Recognizing growing consumer demand for products that do less damage to the environment, many companies have jumped on the "green" product bandwagon in recent years. From just 1989 to 1991, the number of products promoted as environmentally friendly leaped from 4.5 percent to 12.6 percent, reports Market Intelligence Service, a firm that tracks merchandising trends.
But using manufacturers' claims to identify environmentally preferable products, whether they refer to "highly energy efficient" air-conditioners or "100 percent recycled" paper, can be risky. Several companies attempting to market "environmentally friendly" goods and services have been found by the Federal Trade Commission (FTC) to be making unsubstantiated or deceptive claims.
Unfortunately, many government agencies -- and consumers in general -- do not
have
the time or resources to second-guess manufacturer claims and conduct
their own environmental analysis of the products available in the
marketplace.
The rise in green marketing, coupled with the lack of readily available, "independent" information for evaluating the preferability of products, has given rise to a variety of eco-labeling services. There are three main varieties of eco-labeling programs. Some programs, like ENERGY STAR (governmental) and Green Seal (private, non-profit), set standards for what constitutes an "environmentally preferable" product and affix a seal of approval to help consumers identify products that meet these standards. Other eco-labeling programs, like the FTC-administered EnergyGuide or the Scientific Certification Systems (SCS) Certified Eco-Profile (private, for-profit), provide detailed energy or environmental information on products to let consumers make more informed decisions. "Verification" eco-labels, like the SCS Claims Certification label and the Underwriters Laboratories Energy Verification Label (private, for-profit), validate manufacturers' environmental claims or specific performance statements.
This issue of Energy Ideas profiles several eco-labeling programs in order to identify resources that can help government purchasing agents more quickly and accurately locate environmentally preferable products. We examine the activities of nonprofit organizations, government agencies, private companies and manufacturer-based trade associations -- in the United States and abroad -- that test, certify and label products based on their energy and water efficiency as well as other environmental attributes. In "Don't Be Fooled: The Limits of Eco-Labels," we compare the eco-labeling schemes, discuss their limitations, and offer tips for incorporating them into procurement strategies.