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Natural Selections: New Certifications & Movements

Increasingly, businesses are choosing sustainability, fair labor practices, humane animal treatment and social responsibility as their guiding principles rather than profit at any cost. To support—and verify—these efforts, new certifications are being introduced and are gaining traction with retailers and consumers.

A growing number of consumers are letting their convictions about environmental and social responsibility guide their purchasing decisions. These LOHAS (Lifestyles of Health and Sustainability) consumers, or Lohasians, choose to support companies with similar priorities and represent a $209 billion market for goods and services.

Sustainability, in particular, has become a trigger in everyday purchasing decisions, reports The Natural Marketing Institute (NMI), which tracks Lohasian patterns. “Interest in green product attributes has risen, and has declined in conventional attributes,” explains Gwynne Rogers, LOHAS business director, NMI.

As part of this swelling interest in goods and services that support sustainability, Lohasians are looking beyond some of the more prominent certification labels such as Fair Trade or organic and are seeking broader missions from companies, from the way they treat farmers to the packaging of their products.

A Bigger View

This increasing interest in value-driven business practices has opened the door to a developing group of certification labels (such as Equal Exchange, Rainforest Alliance, Utz Certified and Bird Friendly) that help create and strengthen a connection between consumers’ values and the products.

“It is important to match the certifications with your customer needs,” explains Amy Hollrah of Endangered Species Chocolate, Indianapolis, Ind., which offers products with certifications such as organic, non-GMO and Rainforest Alliance.

It’s not yet clear whether a large volume of consumers are already understanding and seeking out these new labels and initiatives specifically, but the overall trend is toward consumer interest in ethical and sustainable business practices. Joyce Fowler, store manager for A Southern Season, Chapel Hill, N.C., explains that, “Given the choice, our customers will buy local over organic from far away. In the end, they often make their decisions based on stories about small-farm production, fair wages and value added.”

It is that value added component that Fowler mentions that companies are betting on. It refers to the value that is added to a company’s product line when its business practices incorporate economic, social and environmental initiatives. Building upon the growing strength of the LOHAS movement, companies are realizing that this is essential for the future. It is what consumers will demand and, for a business, it is what is needed for the company to thrive.

While the expenses of sustainable production and certification may be high, manufacturers agree that the benefits outweigh the price. “Even with the costs associated of doing business in this  manner, it is important that companies take the step towards greater sustainability,” explains Zak Zaidman, partner at New York-based Kopali Organics, a fruit and chocolate snack company.

Certifications and Movements

No one certification can meet the needs of every company, but labels such as organic or Fair Trade are serving as a base from which companies can build efforts to meet a broader mission. Other certifications related to reducing a company’s overall impact on the environment focus on everything from a production facility’s environmental footprint down to packaging. Here are some up-and-coming certifications and movements:

American Humane Certified

The American Humane Certified label (thehumanetouch.org) is the original certified animal welfare label in the U.S. Only a decade old, the label is growing in significance for consumers and producers. In order for a product to be certified, the producer must follow up to 200 checkpoints on the care and handling of each farm animal species. “It is certainly an increasingly important certification for consumers,” says Kathi Brock, director of strategic partnerships, American Humane Certified.

This interest, according to Brock, is driven by a variety of issues including the strength of the socially conscious consumer. Brock also points to increased media attention on animal welfare issues, bringing to light many of the unsavory methods of handling animals. This is then complemented with “legislation such as Proposition 2 in California, which gives consumers the assurance that the meat and poultry they buy follows a set of standards in the way the animal is treated,” she explains.

The cheese and yogurt company Old Chatham Sheepherding Company in Old Chatham, N.Y., is in its second year of certification, explains Owner Thomas Clark. “We chose to take this action because we believe that organic certification is overused and not as meaningful as it once was,” he says. “The public is concerned about animal welfare and the certification will be noticed and have meaning in the marketplace. We do promote the certification, but as a part of an overall market approach that emphasizes the nutritional and other health benefits of sheep milk products.”

The Big Tree Climate Fund

There are new carbon emissions programs including The Big Tree Climate Fund (bigtreeclimatefund.com), founded in 2007 by Frederick Schilling, former CEO of Dagoba Chocolate. It provides carbon offsets, renewable energy certificates and tree-planting programs to companies that want to demonstrate their commitment to sustainability and lower their environmental impact.

“Carbon emissions is a growing area of concern for companies,” explains Jonathan Rademaekers, director of operations. What differentiates this organization from the others, he explains, is that The Big Tree Climate Fund “takes a more holistic approach to climate change mitigation than other carbon offset programs. We work with small communities to empower them to develop new infrastructures that allow them to be the most sustainable.”

“For me, participating in The Big Tree Climate Fund is fundamental to the philosophy I bring to my business,” explains Gail Ambrosius, a chocolatier based in Madison, Wisc. She continues, “Because chocolate is made from a plant that only grows in the tropics, transportation is a necessity. To minimize my carbon footprint, I use cacao grown and processed in Central and South America as opposed to chocolate processed in Europe, which would involve extra trips back and forth across the ocean. Being a part of The Big Tree Climate Fund offsets my carbon use by planting cacao trees in Brazil, which is a natural fit.”

Certified B Corporations

“Young or old, consumers are demanding that companies are accountable for their actions,” notes Ahmed Rahim, co-founder of Numi Organic Tea, Oakland, Calif., which has recently been named a Certified B Corporation (bcorporation.net). “And, that requires that every aspect of the business be looked at through a microscope,” he adds.

As a B Corporation, companies embed their social responsibility and sustainability values into corporate governing documents. Founding B Corporations cover a broad range of industries, and include Guayakí, a yerba mate producer; King Arthur Flour; and Culinary Collective, an import distribution company specializing in gourmet cultural specialties, along with several coffee roasters. Certified companies use the logo on packaging, in sales material, brochures and websites as a way to show consumers their dedication to transparent social and environmental performance standards.

Rahim says that being a Certified B Corporation has broadened the company’s overall awareness. “We must think beyond ourselves and beyond the company, and create a whole aura that is focused on sustainability. This certification is an assurance to our customers that we are living up to a certain standard of values, and it is my belief that we should all strive to care about every aspect of the business.”

Pierre Ferrari of Guayakí, Sebastopol, Calif., does note that, “As a Certified B Corp., there are no immediate benefits, except being part of a cool community of like-minded business people. The B Corp logo appears on our packaging as a way to promote this certification.” Further, the Guayakí website explains its B Corp status, referring anyone seeking more information to the B Corp website. “Our investors understand the B Corp business philosophy and are supportive of our efforts.”

Fair Labor Practices Certification

This new certification comes from the Scientific Certification Service (scscertified.com/fff/fair_labor_practices.php), a global leader in independent certification of environmental, sustainability, food quality and food purity claims. The Fair Labor Practices Certification shows that throughout a product’s supply chain, fair labor practices are in place. The pilot program was launched in June 2009 and Maggie’s Organics of Ypsilanti, Mich., is likely to become the first company with this certification.

Numi Tea plans to certify its Organic Puerh product line in mid-2010 as another method to strengthen its ethical business strategies. “It is a way to extend beyond Fair Trade protocols,” says Rahim, “The new certification has different procedures, standards and protocols, many of which overlap fair wages and good living and working conditions, but this will allow us to go beyond the limitations of Transfair and FLO (Fairtrade Labelling Organization) initiatives, which will ultimately add another layer.”

The program allows for a consumer logo to appear on the finished good as long as the full supply chain is certified, unlike Fair Trade that only certifies the producers, explains Terry Betts, business development manager, Fair Labor Practices.

Individual Company Initiatives

The suite of certifications appearing on products gives the consumer a sense of accountability on the part of a company, however, some companies still find the need to go beyond third-party agencies and create their own set of standards:

Guayakí: This company prides itself on being organic, fairly traded and sustainably harvested. But it didn’t stop with the tea. The producer worked closely with its supplier to create a flex plastic bag (a strong cellophane) that is completely biodegradable as well. “It has to be a matter of corporate culture,” says Ferrari. “It is important that everything, right down to the packaging, is oriented towards sustainable practices.” On its website, the company provides consumers with information about the compostability of the new packaging as well as photos of the product in a compost pile.

Kopali Organics: “We go beyond organic and Fair Trade certification, and look at ways to provide a service to a society, so that everyone can compete,” says Zaidman. “For that reason, Kopali’s hands-on efforts at origin help ensure farmers get the education necessary to enable them to become certified. We strive to meet the farmers and understand what their needs are and how best to help them meet those needs. Fair Trade is an essential story to tell, but we feel we must go beyond that.”

In order to publicize their efforts, Zaidman and his partner Stephen Brocks travelled across the country using a bus powered by vegetable oil—an ecological showroom on wheels bringing product demos and an array of sustainable living solutions to everyone they met. “It is all about educating the consumer,” says Zaidman. “And whether we do that on the packaging or face to face, we must all provide a bigger service to the world by telling the story, and in the process we make our products better.”

Madecasse Chocolate: “Third party certification is essential,” explains Brett Beach, co-founder of this Brooklyn, N.Y.-based chocolatier, “but we felt that the bigger picture in cacao is to find a way to provide more value to the farmers.” He explains that the colonial model of exporting raw materials to a developed nation hurts the local economy and limits its profits to strictly what it can grow. “This is what typically happens in cacao-growing regions,” he says. “We wanted to add value to the product and the community, by giving the community the knowledge of how to process the cacao and transform it into chocolate.”

“Since we launched our line of chocolate in November 2008, we have made every single bar in Madagascar,” explains Beach. “This keeps four times more income in the country versus traditional trade models that export Fair Trade cocoa alone.” Madecasse has helped consumers learn about its efforts through tastings and special events such as one with The Chocolate Room in Brooklyn. Beach notes that people were “very supportive and interested in making a difference in the lives of cocoa farmers half a world away.”

More than a feel-good gesture or a marketing tool, these ethical business practices are proving more essential than ever for businesses in the 21st century and in a global economy. The mainstream consumer may not fully understand the intricacies of each initiative, but as Rogers of NMI adds, “It is clear that companies that are able to deliver on sustainability-related benefits are well positioned to capitalize on the current consumer interest.” |SFM|

Laura Everage is a regular contributor to Specialty Food Magazine.