THE COMPLEXITIES OF CARBON LABELS

Consumers want information on how what they buy impacts climate change. Retailers want to give it to them. But how do you find a labeling system that applies to parsley, hiking boots and flat screen TVs? How do you compare plastic packaging and airline shipping emissions?

Steve Howard, CEO, the Climate Group: "What does it mean to say a bag of chips contains 75 grams of carbon?…I have a PhD in environmental physics, and it doesn't mean a thing to me."

It is more than an interesting debate in Britain because Britain's goal is to cut emissions 20% by 2010 and that won't happen without consumer participation. A Summer 2008 law will require non-energy-intensive businesses such as retailers, hotel chains, and banks to cap emissions. Famed retailer Marks & Spencer (“Marks & Sparks”) is aiming to be carbon neutral and put nothing into landfills by 2012.

Determining a climate change impact number could cost $10,000 per item. Example of the complexity: Unilever operates 260 factories in 70 countries and works with more than 10,000 subcontractors from Poland to South Wales.

Beware unintended consequences: Labeling an imported product from a 3rd world economy carbon-intensive will cut off business with a needy nation, potentially damaging its economy and making people there poorer. Hilary Benn, British environment minister: "We need to cut our huge carbon footprint, not force Africa to cut its tiny one…"

The British government is working with The Carbon Trust to establish standards. It will be a process of discovery. Boots, a retail pharmacy, found out something quite surprising when it was examining the emissions impact of shampoo and posted this in its 250 stores: “If you really care about your carbon footprint…use cooler water when you wash your hair.”

Walker's Crisps, a famous British potato chip, explains what goes into its carbon label. (click to enlarge)

Carbon Confusion; To help shopper make green choices, companies are slapping carbon labels on products. But even if the public can interpret the information, will it help reduce greenhouse gas emissions?
Heather Green and Kerry Capell, March 6, 2008 (BusinessWeek)

WHO
Timberland (Jeffrey Swartz, CEO); Tesco (Sir Terry Leahy, CEO); Walkers, a unit of PepsiCo; Boots; Unilever; The Carbon Trust

All that must go into a carbon label on a can of cola. (click to enlarge)

WHAT
Marketing experts are mixed on whether climate change-conscious labels actually make a difference to buyers. Climate change experts are dubious about distilling the necessary information to the simple requirements of a product label. But surveys show consumers want information about their impact on climate change.

WHEN
- AccountAbility, a nonprofit advisor on sustainable business practices, did a telling survey in Summer 2007 showing consumers want to participate.
- By 2010, Timberland will have climate change-conscious labels on all its products.
- Tesco’s Spring 2007 announcement to disclose emissions from the production, transport, and consumption of its 70,000 products was met with protest from suppliers.

A newspaper has a whole different set of considerations. (click to enlarge)

WHERE
- Timberland shoes have a 0 to 10 number on the right heel, the lower the number the less GhGs produced by the shoe.
- Tesco is based in Britain.
- The retailers mentioned are part of a Europe-wide and soon-to-be worldwide change.

WHY
- Half of 2,734 U.S. and British consumers want to know which products caused the least climate change impact.
- Timberland believes the climate change-conscious labels on 60 of its products appeal to its buyers and will keep them loyal.
- Tesco is the world’s 3rd biggest retailer. Not only did its suppliers object to labels but environmental groups objected because the labeling would not tell the whole story.
- Walkers uses the Tesco one-number approach to labeling.
- Boots, Britain's largest pharmacy chain, uses fact-bearing labels. And creating labels motivates the search for improved ways of manufacturing and packaging.

The Carbon Trust's explanation of why it's worth the effort. (click to enlarge)

QUOTES
- Jeffrey Swartz, CEO, Timberland: "[Our goal is] to arm consumers with as much information as we can."
- Edgar Blanco, research associate/label student, MIT: "It requires leadership, commitment, and pressure to make something like this happen…The truth is, no one knows how to educate consumers about this, or how it will work."
- Sir Terry Leahy, CEO, Tesco: "Customers tell us they want our help to do more in the fight against climate change…"
- Gavin Neath, senior v.p., Unilever: "Our supply chain is constantly changing."
- David North, Tesco: "We have to bring suppliers with us on this journey. It is early days."