Ecolabelling: Creating a Roadmap for a Comprehensive System for Product Labeling of Environmental Impacts NRE701 Master’s Project Proposal Presentation 4/11/2005 Client: NSF International Advisor: Prof. Michael Moore Co-Advisor: Prof. Stuart Batterman Kevin Bolon Keita Fujihira

The client National Sanitation Foundation International (NSF)  A not-for-profit, non-governmental organization, Headquartered in Ann Arbor MI.  Certifies consumer products for safety.  Certified products bear an NSF Mark  Accredited by the American National Standard Institute to develop American National Standards. DeliverablesTimetable & BudgetIntroduction Research Questions & Methods FoodBottled WaterFaucets

Existing Labels Define ecolabels as voluntary, and assigned by a third party based on widely accepted Life Cycle Analysis Methods Type I Labels Qualitative, within categories 26 labels are members of The Global Ecolabelling Network (GEN) U.S.-GreenSeal (300 Products) Type III Labels Quantitative, across categories New Label, Still under developed 8 labels are member of Global Type III Environmental Declarations Product Network (GEDnet) None in the U.S DeliverablesTimetable & BudgetIntroduction Research Questions & Methods

Problem statement There is a demand for information Information in the U.S is inconsistent A lot of claims No standard way of presenting information Causes confusion for consumers A plan (recommendations) for a consistent system are required DeliverablesTimetable & BudgetIntroduction Research Questions & Methods ?

Objectives Answer these research questions: What type of ecolabelling system has greatest chance for success in the United States, Type I or Type III? What steps should be taken to implement that system? And, Provide the study results to the client, companies and certifiers. DeliverablesTimetable & BudgetIntroduction Research Questions & Methods

Secondary Questions i.What characteristics define products that can be successfully labeled? ii.What is the best way to measure environmental impacts? iii.What is the best way to present the information to consumers? iv.How will consumers respond to the information? v.What are the costs and benefits of the various systems? DeliverablesTimetable & BudgetIntroduction Research Questions & Methods Primary Question What type of label has the greatest potential for success (Type I or Type III) and what are the main factors for success? Research Questions

Goal: Select product categories based on their potential to be labeled successfully What are characteristics of products that can be successfully labeled? DeliverablesTimetable & BudgetIntroduction Research Questions & Methods ++ ConsumersProducers and CertifiersEnvironment Product Attribute Significant Environmental Impact Alternative products are available Opportunity to distinguish from competitor products Information is available to guide purchase decisions = Potential for successful label Secondary Research Question (i.) Alternative products are possible

EIOLCA.net software What are characteristics of products that can be successfully labeled? Secondary Research Question (i. cont.) Methods  Estimate Environmental Impacts by product category Estimate the availability of Alternatives: Compare product content labels Other methods? Rank Product Categories: Compare product content labels Other methods?

DeliverablesTimetable & BudgetIntroduction Research Questions & Methods Global Warming Potential Greenhouse Gas Emissions Land Use Water Use Acidification Potential Human Toxicity EcoToxicity Biodiversity What is the best way to measure environmental impacts? Goal: Choose a set of metrics that are widely accepted for representing the environmental impact of consumer products Secondary Research Question (ii.) Other ?

Secondary Research Question (ii. cont.) What is the best way to measure environmental impacts? Methods Review the current widely accepted methods  Give priority to methods used by established, accountable agencies/organizations (EPA, Peer-reviewed Journals, ISO)  Life Cycle Assessment Reports (LCA) Collect reports and count the frequency of use  Existing Labeling Systems Interview system administrators Review documents which describe measurement methods

DeliverablesTimetable & BudgetIntroduction Research Questions & Methods What is the best way to present the information to consumers? Goal: Select Type I and Type III label designs for retail sales testing that provide consumers with useful information about environmental impacts. Environmental Performance Secondary Research Question (iii.) Type IType III

Methods Review of existing designs Questionnaire  Pairwise comparison of label formats Measure effect of background knowledge Measure the important factors in decisions What is the best way to present the information to consumers? Secondary Research Question (iii. cont.) vs Type I Type III vs

How will consumers respond to the information? DeliverablesTimetable & BudgetIntroduction Research Questions & Methods Secondary Research Question (iv.) Goal: Determine if people will actually change their purchase decisions if they are given information about a product’s environmental impacts  Even if consumers are provided with information about environmental impacts, other factors influence their purchase decisions.

How will consumers respond to the information? Secondary Research Question (iv. cont.) Methods Retail test (Conduct in Ann Arbor area)  Conduct Life Cycle Assessment to measure the environmental impacts of several products  Create Type I and Type III labels, to be applied to products  Two 2 month test periods: Type I label applied, Type III label applied  During the second month of each test period, provide on-shelf explanation of the label’s meaning.  Record the sales data

What are the costs and benefits of the various systems? DeliverablesTimetable & BudgetIntroduction Research Questions & Methods Secondary Research Question (v.)  Potential Costs  Certification  Time  Travel  Equipment  Labeling  Potential Benefits  Premium Price  Improved Brand Image  Increased Market Share $$ Goal: Provide the client and others with cost information to help them decide whether or not to participate in ecolabelling.

What are the costs and benefits of the various systems? Secondary Research Question (v. cont.) Methods  Estimate the time and cost required to certify products  Cost of Life Cycle Assessment  Travel/Equipment Cost  Questionnaire  Contingency Value (willingness-to-pay)  Ask how much consumer is willing to pay for product with information about lower environmental impact  Offer choice labeled and unlabeled gift of different value, and record the results $$ ? $

Project Deliverables A list of product categories for which ecolabels have the greatest chance of success A list of the categories of environmental impacts that should be considered when evaluating products A sample of an effective label presentation format A prediction of the costs to a third-party certifier. A prediction of the consumer response to the recommended labels A discussion of the potential change in overall environmental impacts as a result of the use of labels DeliverablesTimetable & BudgetIntroduction Research Questions & Methods

Schedule DeliverablesTimetable & BudgetIntroduction Research Questions & Methods

Budget DeliverablesTimetable & BudgetIntroduction Research Questions & Methods