Regulatory Structure Underlying Sustainability Labels

Abstract

Accurate regulation of sustainability labels may increase their capacity to promote sustainable consumption. To determine if, when and where public or private institutions should intervene, an overview of the current regulatory structure underlying sustainability labels is needed. To provide such an overview the regulatory structure of 65 sustainability labels on food products in the Dutch market was examined. This study shows a plurality of sustainability labels with different types of certification schemes, i.e. first-, second- or third-party certification, and with multiple actors involved. The majority of these sustainability labels resemble a structure where NGOs are highly involved in standard-setting and certification is mainly conducted through private, third-party certification. While these structural characteristics may be considered reliable and credible by consumers, several sustainability labels do not reflect this structure. The present coexistence of sustainability labels with different underlying regulatory structures may negatively affect sustainable consumption.