1. Eivind Stø Sustainable standards in textile labels, an overview Eivind Stø, SIFO Presented at the joint CUTS –SIFO kick-off meeting A Study of Environmental Standards and their Trade Impact on Indian Textiles & Clothing Sector Oslo, May 20, 2011

2. Eivind Stø Sustainable standards in textile labels, an overview The aim of this presentation is to give an overview of existing sustainable labels for textile and clothes in Europe, developed within a joint CUTS/SIFO cooperation This overview is not complete. It is often said that there is a jungle of labels out there, and this definitely true also for textiles and clothes. It is difficult to navigate in this jungle, both for business actors and consumer. Based upon this review we will contribute to fill information gaps along the value chain from primary fibre production and design of clothes to distribution and consumption.

3. Eivind Stø The dualism of labels We have during the last decade witnessed a substantial growth in labels placed on consumer products, also for textile and cloths What we understand as the dualism is that on one hand standards and labels might contribute to reduce the environmental impact in textile-production and that labels play a role as information and differentiation tools in the consumer market in the OECD countries. On the other hand it is pointed out that these standards and labels do function as trade barriers for products and producers outside the OECD area.

4. Eivind Stø Textile labels in Europe Sustainable labels has not – so far - played an important part as communication tool in the European textile market. The frontrunners has been paper products, household chemicals, paints, household appliances and organic agricultural products For some of these products, and in some countries, the markets shares has been substantial. Thus, the potentials for sustainable textiles labels may be large, because the symbolic aspects of clothes. On the other hand, clothes are complex products, and the sustainability dimension has to compete with alternative product qualities.

5. Eivind Stø The classification of labels according ISO Mandatory labels like the EU energy label, relevant for household appliances and chemical products ISO-type I eco labels, classical second- party labels like the EU- flower, the German Blue Angel and the Nordic White Swan. ISO-type II eco labels, self-classification by industry or retailers ISO-type III eco labels, quantitative environmental product declarations (EPD) Other relevant labels, including social labels and fair trade labels Other not relevant labels, including recycling symbols like the green dot

6. Eivind Stø Dimension on the textile labelling Organic labels Eco-labels Fair trade labels Health related labels

7. Eivind Stø Organic labels

8. Eivind Stø Eco-labels

9. Eivind Stø Fair trade labels

10. Eivind Stø Health related labels

11. Eivind Stø Specific cotton initiatives

12. Eivind Stø A jungle of labels It is possible to identify a large number of relevant environmental standards for textile and clothes in the European market. These standards are materialized into a large number of sustainable labeling schemes. To some degree these label support each other, they are covering different dimensions in the concept of sustainability. However, there is also a competition between them. This competition is relevant along various dimensions. It concerns trust, policy influence and economic matters. To a large degree the labeling institutions are financed by the certification of specific products

13. Eivind Stø Integration of criteria? To some degree we have witnessed a tendency to integration of these criteria. This means that the criteria are developed in a combination of two or more of these dimensions above. However, this tendency is not very strong. We have even seen tendency to strengthen the one-dimensional approach within some labelling schemes. Multi-dimensional approaches may be regarded as a strong trade barrier for producers in many countries. However, in the long run it is difficult to think that consumers have to choose between organic and environmental and fair trade textiles. This means that we in the future will see a harmonization of the standards, but it have to take time

14. Eivind Stø EU harmonisation? Harmonisation of standards is a complicated process, even on the European level. We have just witnessed two initiatives within the textile areas that have failed A new standard for flammability of children’s nightwear came into force in 2007 (EN 14878 2007). This was a result of almost ten years work; and the background was substantial differences among European countries on this matter. However, this new directive was a compromise and it still allowed to keep their old standards. EU has also taken a similar initiative to harmonise the standards for clothes size labelling. It was not possible to reach to any agreement on the actual size and the labelling of them Another illustration is the lack of market success of the EU- flower, the European Eco label

15. Eivind Stø The future of textile labels As we have described above the GOTS scheme may have potential to integrate various organic labels, but this initiative are not very old and it is early to conclude that these potentials will be met in the future. Another new initiative is taken by the large companies in the global textile market such as a H&M, C&A, WallMart and Levi Strauss. Together this coalition covers around 60% of the global apparel sales. However, it will obvious take some time before this initiatives is materialised into a new label.

16. Eivind Stø The future of textile labels The other main conclusion is that these textile labels, so far, has had limited influence on the market decision both for businesses and consumers. The labels are found on relatively few consumer products and are probably not well-known by European consumers. However, there are reasons to believe that this may change. There are two reasons for this change. First of all the environmental impact of textile production and distribution have just recently been put on the political agenda. The other argument deals with the positive experiences we have seen from existing labelling schemes and alternative product groups

17. Eivind Stø The governance of sustainable labels Is it possible to identify similarities and differences between governmental-sponsored and private eco-labels? This is a question that has to be analysed in the current project. One hypothesis could be that NGO based labels may have stricter environmental criteria than the labels run and financed by governments. Another hypothesis could be that the labels run by businesses or business associations have criteria that are weaker along crucial dimensions.