits from eco-labelling
  • There is no clear incentive for the company to consider eco-labelling its products if it’s already doing well in the market
  • The organization may view it as an additional (unnecessary) cost without any ROI

However there are very strong counter-arguments in favour of eco-labelling.

  • Eco-labelling showcases the commitment of the organization towards making environment-friendly products.
  • Certain European nations have stringent quality standards and exporters need Eco-Labels to target the EU market. Eco-Labels may in fact facilitate international trade in certain sectors (E.g. Textiles)
  • ENERGYSTAR is an example of an Eco-Label which has resulted in more energy-efficient products, significant cost-savings and considerable reduction in emission of greenhouse gases
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