FLO & Fairtrade Labelling
The Fairtrade Labelling Organizations International (FLO) is the global umbrella body for Fairtrade certification and labelling around the world. There are 20 different consumer initiatives in 21 countries that participate in the FLO system including the Fairtrade Foundation in the UK, Transfair USA, Max Havelaar in the Netherlands and Fairtrade Labelling Australia & New Zealand.
See here for info on Fairtrade Labelling Australia & New Zealand.
FLO is responsible for setting international Fairtrade standards that producers in developing countries and international traders are required to meet in order for products to be labelled as FAIRTRADE. FLO-CERT, a separate certification body established in 2003, is responsible for verifying compliance with these standards.
History of Fairtrade Labelling
The first Fairtrade labelling initiative was established in 1988 in the Netherlands with the Max Havelaar label, based on a fictional character who opposed the exploitation of coffee producers in former Dutch colonies. The idea of placing a label on a product identifying it as fairly traded enabled such products to be bought and sold outside of traditional fair trade networks, making it more accessible to mainstream consumers. By 1997, there were 17 national consumer initiatives in Europe, North America and Japan. In that year, they came together to form the umbrella body, the Fairtrade Labelling Organizations International (FLO) with the goal of harmonizing their various standards and certification procedures to strengthen that fair-trade labelling movement worldwide.
Today there are 20 labelling initiatives in 21 countries under the umbrella of the Fairtrade Labelling Organizations International (FLO).
FLO Structure
The FLO Board is the highest decision-making structure of FLO. It includes representatives from certified producer organisations, traders and national consumer labelling initiatives.
For more information on FLO structures, visit the FLO website http://www.fairtrade.net/sites/aboutflo/structure.htm
Fairtrade Labelling Australia & New Zealand
FLANZ Annual Report to the inaugural Annual General Meeting, December 2006
Public Version for Stakeholders
Monday 4 December 2006
This is a report on behalf of the chair and the board on the first 18 months of activity presented to the members of the company; Oxfam NZ, Oxfam Aus, CWS NZ, & FoE Aus, at this the first Annual General Meeting of Fairtrade Labelling Australia and New Zealand.
Fairtrade Labelling Australia & New Zealand was incorporated in Australia on 19th July 2005 as a company limited by guarantee with four organisations as members. A board of directors was appointed and FLANZ was registered in New Zealand as an overseas company operating in New Zealand.
In August 2005 FLANZ became a full member of Fairtrade Labelling Organisations, the international organisation that governs the use of the Fairtrade Label worldwide. As a full member of FLO, FLANZ has the sole right to license the use of the International FAIRTRADE Label in Australia and New Zealand.
FLANZ sets policy, within the international guidelines, and administers the Fairtrade Labelling scheme in Australia and New Zealand. To carry out these activities 3 staff were appointed:
Audrey Jacometti, the Labelling Officer, is responsible for the administration of the Labelling scheme. This includes processing licensee applications, approving product packaging and promotional use of the label, raising invoices for license fees and maintaining all the necessary records and information. Audrey is also the company secretary.
Cameron Neil, Trade Certification Analyst, is responsible for the trade audit function of the labelling system. Cameron cross checks flow of goods reports and supply chain information, in order for FLANZ to maintain a system that provides a robust guarantee that products that carry the FAIRTRADE label come from a Fairtrade Certified source and comply to international Fairtrade standards. Cameron is also responsible for developing Labelling policy and making certification recommendations.
Steve Knapp was appointed as the Executive Director of Fairtrade Labelling Australia & New Zealand and is also the Executive Director of the Fair Trade Association of Australia and New Zealand. Steve is responsible for the effective management of both organisations. Within FLANZ, Cameron and Audrey both report to Steve, and as the Executive Director, he reports to the board.
The Board of directors has met 5 times in the first 18 months of operations, 3 times physically and twice by teleconference. The Board’s main responsibilities are to receive reports on activities, manage risk, determine forward strategy and make final certification and policy decisions.
The board are in turn accountable to the members. The members are, in effect, the owners and guardians of the company and the integrity of the FAIRTRADE Label in Australia and New Zealand.
In order to be guardians of the company and integrity of the FAIRTRADE Label and system, members need communication and information from the Board. As a new organisation we do not have all these systems currently in place. This is also an ongoing process and will develop as we develop as an organisation. The AGM is an important opportunity for members to receive information and provide feedback to the Board.
At the AGM, members are responsible for electing new board members, receiving annual reports and the audited financial statements, and appointing company auditors for the coming year. Any changes to the constitution also require approval by the members. At this meeting there is a proposed change to the constitution that to take effect requires members approval.
FLANZ has made tremendous progress in it’s first 18 months. We are operating in a dynamic and fast growing market. When FLANZ was incorporated the FAIRTRADE Label was already being used by 24 companies in Australia and 15 in New Zealand. These companies were licensed to use the Label through the Fairtrade Foundation in the UK. One of the first priorities for FLANZ was to develop our own license agreement and transfer all these companies over. 18 months later we now have almost 100 licensees, about 70 in Australia and 30 in New Zealand.
The range of Fairtrade Labelled products is also growing. Coffee is still the main product, but sales of tea and chocolate are growing fast. New Labelled products, although, still with limited availability, are sugar, sportsballs, rice, quinoa and cotton.
The estimated retail sales of Fairtrade Labelled products in ANZ in 2004 were AU$1.5m in value and 50MT in volume. By end of 2005 this had increased to AU$6m and 160MT. By the end of 2006 we are expecting well over AU$10m in sales value and more than 300MT of product.
Wholesale sales of Fairtrade Labelled products provide FLANZ with a 2% license fee paid by businesses that are licensed to use the Label to identify their products as Fairtrade. Our business plan forecast for wholesale sales in the 2005/06 financial year was AU$5m that was projected to generate a license fee income of AU$100k. So far reported wholesale sales are AU$6.85m for the period.
However there is a time lag between FLANZ receiving license fees and when the recorded sale was made and this is reflected in the cash position in the financial reports. Although we expect to receive a license fees of AU$130k for sales reported made in the 2005/06 FY, only AU$82k license fee income was received in the period. We currently estimate 6 months from the date of the reported sale to actually receiving license fee income.
This and a backlog of reporting, and consequently invoicing, put some pressure on the company’s cash flow position over the course of the year. This was solved with an agreed loan from the Fair Trade Association of Australia and New Zealand. This shows as a AU$42k liability in the financial reports. These issues have now been resolved; there is no longer a backlog of reporting or invoicing, outstanding receivables are being collected and the loan to FTAANZ has now been repaid.
At June 2006 FLANZ has a net asset position of AU$21k, this retained profit is license fee income that is surplus to the direct running costs of FLANZ. Although FLANZ contracts Cameron directly to provide trade audit services, both the Labelling Officer and the Executive Director are currently employed by FTAANZ. Consequently FTAANZ and FLANZ have drawn up a services agreement by which FLANZ contracts FTAANZ to supply a schedule of services, in order to begin to cover the costs of the administration of the Labelling system, that are currently borne by FTAANZ, and supported by NZAID and Oxfam Australia seed funding.
The intention is for surplus license fee income, beyond FLANZ running costs and development needs, to be used to contract services from FTAANZ to further the objectives of FLANZ. Initially these are the costs of administering the Labelling system, but as income increases will potentially be extended to include business development services, promotion and education activities, building the fair trade movement and producer support.
Because of the close relationship between FTAANZ and FLANZ this contract for services is regarded as a related party transaction and is currently not permitted under the FLANZ constitution. Hence there is a proposed constitutional change and this and the related party transaction that to take effect requires your approval as members. These proposals are also tabled at this meeting.
FLANZ has also taken its role within the international Fairtrade labelling system seriously, and although it is a long distance to travel, has attended all 3 FLO MoMs at the FLO offices in Germany, since we became a full voting member and we have engaged and contributed to current international debate on FLO governance and the direction of Fairtrade labelling.
The FLANZ Certification Analyst has also attended this year an international Trade Audit meeting in Vienna, and we learnt that many of the Trade Audit issues that we are working on solutions for after 18 months of operations, are the same issues that the more established Labelling Initiatives are also grappling with.
As a result of this meeting, and previous board discussions, we are currently developing a proposal for a new Trade Audit system that audits traceability and licensees’ systems, primarily through external audit and inspections, that will replace the unpopular and onerous Flow of Goods reporting that attempts to track all flow of goods through the system. We hope to implement this system in the coming year.
Next year will continue to be exciting and challenging for Fairtrade Labelling. We expect the market to continue to grow and we will concentrate on consolidating and maintaining our internal systems to manage this growth. We aim to provide more business development services to licensees and continue to support the growth of the fair trade movement in order to provide increased benefits to the marginalised and disadvantaged producers of the products we consume everyday.
Steve Knapp, Director & Diana Gibson, Chair
See here for an accompanying presentation that provides an overview of the fair trade movement in Australia and around the world that locates Fairtrade Labelling ANZ and what it does.
The Fairtrade Certification System
The Fairtrade Label is a “seal of approval” that appears on products that meet internationally agreed Fairtrade standards and which guarantees to consumers that their purchases will benefit the producers, their families and the surrounding communities from the developing countries that they originate from.
The Fairtrade Certification and Labelling system is administered in Australia & New Zealand by Fairtrade Labelling Australia & New Zealand, a local not-for-profit organisation that is a full member of FLO e.V. internationally. Read more about Fairtrade Labelling ANZ here.
The Fairtrade guarantee to consumers is backed by a certification and trade audit system that applies to all companies in the supply chain up to the point of final packaging. This includes Fairtrade certified producers (who comply with Fairtrade standards), Fairtrade registered importers (who pay a Fairtrade premium, in addition to minimum prices, that supports social, economic and environmental development) and Fairtrade licensees (who a licensed to apply the Fairtrade label to packaged products and sell them in to the market).
Look for the Fairtrade label on products such as coffee, tea and chocolate (with more to come!) to ensure that the benefits really do go back to producers.
Fairtrade Markets
For details on the state of the Australian & New Zealand market, go here.
Fairtrade markets - global figures - as of March 2005
(source: www.fairtrade.net/sites/impact/facts.html)
There are 531 producer organzations certified by FLO, representing over one million of farmers and workers, coming from over 50 countries in Africa, Asia and Latin America. Including their dependents, five million people are affected.
667 registered traders, consisting of exporters, importers, processors and manufacturers, coming from 50 countries all over the world.
Between 2003 and 2004, Fairtrade labelled sales across the world grew by 56% to over 125,000 Metric Tones (MT), representing a fantastic growth.
Sales of certified Fairtrade products mean extra benefits for FLO certified producer organisations. The extra benefits for coffee farmers, for instance, during 2003, taking the World market price as defined for Arabica by the NY - and for Robusta by the London stock exchange compared with the Fairtrade minimum price and premium, amounts to over 22 million US$.
| General sales in Metric Tones (MT) by Fairtrade Labelling |
| 1997 | 25,972 | |
| 1998 | 28,913 | +11.3 % |
| 1999 | 33,495 | +15.8 % |
| 2000 | 39,750 | +18.7 % |
| 2001 | 48,506 | +22.0 % |
| 2002 | 58,813 | +21.2 % |
| 2003 | 80,633 | +42.0% |
| 2004 | 125,596 | +56.0% |
FLO Fairtrade Standards exist for coffee, tea, cocoa, sugar, honey, bananas, fresh fruit, dried fruit, fruit juices, rice, wine, nuts and seeds, fresh vegetables and sports balls. In development are standards for more tropical fruit and cotton & textiles.
See more on standards here.
Fairtrade Standards
There are 2 main types of FAIRTRADE standards for developing country producers – for smallholder producer organisations and for hired labour situations. Fairtrade standards for smallholder producer organisations include requirements for democratic decision making, ensuring that producers have a say in how the Fairtrade premiums are invested. They also include requirements for capacity building and economic strengthening of the organisation. Fairtrade standards for hired labour situations ensure that workers receive decent wages and enjoy the freedom of join unions and bargain collectively. Fairtrade certified plantations must also ensure that there is no forced or child labour and that health and safety requirements are met. In a hired labour situation, Fairtrade standards require a “joint body” to be set up with representatives from both management and workers. This joint body decides on how Fairtrade premiums will be spent to benefit plantation workers.
For some products, such as coffee, only Fairtrade standards for smallholder organisations are applicable. For others, such as tea, both smallholder producers and plantations can be certified.
Depending on the product, there may also be specific environmental requirements to be met. As of July 2006, generic environmental standards will be applicable across all product categories.
Given the development focus of Fairtrade, FLO standards contain minimum requirements that all producer organisations must meet to become certified as well as progress requirements in which producers must demonstrate improvements over time.
Fairtrade standards now exist for a wide range of products from coffee, cocoa, tea, nuts and spices to fresh and dried fruits, wine, nuts and spices and sports balls.
For more information and to download Fairtrade standards, visit the FLO website http://www.fairtrade.net/sites/standards/general.html
Fairtrade Benefits
Coming soon here will be more information on Fairtrade benefits to producers, including links to producer profiles and other information in the Producers & Impact section
Fairtrade benefits - global figures - as of March 2004
Sales of certified Fairtrade products mean extra benefits for FLO certified producer organisations. The extra benefits for coffee farmers, for instance, during 2002, taking the World market price as defined for Arabica by the NY and for Robusta by the London stock exchange, compared with the Fairtrade minimum price and premium, amounts to over 30 million US$.
Fairtrade In ANZ
Update 1 May 2008
Market highlights:
- Retail sales of Fairtrade labelled products in Australia & New Zealand have passed AU$30 million in total since the first products were sold in September 2003, and will exceed AU$35 million to the end of 2007 once all data is collected
- New Zealand itself has passed NZ$11 million in retail sales in September 2003 to end of 2007
- AU$18 million of retail sales of Fairtrade Certified products in the 2007 calendar year in Australia & New Zealand (NZ$7.7 million in NZ) compared to AU$11.4 million in 2006
- Fairtrade Certified coffee retail sales reached AU$15 million in 2007
See the full figures here (pdf, 79kb)
Download our Fair Trade Fortnight 2008 press release on Fairtrade market performance (pdf, 144kb)
Summary
2007 was another successful year for Fairtrade labelling in Australia and New Zealand. More businesses and consumers continue to join with us to provide more sustainable development opportunities to farming and producer communities in Africa, Asia and Latin America.
The number of companies participating as Fairtrade licensed operators, Fairtrade importers, and, of course, in those companies retailing Fairtrade products to consumers continues to grow. The product range is also expanding. During the last 12 months, sales of Fairtrade cotton and sugar have commenced, and sales of sportsballs, quinoa, rice have slowly grown. Sales growth continues in coffee, tea, and chocolate products (bars, drinking chocolate, drinking cocoa).
Fairtrade Labelling ANZ is excited about opportunities to further expand and engage retailers, businesses and consumers in Australia and New Zealand in transforming the trade conditions, livelihoods and lives of developing country producers and their families throughout 2008. We pay special recognition to the hard work and commitment of our licensee, importer and retail partners who are investing more of their time and energy into increasing Fairtrade sales – leading to even more economic investment in the sustainable development of producer communities.
Detail
As at the start of April 2008, Fairtrade Labelling ANZ had 130 businesses licensed to sell Fairtrade products (30 New Zealand), including one coffee roaster in Hong Kong. This compares to 89 at the beginning of 2007. Companies with Fairtrade certified products from the UK and the US are also selling their products here, including Green & Blacks (chocolate, drinking chocolate, cocoa), Clipper Teas (coffee, tea), Hampstead Teas (tea, including herbal), La Siembra (drinking chocolate) and Alter Eco (coffee, tea, rice, sugar). A handful of businesses in both Australia and New Zealand are also purchasing clothing made from Fairtrade certified cotton via the UK.
The majority of licensed operators in ANZ continue to be engaged in trading Fairtrade coffee. There are 6 licensees for Fairtrade tea, 4 for chocolate, one for sportsballs, one for quinoa, and 7 for cotton.
A full list of licensees is available from our website: www.fairtrade.com.au/buyandsell.
The retail footprint of Fairtrade products has expanded further throughout 2007. Fairtrade products are now available in cafes, from local organic, health and grocery shops, online, by mail order, from national supermarket and retail chains, and of course from fair trade shops. Major supermarkets in Australia and New Zealand continue to expand the range of Fairtrade products on shelves with Fairtrade tea and coffee available from most stores – including some private label options. Fairtrade chocolate availability from mainstream stores is also increasing. The diversity of outlets making Fairtrade labelled products available is bringing Fairtrade to different consumer groups and helping to increase awareness amongst consumers as a whole.
A searchable database of where to buy Fairtrade goods is available here www.fairtrade.com.au/locator (can be accessed through the shortcuts link as well).
You can also find a list of major retailers that stock Fairtrade labelled products here www.fairtrade.com.au/MajorRetailers. These lists are always being updated as new information comes to us. If you are selling Fairtrade products and you are not on this list, or you believe there should be retailers listed that are not, go here to learn how to be listed in our database www.fairtrade.com.au/listindatabase.
Fairtrade Sales
Reviewing the retail sales figures for Fairtrade products in Australia and New Zealand is good news for producers as the ANZ market for Fairtrade products grows rapidly.
In addition to the points raised earlier:
Sales of Fairtrade products in Australia and New Zealand for the 2007 calendar year (AU$15 million)
- grew by over 50% compared to the 2006 calendar year (AU$11.4 million)
- have tripled since 2005 (AU$6 million)
The New Zealand market, with 30 of 130 ANZ licensees (23%), accounts for more than 1/3 of the volume of Fairtrade sales during the 20067calendar year, indicating the strong support for Fairtrade amongst NZ businesses and consumers.
Other information
For a review of the activities of Fairtrade Labelling Australia & New Zealand over the first 18 months of its operation,
download the report provided to the Fairtrade Labelling ANZ AGM on Monday 4 December 2006 (65kb, pdf).
[2007 AGM information will be posted soon ]
Fairtrade FAQ
Frequently Asked Questions About Fairtrade
What is the Fairtrade Label?
The Fairtrade Label is a “seal of approval” that appears on products that meet internationally agreed Fairtrade standards and which guarantees to consumers that their purchase of a particular product will benefit the producers, their families and the surrounding communities from the developing countries that they originate from. Consumers can be assured of the benefits flowing from their purchase of products bearing the Fairtrade Label because there is a monitoring and auditing system behind that label that applies to all participants in the supply chain of the product. This includes Fairtrade certified producers (who comply with Fairtrade standards), Fairtrade registered importers (who pay a Fairtrade premium, in addition to minimum prices, that supports social, economic and environmental development) and Fairtrade licensees (who a licensed to apply the Fairtrade label to packaged products and sell them in to the market).
Where can I buy Fairtrade products?
Coffee, tea, chocolate and drinking chocolate are the Fairtrade labeled products currently available in Australia and New Zealand. Fairtrade labeled products are available from a range of cafes and retail outlets, and also via mail order. You can seach for details on where and how you can buy fairtrade labeled products in the "Buy & Sell" section of our website!
Why purchase Fairtrade?
Fairtrade certified products in Australia and New Zealand guarantee to consumers that the producers in developing countries, for example cooperatives of smallholder farmers in the case of coffee, were paid a fair price and are being supported to improve their livelihoods. Behind the Fairtrade label on these products is a Fairtrade certification system based on a clear set of internationally agreed standards that are independently assessed and monitored to ensure that the benefits of Fairtrade are clear and transparent to consumers. Most importantly, Fairtrade provides benefits that allow producers to invest in their communities, organisations and production systems, leading to long-term developmental benefits. It provides a framework that enables empowerment of farmers and workers in the face of many challenges associated with global trade. For organisations, purchasing Fairtrade products such as coffee, tea, cocoa and chocolate – all available in Australia – provides a very easy way to contribute positively to poverty eradication and sustainable development efforts in the developing world. Its high quality and tastes great; is competitive on price; much of it is organic so you can address people’s health concerns; and it provides a wonderful tool in the office to educate people about global trade, justice and sustainable development issues. It’s also a great way to demonstrate your organisations commitment to corporate social responsibility.
Other Certification Systems
Certification vs Labelling
What is the difference between certification and labelling?
Certification means that a given product or company has been checked by an independent third party for meeting a given set of standards. Many product-based certification systems will also use labelling as a tool to help consumers recognize products that meet certification standards. However, not all eco-labels are supported by credible certification systems.
Who Runs Certification Systems
Who runs social and environmental certification and labelling initiatives?Most social and environmental certification and labelling initiatives are voluntary programs that are run by non-state organisations, be they NGOs, industry players or multi-stakeholder platforms that ensure balanced participation from all interested parties. The governance structures vary dramatically between initiatives
Other Fair Trade Certification Systems?
Are there other fair trade certification systems?Fairtrade is the only certification system that ensures that producers in developing countries are paid a fair price that covers the cost of production as well as a premium for social, environmental and economic investment in the local community. A unique feature of Fairtrade is its focus on development; the certification system is specifically designed to facilitate capacity building and empowerment of smallholder producers and disadvantaged workers in developing countries.
One of the emerging certification systems, mostly in Europe at this stage, is Utz Kapeh. Utz Kapeh and Fairtrade have worked together to produce a document that outlines the similarities and differences between the two systems and labels. You can download this comparison document here.
Other Social Certification Systems
Are there other social certification systems?Yes. A number of social certification systems operate around the world mainly focusing on workers rights based on the International Labour Organisation conventions (ILO). Examples of such ethical codes include Social Accountability International and its SA8000 standard, the Clean Clothes Campaign and the Fair Labor Association. Most of these were developed for the footwear and apparel industry and the primary goal is to protect workers rights. While the actual code or standard used is very similar there are a number of differences in their verification rules and procedures.
These systems are generally used by brand name companies to monitor and improve the labour conditions of their supply chain partners. They are generally not used as an end consumer tool and therefore, rarely use product labels.
These systems can be complementary to the Fairtrade certification systems in that there is a common interest in ensuring workers rights. However, Fairtrade also has a developmental and capacity building focus and given this, the entry point into the system may be different from other systems. Fairtrade is also the only social system that includes an in-built mechanism to fund required improvements through the social premium. Given this developmental focus, a producer group could graduate from the Fairtrade system and move into a other social systems.
Environmental Protection
What about environmental protection?Some certification and labelling systems only address social justice issues in their standards while others only focus on environmental protection. A few initiatives cover both social and environmental protection. Fairtrade includes generic environmental standards that cover minimum environmental standards based on integrated pest management (IPM) with a view to building capacity in environmental protection over time. Certification standards with a stronger focus on environmental requirements include organic agriculture certification and the Rainforest Alliance Certified program.
Rainforest Alliance
What is the Rainforest Alliance Certified Program?The Rainforest Alliance Certified program is a certification and labelling program whose standards include requirements for ecosystem and wildlife conservation, waste management, water conservation, soil conservation, community relations as well as fair treatment and good conditions for workers, including compliance to key ILO conventions and national law. Standards are set by the Sustainable Agriculture Network, a group of environmental organizations in Latin America.
Unlike Fairtrade, there is no economic component to Rainforest Alliance standards so while compliance to minimum wages is required, the standards don't go beyond this to look at a fair price or living wages.
Unlike organic standards where synthetic agrochemicals are prohibited, in SAN standards there is a requirement for integrated crop management that includes a prohibition on certain types of agrochemicals, strict control of those allowed and a commitment to their reduction in use over time.
Read this article from Ethical Corporation on the competition between Fairtrade and Rainforest Alliance Certification for coffee, and also see this for an overview of environmental and social certification systems in coffee. Here is a UK Guardian article comparing RA and Fairtrade.
Consumers International has also put out an article, From Bean To Cup, exploring various coffee certifications.
Utz Kapeh vs Fairtrade
Utz Kapeh is a growing coffee certification program, popular in Europe. It has not really made it to Australia or New Zealand yet.
A joint statement from Fairtrade and Utz Kapeh has been issued to show the differences between the two systems.
You can download it here (75kb, pdf).
Fairtrade vs Organic
What is the difference between fairtrade and organic?
Many Fairtrade certified products in Australia and New Zealand are also organically certified. The Fairtrade certification ensures Fairtrade criteria such as democratic decision making, decent working conditions and a fair price are met while organic certification is a guarantee that the environmental requirements of organic agriculture standards are met. While most people understand organic agriculture as the prohibition of synthetic agrochemicals, there are other key components including nature conservation by prohibiting the clearing of primary ecosystems, biodiversity preservation, soil and water conservation, no GMOs, crop diversity, soil fertility and biological activity among others. Organic certification standards generally do not cover social justice or fair trade issues in any detail.
Many Fairtrade certified producers use the Fairtrade premium to invest in environmental projects, including extension support for organic agriculture. In this way, they use Fairtrade as a capacity building tool to improve environmental performance and gain additional market certifications at the same time. 45% of Fairtrade certified producers are also certified organic and this trend seems to be growing.
Fairtrade and Eco-friendly?
What if I want to buy a product that is both fair trade and environmentally preferable?
Fairtrade standards do cover environmental requirements but if you want a stronger demonstration of environmental protection, then one way is to buy products that are certified both for social and for environmental issues. For example, there is a strong market for Fairtrade and organic certified products, such as coffee, tea and chocolate with 70% of Fairtrade sales worldwide also being organically certified. Fairtrade and Rainforest Alliance certified is also another possible combination.
A number of credible international certification systems are cooperating to make it easier for producers to gain access to multiple certifications and take advantage of this increasing market opportunity. Some of these activities are being coordinated by the ISEAL Alliance.
Label Credibility
How can I tell if a product label is credible?
It can be difficult to tell if a product label is credible. Given that there are a number of different aspects to the credibility of a label, it is important to find out about a given label including getting answers to the following questions:
Is there an independent third party certification system that backs up the claims made?
Is the process through which the standards are set open and transparent with participation from all interested parties?
Are the standards freely available?
Are the standards set at a high enough level to really drive change toward social and environmental sustainability?
Are the governance structures set up in such as way as to ensure balanced representation of different interests in decision-making?
There are also a number of networks of certification initiatives working to ensure high quality and credible systems.
ISEAL Alliance
Global Ecolabelling Network (GEN)
In Australia, a new group has set up an information service on 'greenwashing' which reviews a range of initiatives and how they stack up to their claims. See the Eco-Shout's Greenwashing page here.
ISEAL Alliance
ISEAL Alliance The ISEAL Alliance (International Social and Environmental Accreditation and Labelling Alliance) was formed in 1999 by leading international social and environmental systems to support members standards and verification systems to attain a high level of quality and to gain public credibility, political recognition and market success (ISEAL 2002). As an example, the ISEAL Alliance has developed a Code of Good Practice for Setting Social and Environmental Standards (link to ISEAL site on this) including requirements for transparency, due process, harmonisation and participation. All members will need to comply with this code in their own standard-setting activities.
The Fairtrade Labelling Organizations International (FLO) is a member of the ISEAL Alliance along with other members including:
International Federation of Organic Agriculture Movements (IFOAM)
International Organic Accreditation Service (IOAS)
Sustainable Agriculture Network of the Rainforest Alliance (SAN)
Social Accountability International with its SA8000 standard
Forest Stewardship Council
Marine Stewardship Council
Marine Aquarium Council
For more information on the ISEAL Alliance, go to www.isealalliance.org
Global Ecolabelling Network
Global Ecolabelling Network (GEN)An associate member of the ISEAL Alliance is the Global Ecolabelling Network (GEN) (www.gen.gr.jp ) GEN is a non-profit association of third-party, environmental performance labelling organisations founded in 1994 to improve, promote, and develop the "ecolabelling" of products and services. GEN member product standards are generally based on life cycle considerations. Products certified under these systems tend to be manufactured products such as photocopiers, printers, cleaning products. The Australian and New Zealand members of GEN are the Australian Environmental Labelling Association (AELA) with its Environmental Choice label (www.aela.org.au) and the Environmental Choice New Zealand (www.enviro-choice.org.nz)
Contacts for Fairtrade
Fairtrade Labelling Australia & New Zealand
**Note that as of 30 June 2008 all our Australian staff are located in our Melbourne office. The Canberra office is now closed**
Certification & Labelling Manager - Cameron Neil - see bio here
Contact Cameron for all queries on Fairtrade trade certification, licensee reporting requirements, producer and trader certification, Fairtrade certification policy or general queries on the Fairtrade certification system globally
E: audit@fairtrade.com.au
Licensing and Labelling Officer - Audrey Jacometti
Contact Audrey for all queries on becoming a Fairtrade licensee, use of the Fairtrade Label, or general queries on the Fairtrade certification system in Australia and New Zealand
E: admin@fairtrade.com.au
Certification Assistant - Jessica Morthorpe
E: jessica@fairtrade.com.au
T: +61 (0) 3 9662 2919
F: +61 (0) 3 9663 3482
P: Fairtrade Labelling ANZ, PO Box 306, FLINDERS LANE PO, VIC, 8009 Australia
If you have queries about becoming a registered trader in Australia or New Zealand, send an e-mail to registration@flo-cert.net.
For more information on who the different actors are in the Fairtrade system, and to learn how you or your company can buy and sell Fairtrade certified products, see the "Buy & Sell" section of our website.