A growing number of large European retail groups are adopting new voluntary environmental labels for food products. One example used by the REWE, Lidl and Colruyt groups is the 'Eco-Score' labelling system on certain private label products (around 2500 products in Colruyt's case). There are plans to extend the use of the label to other products.
Eco-Score was developed by a private French company. The Eco-Score of a product is calculated using a life cycle analysis and purports to account for both production steps (e.g. processing, transportation and distribution) and environmental impact indicators (e.g. land, water, and energy use). Bonuses and penalties are used to account for environmental impacts not covered well by the life cycle analysis (such as the origin of ingredients and type of packaging).
The introduction of Eco-Score comes as the European Commission considers legislation under the Farm to Fork strategy for animal welfare, nutrition, sustainability and country of origin labelling. This is but one type of sustainability index being used by major retailers as it is likely consumer demand for sustainable food choices, and associated competition from retailers, will drive an increase in labelling linked to a product's environmental sustainability.
What should exporters do
Exporters to the EU should continue to monitor announcements from the European Commission regarding the Farm to Fork strategy and consumer demand for environmental labelling in the EU market. Exporters will have a chance to engage with major EU retailers on the use of retailer eco labelling through their supply contracts.
