Ecolabeling: voting with our wallets

ONE INSTRUMENT that can help in the environmental restructuring of the economy is ecolabeling, asserts Lester R. Brown, president of Earth Policy Institute, Washington, D.C. Labeling products that are produced with environmentally sound practices lets consumers vote with their wallets. Ecolabeling now is employed to enable consumers to identify energy-efficient household appliances, products from sustainably managed fisheries and forests, and "green" electricity from renewable sources.

[ILLUSTRATION OMITTED]

Among these ecolabels are those awarded by the Marine Stewardship Council (MSC) for seafood. In March 2000, MSC launched its fisheries certification program when it approved the Western Australia Rock Lobster Fishery. Also earning approval at that time was the West Thames Herring Fishery. In September 2000, the Alaska Salmon Fishery became the first in the U.S. to be certified---for five different types of salmon, no less. By October 2007, there were 23 certified fisheries worldwide supplying some 2,500,000 tons of seafood.

The MSC's counterpart for forest products is the Forest Stewardship Council (FSC), founded in 1993 by the World Wide Fund for Nature (VWVF) and other groups. It provides information on management practices. Some of the world's forests are managed to sustain a steady harvest in perpetuity; others are clearcut, decimated overnight in the quest for quick profits. FSC issues labels only for products from the former, whether it be lumber sold at a hardware store, furniture in a furniture store, or paper in a stationery store. Headquartered in Oaxaca, Mexico, FSC accredits national organizations that verify that forests are being managed sustainably. In addition to this on-the-ground monitoring, the accredited organizations must be able to trace the raw product through the various stages of processing to the consumer. The FSC sets the standards and provides the FSC label, the stamp of approval, although the actual work is done by national organizations, explains Brown.

The FSC has established nine principles that must be satisfied if forests are to qualify for its label. The central requirement is that the forest be managed in a way that ensures that its yield can be sustained indefinitely. This means careful selective cutting, in effect mimicking nature's management of woodlands by removing the more mature, older trees over time. The FSC label provides consumers with the information they need to support responsible forestry through their purchases of forest products. By identifying timber companies and retailers that are participating in the certification program, socially minded investors also have the information they need for responsible investing. In March 1996, the first certified wood products were introduced into the United Kingdom. Since then, the certification process has grown worldwide, notes Brown. As of October 2007, some 91,000,000 hectares of forests in 77 countries had been certified under the auspices of the FSC.

To support this certification program, WWF has set up the Global Forest and Trade Network, linking nongovernmental organizations, companies, entrepreneurs, and communities in more than 30 countries, including Austria, Brazil, France, Germany, Russia, Spain, Sweden, Switzerland, the United Kingdom, and the U.S, relates Brown. This network is part of the vast support group of companies that adhere to the FSC standards in its marketing. Three of the world's largest wood buyers--Home Depot, Lowe's, and Ikea--referentially purchase FSC-certified wood.

In June 2001, the Natural Resources Ministry in Moscow announced that it was introducing national mandatory certification of wood. Although a small portion of its timber harvest already was certified, buyers' discrimination against the rest of the harvest cost Russia $1,000,000,000 in export revenues, Brown points out. The Ministry estimates that its uncertified wood sells for 20-30% less than certified wood from competing countries.

Electricity is another commodity that is getting an environmental label. In the U.S., many state utility commissions are requiring utilities to offer consumers a green power option. This is defined as power from renewable sources other than hydroelectric, and includes wind, solar cells, geothermal energy, and biomass. Utilities simply enclose a return card with the monthly bill, giving consumers the option of checking a box if they would prefer to get green power. The offer specifies that there is an additional cost, typically from three to 15%. Utility officials often are surprised by how many consumers sign up. People apparently are prepared to pay more for their electricity in order to help stabilize the climate for future generations. Local governments, including, for example, those in California's Santa Monica, Oakland, and Santa Barbara have agreed to use green power exclusively. This includes the power they use for municipal buildings as well as that required to operate various municipal services, such as street lights and traffic signals. Other city and state governments committed to purchasing a portion of their electricity from green sources include Chicago, Portland, New York, and New Jersey. Many corporations are on board as well. Pepsi, Whole Foods Market, and Staples all rank among the top 25 U.S. green power purchasers, according to the Environmental Protection Agency's Green Power Partnership. Literally scores of companies in California and Texas are subscribing.