Impact of Sustainable Labels on Business Model (PDF)

Impact of sustainable labels on the business model. The case of B Corp companies Daniel Alonso-Martínez  About me Academic trajectory Degree in Business Administration (2011) Master in Ma...

Impact of sustainable labels on the business model. The case of B Corp companies Daniel Alonso-Martínez  About me Academic trajectory Degree in Business Administration (2011) Master in Management Research (2012) PhD in Management (2016) Associate professor in Management (2021) Villadangos del Páramo Topics: Journal: Technological Forcasting and Social Change Corporate Social Responsibility and Environmental Management León Sustainable Development Journal of Cleaner Production Review of Managerial Science  Outline 1. Workshop: Sustainable labels 2. B Corp certification 3. Sustainable labels and Sustainable Business Models  Workshop Search your Italian favorite label Sector, firms involved, stakeholders, sustainable impact Apps related with this label Country in which this label is relevant Sustainable Labels  Marchio "Made Green in Italy" Sustainability certification for Italian products The "Made Green in Italy" label is an official Italian sustainability certification created by the Ministry of Environment, Land, and Sea Protection. Its aim is to promote Italian products with low environmental impact, encouraging conscious and sustainable consumption within Italy. Products awarded this label are assessed through a Life Cycle Assessment (LCA), ensuring they meet specific sustainability criteria.  Examples of Certified Products Agricultural and Food Products Fashion and Textiles Design and Home Decor eco-friendly materials EU Ecolabel The EU Ecolabel is an environmental certification from the European Union, applicable in all member countries, including Italy. It was created to identify products and services with low environmental impact, helping consumers make responsible, sustainable purchasing decisions. The label covers a wide range of products, excluding food and medicine, and is based on a comprehensive analysis of ecological criteria. EU Ecolabel Reduction of Emissions and Life Cycle Impact: Resource Assesses the product’s Consumption: Certified entire life cycle, from products produce fewer raw material extraction emissions and use to waste disposal water and energy more efficiently Safe Chemical Use: Products must avoid harmful chemicals for both environmental and human health Examples of EU Ecolabel-Certified Products in Italy Cleaning and Household Products Paper, Textiles, and Footwear Tourism Services APPs This Italian app helps consumers sort waste correctly by scanning the product’s barcode. While its main focus is waste management, it also addresses the environmental impact of products, promoting sustainability education in daily consumption. Focused on encouraging more sustainable behaviors, this app allows users to earn rewards by logging their eco-friendly practices, such as using public transport or purchasing sustainable products. Although it doesn’t exclusively focus on eco-labels, it raises awareness about responsible consumption.  Although not an Italian app, this app is widely used in Europe to identify product sustainability through eco-labels. It enables users to scan products and view their environmental and social impact. EcoGator is an app supported by the European Union, designed to help consumers make energy-efficient product choices, especially for household appliances. The app allows users to scan EU energy labels on products to access detailed information on energy consumption and environmental impact. Features: In addition to label scanning, EcoGator provides energy-saving tips and calculates long-term energy costs. Availability: The app is available in several EU countries and in multiple languages, making it accessible to a wide range of European consumers. Good On You is widely used in Europe to assess the sustainability of fashion brands. It provides information on a brand’s impact on people, animals, and the environment, based on factors such as certifications and eco-labels. Features: The app allows users to search for fashion brands and view sustainability ratings, promoting transparency in the textile industry and helping consumers make ethical decisions. Availability: Available throughout Europe, with information on hundreds of brands, including many European brands. Originally created for the cosmetics market, this app is widely used in Europe to assess the safety and sustainability of personal care products. Think Dirty lets users scan a product’s barcode to see a breakdown of ingredients and their environmental and health impacts. Features: The app includes a scoring system that evaluates the “cleanliness” of ingredients, helping users avoid products with toxic or unsustainable components. Availability: Though it started in North America, the app includes a database of many European products and is popular among sustainability- conscious consumers.  Sustainable Labels THE CERTIFICATION ATTESTS THAT THE PRODUCTION OF COFFEE, TEA AND COCOA IS EFFICIENT IN TERMS OF THE USE OF NATURAL RESOURCES, EQUITABLE FOR LOCAL PRODUCERS, RESPECTFUL OF ECOSYSTEMS AND MINIMISES THE WASTE GENERATED. INDICATES THAT A MANDATORY INTEGRATED MANAGEMENT SYSTEM LEVY HAS BEEN PAID TO CONTRIBUTE TO THE SEPARATE COLLECTION AND SUBSEQUENT RECYCLING AND/OR TREATMENT OF THE PRODUCT PACKAGING, ONCE THE CITIZEN HAS DEPOSITED THE PACKAGING IN THE RELEVANT SEPARATE COLLECTION SYSTEMS. INDICATES THAT THE PACKAGING/PRODUCT CAN BE RECYCLED, BUT NOT NECESSARILY THAT THE PACKAGING/PRODUCT IS MADE OF RECYCLED MATERIALS. IDENTIFIES THE MOST ENVIRONMENTALLY FRIENDLY PRODUCTS, FROM THE POINT OF VIEW OF MINIMISING WASTE GENERATION, REDUCING EMISSIONS, REDUCING CONSUMPTION OF NATURAL RESOURCES, ETC.  Sustainable Labels ENSURES THAT THE PRODUCT HAS BEEN GROWN, HARVESTED AND/OR EXTRACTED USING ENVIRONMENTALLY AND SOCIALLY RESPONSIBLE PRACTICES. GUARANTEES THAT PRODUCTS/PACKAGING OF FOREST ORIGIN (WOOD, CORK, PAPER) COME FROM FORESTS MANAGED BY OWNERS OR MANAGERS IN A RESPONSIBLE WAY. ENSURES FAIR TREATMENT BETWEEN PRODUCERS, WORKERS AND BUYERS, GUARANTEEING A FAIR PRICE FOR THE PRODUCT AND RESPECT FOR LABOUR RIGHTS, SAFETY, ACCESS TO HEALTH AND DECENT HOUSING FOR WORKERS. GUARANTEES THAT THE PRODUCTS (SOAPS, DETERGENTS AND CLEANING PRODUCTS) ARE DESIGNED AND MANUFACTURED IN A SAFE AND ENVIRONMENTALLY FRIENDLY WAY THROUGH THE EFFICIENT USE OF CHEMICALS AND NATURAL RESOURCES.  Sustainable Labels IDENTIFIES AND PROMOTES ENERGY EFFICIENT PRODUCTS AND BUILDINGS IN ORDER TO REDUCE ENERGY CONSUMPTION, IMPROVE ENERGY SECURITY AND REDUCE POLLUTION. EU ENVIRONMENTAL PERFORMANCE CERTIFICATE FOR ALL TYPES OF PRODUCTS, OTHER THAN FOOD AND MEDICINES. TAKES INTO ACCOUNT THE ENVIRONMENTAL IMPACT GENERATED IN THE ENTIRE LIFE CYCLE OF THE PRODUCT AND ESTABLISHES CRITERIA FOR DIFFERENT PRODUCT CATEGORIES. EUROPEAN UNION CERTIFICATE THAT CERTIFIES THAT THE PRODUCT COMES FROM ORGANIC FARMING. TAKES INTO ACCOUNT THAT THE PRODUCTION SYSTEM IS BASED ON AN OPTIMAL USE OF NATURAL RESOURCES, WITHOUT USING SYNTHETIC CHEMICALS OR GENETICALLY MODIFIED ORGANISMS. A SET OF ENVIRONMENTAL CERTIFICATES, VALIDATIONS AND VERIFICATIONS THAT ALLOW ORGANISATIONS TO ACCREDIT THEIR ENVIRONMENTAL COMMITMENT BY MINIMISING IMPACTS AND FAVOURING BETTER RESOURCE MANAGEMENT.  Sustainable Labels GERMAN CERTIFICATION FOR ENVIRONMENTALLY FRIENDLY PRODUCTS AND SERVICES. INFORMS CONSUMERS ABOUT PRODUCTS WITH A LOWER ENVIRONMENTAL IMPACT. OFFICIAL NORDIC CERTIFICATE THAT ESTABLISHES AN ENVIRONMENTAL LABELLING SYSTEM TO CONTRIBUTE TO SUSTAINABLE CONSUMPTION. HELPS CONSUMERS TO ACTIVELY CHOOSE THE MOST ENVIRONMENTALLY FRIENDLY PRODUCTS. CERTIFICATION BY THE FRENCH COMPANY ECOCERT, SPECIALISED IN PRODUCTS FROM ORGANIC FARMING. THE COMPANY HAS ITS OWN STANDARDS FOR THE CONTROL AND CERTIFICATION OF PRODUCTS, SYSTEMS AND SERVICES TO PROMOTE THE ADOPTION OF ENVIRONMENTALLY RESPONSIBLE PRACTICES. CERTIFICATION ISSUED TO PRIVATE COMPANIES BY B LAB (A US NON-PROFIT ORGANISATION), WHICH INDICATES THAT THESE COMPANIES HAVE A MINIMUM SCORE IN AN ONLINE ASSESSMENT OF SOCIAL AND ENVIRONMENTAL ASPECTS. Sustainabl e Labels THE CERTIFICATION ATTESTS THAT THE PRODUCTION OF COFFEE, TEA AND COCOA IS EFFICIENT IN TERMS OF THE USE OF NATURAL RESOURCES, EQUITABLE FOR LOCAL PRODUCERS, RESPECTFUL OF ECOSYSTEMS AND MINIMISES THE WASTE GENERATED.  INDICATES THAT A MANDATORY INTEGRATED MANAGEMENT SYSTEM LEVY HAS BEEN PAID TO CONTRIBUTE TO THE SEPARATE COLLECTION AND SUBSEQUENT RECYCLING AND/OR TREATMENT OF THE PRODUCT PACKAGING, ONCE THE CITIZEN HAS DEPOSITED THE PACKAGING IN THE RELEVANT SEPARATE COLLECTION SYSTEMS. INDICATES THAT A MANDATORY INTEGRATED MANAGEMENT SYSTEM LEVY HAS BEEN PAID TO CONTRIBUTE TO THE SEPARATE COLLECTION AND SUBSEQUENT RECYCLING AND/OR TREATMENT OF THE PRODUCT PACKAGING, ONCE THE CITIZEN HAS DEPOSITED THE PACKAGING IN THE RELEVANT SEPARATE COLLECTION SYSTEMS.  INDICATES THAT THE PACKAGING/PRODUC T CAN BE RECYCLED, BUT NOT NECESSARILY THAT THE PACKAGING/PRODUC T IS MADE OF RECYCLED MATERIALS.  INDICATES THAT THE PACKAGING/PRODUCT CAN BE RECYCLED, BUT NOT NECESSARILY THAT THE PACKAGING/PRODUCT IS MADE OF RECYCLED MATERIALS. ENSURES THAT THE PRODUCT HAS BEEN GROWN, HARVESTED AND/OR EXTRACTED USING ENVIRONMENTALLY AND SOCIALLY RESPONSIBLE PRACTICES.  ENSURES THAT THE PRODUCT HAS BEEN GROWN, HARVESTED AND/OR EXTRACTED USING ENVIRONMENTALLY AND SOCIALLY RESPONSIBLE PRACTICES. GUARANTEES THAT PRODUCTS/PACKAGING OF FOREST ORIGIN (WOOD, CORK, PAPER) COME FROM FORESTS MANAGED BY OWNERS OR MANAGERS IN A RESPONSIBLE WAY. GUARANTEES THAT PRODUCTS/PACKAGING OF FOREST ORIGIN (WOOD, CORK, PAPER) COME FROM FORESTS MANAGED BY OWNERS OR MANAGERS IN A RESPONSIBLE WAY. ENSURES FAIR TREATMENT BETWEEN PRODUCERS, WORKERS AND BUYERS, GUARANTEEING A FAIR PRICE FOR THE PRODUCT AND RESPECT FOR LABOUR RIGHTS, SAFETY, ACCESS TO HEALTH AND DECENT HOUSING FOR WORKERS. IDENTIFIES AND PROMOTES ENERGY EFFICIENT PRODUCTS AND BUILDINGS IN ORDER TO REDUCE ENERGY CONSUMPTION, IMPROVE ENERGY SECURITY AND REDUCE POLLUTION. EU ENVIRONMENTAL PERFORMANCE CERTIFICATE FOR ALL TYPES OF PRODUCTS, OTHER THAN FOOD AND MEDICINES. TAKES INTO ACCOUNT THE ENVIRONMENTAL IMPACT GENERATED IN THE ENTIRE LIFE CYCLE OF THE PRODUCT AND ESTABLISHES CRITERIA FOR DIFFERENT PRODUCT CATEGORIES. EUROPEAN UNION CERTIFICATE THAT CERTIFIES THAT THE PRODUCT COMES FROM ORGANIC FARMING. TAKES INTO ACCOUNT THAT THE PRODUCTION SYSTEM IS BASED ON AN OPTIMAL USE OF NATURAL RESOURCES, WITHOUT USING SYNTHETIC CHEMICALS OR GENETICALLY MODIFIED ORGANISMS.  A SET OF ENVIRONMENTAL CERTIFICATES, VALIDATIONS AND VERIFICATIONS THAT ALLOW ORGANISATIONS TO ACCREDIT THEIR ENVIRONMENTAL COMMITMENT BY MINIMISING IMPACTS AND FAVOURING BETTER RESOURCE MANAGEMENT. B Corp Certification is a designation that a business is meeting high standards of verified performance, accountability, and transparency on factors from employee benefits and charitable giving to supply chain practices and input materials. B Corp (https://www.bcorporation.net/en- us/certification/) In order to achieve certification, a company must: Demonstrate high social and environmental performance by achieving a B Impact Assessment score of 80 or above and passing our risk review. Multinational corporations must also meet baseline requirement standards. Make a legal commitment by changing their corporate governance structure to be accountable to all stakeholders, not just shareholders, and achieve benefit corporation status if available in their jurisdiction. Exhibit transparency by allowing information about their performance measured against B Lab’s standards to be publicly available on their B Corp profile on B Lab’s website. Impact areas  The process of certification Waiting for Improvement Start the the (just in some process Evalutation verification cases) (Impact B) Evaluatio Verificatio Final n n verificatio n  Sustainable labels and Sustainable Business Models Sustainability practices Business Sustainable Economic, social and Business model environmental profits model Ethics innovations Economic profits Sustainable labels Higher reputation Search your favourite B Corp Do something to capture answers Long tail business model The bait and hook model (bait and hook) Ethics innovations Crowfunding models Impact of sustainable labels on the business model. The case of B Corp companies Daniel Alonso-Martínez