Tips for Marketing Sustainability Credentials using Certifications

The sustainability agenda is continuing to change the way consumers buy, what they buy, and who they buy from. Are you demonstrating your commitment clearly to those that matter most?  We talk to one of our Australian experts, Regulatory Manager Dr Janine Curll, to find out more about the importance of moving sustainability higher up the agenda, and the crucial role of 3^rd Party certification schemes in demonstrating commitment and compliance.  

What does ‘sustainability’ mean to the food industry in Australia?

The Australian Commonwealth Government defines sustainability as: “development that meets the needs of the present, without compromising the ability of future generations to meet their own needs.”  

When it comes to food in Australia, The Australian Food and Grocery Council (AFGC) identifies the key sustainability issues include water availability & efficiency, waste minimising and sustainable packaging, energy & climate change (greenhouse gas emissions mitigation and adaptation) and ethical sourcing with traceability and transparency.    

How can food brands market their sustainability credentials with certification?

There are many ways food businesses and brands can evidence and promote their commitment to sustainability — with some involving much more rigorous processes and evidence than others.  

Brands can choose to become certified by fulfilling certain criteria in defined areas of an independent 3^rd Party certification scheme, which often requires them to demonstrate, record, and report sustainability data. Brands are audited to ensure compliance with the scheme standards. Being certified can help to enhance the credibility of your brand, as well as provide reassurance and peace of mind to your customers. 

Some food businesses, however, have been known to skip the actual process and use certification logos without having been accepted and officially certified by the 3^rd Party scheme. This can be a compliance catastrophe — and a surefire way to run into costly legal complications and potential enforcement action by the Australian Competition and Consumer Commission. So, if you’re going to make sustainability claims with or without certification – make sure you can back them up! 

Choose your certifications wisely

Becoming certified with schemes like Carbon Trust, Good Environmental Choice Australia, BCorp, Green Tick, Worldwide Responsible Accredited Production, Rainforest Alliance, Australian Certified Organic, Forest Stewardship Council and Fairtrade International (as well as even lesser-known – but equally as credible – organisations), can be hugely effective in reassuring customers of your sustainability credentials. 

However, not all schemes are created equal, and each will have different criteria for businesses to become certified. The level and depth at which they govern, and measure sustainability achievements can differ tremendously, and these inter-relations between factors like governance, environment, social and economic structures, can be complex. Even contradictory in some cases, with unintended consequences — not all producers will rightfully fulfil their responsibilities, or know how to, and this could undermine the effectiveness and credibility of the labels.  

There’s nothing ‘wrong’ with using lesser-known organisations for accreditation, but you may need to provide additional clarity to consumers through other marketing, in addition to your front-of-pack display.   

The schemes may mean something different to your consumers. Brands should consider what’s involved in each certification from their customer’s perspective, what’s important to your customers and their understanding of it. For instance, a 2022 study by CHOICE found that 65% of consumers are considering the carbon footprint of their purchases, with 34% more likely to buy from a carbon-neutral business. Although up to 64% of the consumers questioned do not trust the veracity of these claims.

To remain relevant to their consumers, food businesses must therefore rise to the sustainability challenge. Preparing your business now for carbon labelling, for example, should position your business positively for the future. Multi-national food businesses such as Unilever have committed to detangling the complexities of their supply chains to understand the environmental footprints and make carbon claims through certification schemes, including Carbon Trust. When a company is aware of its true carbon impact on the world, it may choose to become carbon neutral by reducing emissions further still, and/or by funding the equivalent amount of carbon savings in the world, also known as carbon offsetting (such as planting trees).

If you’re taking the first steps to become recognised for your corporate sustainability commitments and are keen to communicate these to your customers, becoming certified is a great starting point. Starting this process can feel overwhelming but talking to experts can help set you on the right path. Ashbury’s own food labelling consultants can offer some guidance on the schemes that exist and what we are most commonly seeing in the marketplace, including those that offer full-lifecycle analysis of your product and packaging, or those that can help you meet your commercial aims such as the sustainability claims you would like to make.  

Are consumers interested in sustainability credentials?

In 2022, Nature and The Lab surveyed over 2,000 Australians, looking into their interaction with sustainability and found 70% of those surveyed expect all brands to prioritise sustainability and do everything they can to be environmentally friendly. Of those surveyed, 55% found sustainability claims confusing and 72% are sceptical about veracity. For consumers under the age of 30, 47% say they will stop purchasing products from businesses without sustainable attributes (up from 39% across the surveyed group).

The research suggests that although more sustainability-minded consumers are quickly emerging, they differ as to what they expect businesses to do to be environmental, and more differences are evident between the generations. Some generations are more committed to living sustainably than others, such as consumers from Gen Z and Millennials, who are more likely to favour plant-based diets than the other generations. In 2022, EY Future Consumer Index identified 5 types of consumers where ‘Planet First’ consumers are making sustainable choices for better futures. Such consumers want to know more than the average consumer and are willing to pay more for sustainability because it defines them. For these consumers, food businesses can capitalise on providing traceability information and transparent reporting, whilst also investing in sustainable and recycling solutions to reduce packaging use. 

This research paints a picture that there is demand, and as a result, there are many different eco-labelling schemes in the works. The key to translating answers in a survey into action in a supermarket for everyday shoppers will be consistency in labelling approach and cost-effective solutions.  

Advice from Ashbury

Labelling is crucial in providing consumers with the information they need to make safe and informed choices, but it’s also an opportunity for your brand to promote what it’s all about — including your sustainability agenda.   

It’s important for businesses to choose their certification wisely and decide whether the scheme’s structure and governance offer synergy with your own sustainability goals, as well as those of your customers.  

If you have any questions about using certification logos, want to know how to get started, or the risk around using sustainability-related claims, do contact Dr Janine Curll, Regulatory Manager in Ashbury’s Australian regulatory team today.   

Useful references:

Consumer awareness growing around carbon credentials | CHOICE (2023)

Five types of consumer that you need to understand | EY – Global (2022)

Nature and The Lab reveal attitudes to unsustainable companies (mediaweek.com.au) (2022)