Certification Compass

Consumers, companies, and farmers attempt to make sense of their certification options.

Part 2: Companies chart a path

** This is the second article in a 3 part series **

Let's Review

In our last post, we discussed the growing consumer appetite for sustainable products and brands. The majority of consumers feel that certifications - including USDA Organic, Non GMO, and Fair Trade - are important when choosing which product to buy. And yet, consumers are not especially loyal to one certification over another. In fact, consumers are not always able to tell them apart.

Given this combination of consumer interest and indecision,

how do companies decide which certifications to pursue?

Companies + Certifications

Pursuing a certification (or group of certifications) can be a complicated affair. It may mean that a company has to find new supply partners. For the truly committed, it likely means making a significant investment in existing supply partners to help them make the transition from conventional practices to the certification scheme. This is a long term commitment, not a spur-of-the moment decision.

Sadly, there's no guarantee it will get easier over time. Companies who have committed to a certain certification - like Fair Trade, for example - often find that supplies of certified material are limited. This, of course, lends itself to a variety of challenges not the least of which are managing risk and growth.

For these reasons, companies should carefully consider their certification options as part of a larger sustainability commitment. Many sustainability-conscious organizations decide not to pursue certifications at all. But, for those who do, the rationale must be clear. And it should not rest on consumer interest alone.

Companies should approach this process like an avid hiker might approach a multi-day backpacking trip:

There are many possible paths to take towards sustainability, each with their own benefits and challenges.

Certifications, like a compass, can help you find your way.

But, first, you have to know where you want to go.

Since the journey towards sustainability (broadly) and certification (specifically) will be a long one, it helps to identify specific goals ahead of time, establishing guiding principles to turn to at each fork in the road when decisions must be made. And, like many long journeys, it's important to remember that they are more often made of many small steps rather than giant leaps and bounds.

An Experimental Walk Down the Certification Path

Many companies choose to start their journey with one certified ingredient or one certified product and branch out from there. Yes, even the longest journey begins with a single step. Or perhaps an experimental walk.

Let's say there's a cookie company is considering a new product. Something fun like "Coconut Chocolate Chip Delight."

If this company is ready to take a small step towards certification, perhaps starting with just one ingredient, they could decide to include only Fair Trade-certified coconut.

Or, if they're feeling a little more brave, they might decide that the majority of ingredients in this Coconut Chocolate Chip Delight will be Fair Trade certified - sugar, flour, chocolate, and coconut.

Small steps like this can allow companies to test consumer interest. They also allow companies to test their internal processes - sourcing, packaging, marketing etc. - before going "all in" on a specific certification.

Certification as an Identity

On the other end of the certification spectrum, for some companies, a specific certification (or group of certifications) can serve as an identity.

"We make our products with certified USDA Organic ingredients."

"We are proud to be a Fair Trade partner."

"We are committed to 100% Non-GMO Project verified products"

Sometimes, certification becomes an identity after many years of walking down a particular certification pathway. Sometimes, certification is a part of the company's identity from the beginning.

Either way, consumers should remain cautious.

Certifications do not automatically equate to "sustainability" or "social equity."

A company can make all their products with organic ingredients AND still use unsustainable packaging material.

A company can be a proud Fair Trade partner AND still have production processes that create unnecessary waste.

A company can be committed to Non-GMO ingredients AND exclusively use non-renewable energy to power their business operations.

And a company can source USDA Organic, Fair Trade, and Non-GMO ingredients AND still not pay all of their employees a living wage.

The truth is, the journey towards becoming a sustainable, ethical business is far more complex than can be captured through any certification program, no matter how much a company might identify.

Uncertified but Guided by Certification Principles

Finally, some companies adopt certification principles but decide to forgo the official certification process.

Sometimes, this decision is driven by cost. First, companies pay a premium for certified material. Second, all certifications charge a "label fee" which companies must pay before slapping their logo (seal of approval) on a particular product. Finally, there are the annual certification audits which companies (or farmers) cover in order to continue using the certification. For some companies, these costs are worth more than the potential benefit of being able to sell a product as officially "certified."

Sometimes, this decision is driven by principle. The majority of certification schemes are created and verified by third parties, each with their own specific area of interest and influence, and often without much regulation. Although the intentions behind these are generally good, sometimes they can be seen as self-serving. And, for a company that may already have several certifications under their belt, the pressure to add yet another can feel like overkill.

It's worth noting:

A company does not have to be officially certified in order

to adopt practices from a specific certification program.

As an example of this, consider "regenerative agriculture."

Regenerative Agriculture: A Case Study in Certification

Regenerative Agriculture is "a system of farming principles and practices that seeks to rehabilitate and enhance the entire ecosystem of the farm by placing a heavy premium on soil health with attention also paid to water management, fertilizer use, and more." In other words, regenerative farms improve the resources they use rather than destroying or depleting them.

This sounds like a noble cause.

The Regenerative Organic Certification (ROC) builds upon the USDA Organic certification with additional requirements focusing on 3 pillars: soil health, animal welfare, and social fairness. ROC farms must follow regenerative agricultural practices including the use of cover crops, crop rotation, and conservation (low) tillage practices. ROC aims to be the "highest standard for agriculture around the world" and has several high-profile fans including Dr. Bronner's and Patagonia.

However, being the "highest standard for agriculture" sets a pretty high bar and not everyone has the resources (or interest) to invest in following the latest-and-greatest food certification.

But who says a company has to be officially certified to follow regenerative practices?

In April, 2021, food and beverage giant PepsiCo announced they were going to scale regenerative farming practices across 7 million acres by 2030. Of note, Pepsi "advocates for the establishment of industry-wide regenerative agricultural standards ... [but] in the absence of such standards" will measure its own practices.

In September 2021, Nestle announced their commitment to "support and accelerate the transition to a regenerative food system." Many of the pillars of their regenerative plan align with the ROC certification, and yet they appear to be pursuing regenerative agriculture separate from their certification.

To Certify or Not To Certify? - That is the Question.

Consumers have a growing interest in shopping for sustainable products, broadly speaking. Certifications are one way to demonstrate a commitment to sustainability, although achieving and maintaining certification can be a costly, time consuming process. And, as we discovered, consumers are not especially loyal to one certification scheme over another.

With this in mind, companies should carefully consider whether or not certifications make sense as part of their broader sustainability journey.

Certifications can be a compass, guiding the way towards greener pastures, but they are certainly not a short cut or the only way to become more sustainable. There are many ways to chart a course, and to show consumers you are actively working (or walking) towards a more sustainable future.

Whichever road you choose, the "why" for your company's journey must be abundantly clear. State your vision, your goals, and your reasons for trying. Repeat them often, to everyone; employees, supplier partners, and consumers. Make sustainability a crucial piece of the company narrative.

The road to sustainability will undoubtedly have challenges. When the going gets tough, returning to the "why" will give you the motivation to continue putting one foot in front of the other.

.... Regardless of the certification you choose.