Often one of the earlier decisions that eco-entrepreneurs make is whether or not to seek certification. Depending on your industry there are a variety of certifications. Those considered most meaningful and trustworthy (but, not always) include:
Energy Star -for appliances and electronics
USDA Organic Seal – for food and personal care items among others
Green Seal – for household cleaning products
Forest Stewardship Council – for wood and paper products
Fair Trade Mark – for a variety of products
Unfortunately there are also look-a-likes too, such as: Sustainable Forestry Initiative – developed by the timber industry. In fact many, if not most, large companies and trade groups have put together coalitions, certifications and labeling standards that appear to stamp products as, “green” when they perhaps only mean… trying to be green at best and greenwashing at worst.
“Certification becomes meaningless when there are no hard fast standards, no single governing body and no established definitions. Serious green consumers make their purchases by researching companies and shopping where they can rely on the selection,” says Beth Mandel of T&S partners , a PR agency that counts ecopreneurs as clients.
So where does that leave eco-entrepreneurs? Obtaining certification can be time consuming and is often beyond the reach, monetarily for entrepreneurs just starting out.
Gigi Perdraza, of Inca Kids explained the conundrum facing entrepreneurs just starting out.
If you want to be certified by the FTF (Fair Trade Federation) you have to be in business at least 180 days, present a financial statement (usually a tax return), strive to sell 100% fair trade products and submit at least 3 recommendations from people that know in depth the fair trade practices you are claiming. This poses a constraint for small businesses like mine against other retailers with lots of financial resources for several reasons:
- Without certification for the first 6 months or more, it is very hard to show your commitment and create trust.
-You have to have a significant budget for marketing/advertising to compete against established retailers that are already running and have all the certifications.
-It takes time to develop relationships with people (other than your suppliers) that can confirm your fair trade practices.
Other entrepreneurs find that certification standards don’t go far enough and choose to eschew certification all together. Many feel that the standards they practice far exceed those of certification.
Michael Pollan author of The Omnivore’s Dilemma said ” … in recent years organic has grown to include paradoxes such as the organic factory farm and the organic TV dinner. And now, there is even organic high-fructose corn syrup. We are not far from organic Coca-Cola.”
Where do you stand on this issue? Did you choose to apply for certification? What do you see as the positives and negatives of obtaining certification?
One crucial question to ask is whether a specific certification offers entree into a marketplace in which a company could otherwise not compete. For example, registering electronic products in the EPEAT (Electronic Product Envrionmental Assement Tool) system (www.epeat.net) is a required criterion to qualify them for US federal purchasing – a market worth tens (possiby hundreds) of billions of dollars. Numerous states, provinces, cities and even national governments outside the US are citing EPEAT in IT contracts. EPEAT consists of a multiattribute environmental performance standard developed through an EPA stakeholder process. Products registered in the system must meet 23 mandatory criteria for entry including Energy Star, RoHS compliance, provision of takeback and recycling service – to qualify at the lowest level – Bronze. Products qualify for higher ratings (Silver or Gold) by meeting 50% or 75% respectively of 28 additional optional criteria. The system is open to all manufacturers, with an annual fee based on sales volume – as low as $1500 for smaller companies. (More info at http://www.epeat.net/Manufacturers.aspx ) EPEAT currently covers desktops, laptops and monitors, and standards development starts this month for printers and imaging devices, followed by televisions, then servers and mobile devices (cell phones, PDAs). The system allows small/ecopreneurial manufacturers of environmentally friendly electronics to compete on equal footing with global giants, as long as their products are genuinely ‘greener’ measured against the criteria. See http://www.epeat.net for a wealth of details –participating manufacturers and purchasers, criteria list, media coverage, etc
Great article, MC.
Thanks for including us.
I’d just like to add that the
large marketing and ad budgets
that Gigi mentioned really can’t
buy the credibility that ecopreneurs
need.
That comes through a sound social
media strategy such as you outlined
in your “PRTips For Green Entreprenuers”,
http://ecopreneurist.com/2008/01/22/
pr-tips-for-green-entrepreneurs/.
Traditional PR campaigns are known
for positioning companies in the minds
of consumers and delivering credibility.
Coverage by TV, Magazines, Newspapers
and radio directly connects consumers
to a product and adds an implied
endorsement. This can never be achieved
through advertising.
A smart PR campaign that includes social
media will establish the trust with
consumers that translates into dollars.
Beth Mandel
T&S Partners PR Group
tspartnerspr.com
If you are an ethical company and are seeking to differentiate yourself on this basis, relevant certification is important. While it may take time and money to achieve, and there is consumer confusion due to “greenwashing”, customers do seek some type of measurement and comfort when making an ethical purchase, and certification helps to provide this. Furthermore, if you are in a market where your competitors are certified then you need to have at least the same level of accreditation simply to compete – not even to achieve a point of difference.