The demand for sustainability has increased over the past years. More and more consumers are seeking alternatives that yield less harm on the environment and on society. However, searching for sustainable goods and services still carries some challenges due to the lack of transparency and accountability from brands and companies. Greenwashing also adds to consumer doubt and speculation on whether the goods and services are true to their claims. While sustainability reports may showcase company performance, there still lies the potential of non-disclosure and lack of external audit and validation.
Building a sustainable brand requires trust. Beyond compliance and reporting, there is still more that can be done.
Green certificates are ways to recognize the sustainable or environmentally-friendly practices, policies, goods, or services of an organization. These are usually issued by third-party accreditors that can be focused on overall sustainability and environmental impact or on issues that are highly relevant to specific sectors and industries.
There is a wide range of certificates available in the market. Consumer goods and retail have specific certificates that inform consumers that their products are cruelty-free, or made with circular business models in mind. Other certificates also acknowledge the use of energy efficient or green technologies and infrastructure. Other certificates also evaluate sustainability across the entire organization, taking into account ESG factors such as waste management, carbon emissions, employee welfare, customer satisfaction, sustainability policies, and risk management.
Certificates are usually posted in company websites, online platforms, physical stores, on the product itself, and in the databases of the certificate provider, informing audiences worldwide about sustainability commitments, environmental performance, and the impact they have towards sustainable development.
Organizations acquire green certificates for a myriad of reasons. More consumers these days seek sustainable products yet find a hard time believing sustainability claims made by companies. Through green credentials, companies can better build consumer trust.
Green certificates can also help attract a wider audience. Green certificates can support marketing and sales efforts by enhancing the image of an organization and their goods or services through highlighting their sustainability efforts. This helps them stand out amongst competitors and garners more attention and attraction from consumers. For example, consumers seeking sustainable lifestyles may prefer purchasing from organizations that are cruelty-free or committed to reducing emissions or sustainable working practices and conditions. This can also strengthen consumer retention and brand loyalty as the desire and demand for a sustainable lifestyle continues to grow.
Asides from marketing and sales efforts done by the organization themselves, the organization and their brands may continue to grow through word of mouth and increased awareness from third-parties. Organizations that provide certificates have databases containing all the organizations they have rated or certified and details on their scores and impact. Additionally, there has been an emergence of apps and websites that list brands and their sustainability risks and impacts in order to help consumers make informed decisions on which brands to support or be more cautious about. By having these green certificates, an organization can future-proof their business.
Beyond marketing strategies, brand reputation, and consumer trust, a green certificate also benefits businesses by further cementing sustainability in their business practices. Going through the process of applying for a green certificate or rating allows companies to assess and reflect on their current practices and determine new ways on how to improve and enhance their sustainability. By being scored and rated by third-party auditors and accreditors, businesses can be motivated and challenged to improve their ratings over time, bringing them closer to their sustainability targets and embedding sustainability across the organization.
The application for a green certificate varies depending on the provider. Generally, it begins with an organization submitting an application form along with necessary documents for proof and validation. Afterwards, the organization’s application is reviewed by the certificate provider. This can entail a series of back and forth communication between the applicant and the reviewer if there is a need to clarify details or provide additional information.
Once the application is reviewed and approved by the assessor, the organization would pay certain fees or make additional commitments to ensure that they walk the talk. Certain certificates and ratings also require recertification after a few years in order to maintain and uphold sustainability standards.
While green certificates can improve reputation and attract consumers and investors interested in sustainability, businesses can also experience challenges when securing ratings or certifications. One, the growing popularity or interest towards sustainable certificates and verification among brands and service providers can lengthen processing times and increased backlogs on the certifiers end, making the acquisition longer. Aside from this, businesses may also struggle during recertification periods as they would have to go through the process again, leading to gathering and reporting data and verifying these again with the certifier.
Given these challenges, it is important that businesses heavily prepare prior to submitting their application. Having a sustainability data management system and consistently tracking and reporting sustainability performance will ease the application process. In addition, continuously improving performance can help increase ratings and scores, which can improve brand reputation and attract more consumers and investors. While the application process may be time consuming, the results are rewarding.
BCorp certifications cover the entire spectrum of ESG performance. These are given to companies that meet high standards of verified performance, accountability, and transparency. Companies are evaluated on factors ranging from employee benefits and charitable giving to supply chain and waste management practices and input materials.
EcoVadis evaluates companies based on a range of international sustainability standards, using a scorecard that explains performance across 21 indicators. EcoVadis provides business sustainability ratings, focusing on assessing the quality of a company’s sustainability management system through various criteria including environment, labor and human rights, ethics, and sustainable procurement.
MSCI Inc., a global provider of investment decision support tools, also provides ESG Ratings. This evaluates the environmental, social, and governance risks and opportunities of companies and fixed income investments. These ratings are designed to help investors understand ESG-related risks and how well a company manages those risks compared to its peers.
The Leadership in Energy and Environmental Design (LEED) certification is focused mainly on the construction and architecture industry. This green building rating system signifies that a building has implemented energy efficient strategies and infrastructure. It also notes the sustainability of the building, from its efficient use and management of water and resources to how it enhances the quality of life of its occupants and community.
The Leaping Bunny Certification under the Coalition for Consumer Information on Cosmetics is issued to companies who uphold the standard for cruelty free cosmetics, and personal and household products. The internationally recognized certification assures consumers that no new animal testing was used in any phase of product development by the company, its laboratories, or suppliers.
Building a sustainable brand requires trust, transparency, and accountability. Through green certificates, an organization can strengthen their reputation and deepen their commitment to sustainability. While the process may seem daunting, a strong data management system and formidable and actionable targets and strategies can further ease an organization’s journey towards being a trusted and certified sustainable business.
At Keslio, we support businesses throughout their sustainability journey. Our team can support you in securing sustainability ratings and certifications, from helping you manage and gather data to advising you on how to strengthen and improve your application. Learn more about our services here or reach out to us through hello@keslio.com.
