Although a new label that assigns all food products an environmental score may appear to be just another quality certification, it turns out to be more than just a tool for customers.

It might even be the driving force behind businesses making more information about their operations’ sustainability available.

“It all starts with data. There can be no new policy and innovation without it,” Koen Boone, MA, of Wageningen University & Research, declared in a recent WUR article. Koen will be speaking on this topic at the F&A Next global event “Catalyzing Sustainable Food&Agri Innovation” on the Wageningen Campus.

A food item’s sustainability can be determined by its eco-label. There are already several variations of such a label in use, and more and more stores are experimenting with it. Lidl tested coffee and tea in the Netherlands by assigning each beverage a grade between A and E. These ratings were displayed next to the price in the Wageningen branch as well. Colruyt, a Belgian grocery chain, has added an eco-label to 15,000 of its products, and by the end of this year, the French government intends to do the same for all food sold in France.

Sustainability Driven by Transparency

“These days, making a company more sustainable can have all sorts of meanings. For some companies, it’s all just talk, while other companies make progress,” says Boone.

While some businesses give details about the actions they’re taking, others have not yet done so. The difference between greenwashing and truly sustainable corporate strategies is difficult to make. It is challenging to compare the data because the companies that do disclose them do so in different ways.

According to Boone, the new eco-label would appear to consumers as an ‘environmental score’ on products, but that is not its primary purpose.

“The label motivates companies to become more transparent about how sustainable their food products are. Because the environmental score effectively commodifies sustainability, companies are willing to provide more insight into the sustainability of their operations,” Boone says.

In the future, consumers will be able to compare items based on sustainability, just as products currently compete based on price. For businesses, this makes it intriguing.

“This makes the market a driving force behind sustainability,” Boone stresses.

A business must start making adjustments if it wants a higher score. The new eco-label will be tied to laws and agreements in Europe.

“Part of this is ‘harmonized’ reporting: every company has to report in the same way and will be assessed in the same areas, for example,” he continued.

This guarantees the comparability that is so important for competition.

Innovation Opportunities

It all comes down to the data from those reports.

“Once there is enough data available, all kinds of parties can work with it. Not only consumers but also businesses and governments can base themselves on it,” Boone explained.

For instance, the Norwegian supermarket Oda experimented with its receipts in 2020. To increase consumer knowledge, items were categorized into various emission categories on the receipt.

“Another option is gamification. Colruyt is inviting its consumers to save green points by buying sustainable products. Employing an application, consumers can then distribute these points as contributions to projects with a positive environmental impact or earn sustainable gifts,” he mentioned.

A significant development is anticipated in 2024. The European Commission will mandate standardized reporting for businesses starting in 2019. There is a lot of interest in this.

“I’ve had several intensive meetings with CEOs of major Dutch companies to discuss what this means for them. This has a direct impact,” Boone concluded.