GEN Annual Report 2013

ANNUAL REPORT2013

We have a peer review process – GENICES – which

has been embraced by almost all our members – this

was internally developed – by experts, for experts.

Many governments in both East and West are using

ecolabels as part of their procurement policies, and

it is a source of pride that we have all had a part in

this development.

Most, if not all of our programmes, are still growing

despite, in many cases, very limited resources – I

nd that very exciting, particularly as there has

never been a more critical time for us all to work

together, with increasing fervour, in reducing

environmental impacts.

Remembering we are a network of diversely

established and managed organisations, across a

wide range of political and cultural landscapes, I am

constantly humbled to see just how harmoniously

we are able to work together – helping each other

wherever possible. Ongoing collaboration and

courtesy will continue to serve us well in cementing

relationships and growing into the future.

I would like to thank the Board for their hard work

again this year – all are volunteers and give of their

time willingly. The general affairs and secretariat

ofces have been our administrative backbone for

another positive year, and also deserve our

appreciation.

As another year closes and we at GEN celebrate our

20th Anniversary in 2014, it is interesting to reect

upon how things have changed in the time I have

been involved in ecolabelling.

This evolution of GEN was strikingly apparent when

we met for our last AGM in Brussels, the political

centre of Europe, as guests of the Director General

(Environment) of the European Union. The level of

attention and welcome accorded delegates, and

your Board, by internationally high-ranking gures

in government, environment and ecolabelling made

a statement about the stature and respect reached

by our global organisation.

I would venture to suggest that it is harmony and

cooperation that have built up this platform of

respect, in addition to our combined expertise and

knowledge which was keenly sought.

The opportunity to gather in such an inuential

setting, as we are about to achieve a 20-year

milestone, naturally leads us to consider and

appreciate all those whose conviction and

imagination started this journey. Few of the

'veterans' remain - I believe six present members

were part of the original group. Now we have

grown to 28 members, representing well over 50

diverse countries.

Ecolabelling has moved a long way from those early

beginnings; where we were once regarded by the

WTO as a barrier to trade, UNEP is now offering

training packages to encourage the use of ecolabels

[Type1] as an aid to Sustainable Public

Procurement.

Concordand Cooperation

ANNUAL REPORT • 2013

GEN Chair Robin Taylor

02 13

1

INTRODUCTION

Two decades of trustBuilding a better worldThe Global Ecolabelling Network

is a non-prot association of Type

1 ecolabelling organisations

around the world. We believe

that truly and demonstrably

'greener' products are an integral

component to the broader

sustainability movement and

know that our members

encourage environmentally

better products and services

through the stringent

environmental criteria demanded

by their published standards.

Since its inception in 1994, the

reach of the GEN has continued

to expand and gather inuence

and prole internationally. With

28 members and associate

members representing some 57

countries (2014 gure), the GEN

works tenaciously to improve,

promote and develop the

ecolabelling of products and

services on a global scale. While

the GEN does not actually

develop its own criteria or certify

products, we support all

members and their respective

programmes as they undertake

the development of

environmental leadership

standards, and the ecolabelling

of products and services.

Over two decades of trust, we

have worked towards

international cooperation,

recognition and harmonisation of

ecolabelling standards; we share

knowledge, and build and sustain

a global network of authoritative

environmental labelling

practitioners. Special attention

has been paid to assisting

developing nations keen to

authenticate and advance their

sustainability.

GEN promotes and lifts Type 1

ecolabels above the plethora of

unsubstantiated green claims

and, in doing so, we empower

consumers, professional

purchasers and industry to make

informed purchasing decisions,

providing them with science-

based, accurate and transparent

information about the

environmental attributes of a

product or service.

2 ANNUAL REPORT • 2013

With 26 members, and two associate members,

representing 57 countries and territories across

the globe, the collective expertise of the Global

Ecolabelling Network is unparalleled. Many of

the ecolabelling programs operated by our

members have existed for over 20 years.

GEN members mainly operate transparent “Type

1” ecolabelling programmes that rely on experts

and stakeholder groups to inform the

development of stringent environmental criteria,

and often commission independent (third-party)

auditors to determine whether a product meets

these stringent criteria. You can trust that a

product bearing the mark of one of our members

provides genuine environmental benets.

GEN’s endeavours in 2014, and beyond, are to

help government ofcials, retailers and

consumers understand that not all environmental

labels are created equal, and that it is important

to understand what a standard requires, who

developed the standard, what process was used

to develop it, and how a product is veried as

actually having met requirements.

“Type 1” ecolabelling programmes develop their

standards in an open, public, transparent

process. Criteria and product category differ

among the membership, reecting local and

regional variables, but all standards address

multiple environmental attributes and most have

requirements for items such as toxicity, air

quality, energy use, recyclability, VOCs,

carcinogens and other issues of concern. Life

cycle thinking is used by our members in

developing standards which minimise

environmental impacts across the entire life

cycle of a product or service, from raw material

extraction through to use and eventual disposal

or breakdown.

While membership is intended only for Type 1

ecolabelling organisations, associate status can

be granted to organisations that formally support

ecolabelling principles and goals, but which are

not actually ecolabelling practitioners. The GEN

currently has two Associate Members: ISEAL and

the International Green Purchasing Network.


For our timeand beyond

A worldwide resource

3

The International Organisation for Standardisation (ISO)

has identied three broad types of voluntary labels.

The most robust, holistic category is referred to as

“Type 1” and it has a unique combination of strengths.

Type 1 ecolabelling programmes

Ÿ are voluntary

Ÿ their standards address multiple environmental criteria

Ÿ they consider the entire life cycle of the product or service

Ÿ they are transparent in their standards development process

Ÿ they rely on independent verication

Type 1 ecolabels clearly identify products representing

environmental leadership, rescuing consumers from having

to interpret vague and often confusing environmental

claims, or compare highly scientic data, to determine

environmental preferability of one product over another.


A world-class programme

AGM

November 2013 began with a cold and

blustery winter week in Brussels, as GEN

members gathered from every corner of the

globe at the Crowne Plaza le Palace hotel, an

efcient and well-presented venue, for their

annual conference and AGM. The ofcial

host was the European Union Directorate-

General for Environment; the opening theme

was challenges to greening markets through

ecolabels.

ANNUAL REPORT • 2013 5

On 5 November, the directorate's Mr Pavel

Misiga welcomed delegates before an

opening speech from Commissioner Janez

Potočnik. He reminded the meeting of

consumer research that proves climate

change consciousness, and a desire for true

“eco-products”.

Commissioner Potočnik lamented the

proliferation of greenwash and reiterated the

importance of the “Type 1” ecolabel. Half of

Europe's 500 million consumers do not trust

environmental claims, he reported, and

blamed self-declared claims for causing

confusion in a third of consumers.

He suggested the conference might have

input toward the revision of the EU ecolabel

in 2015. “As the world's largest consumer, the

EU is an excellent place to make a

difference,” he said.



AGM

GEN chair Robin Taylor called for greater

international collaboration in ecolabelling and explained

the differences in the three ISO-defined ecolabel types,

an issue that was further explored in workshops during

the week. He also outlined the achievements and work

faced by GEN. There is Type 1 ecolabelling in all corners

of the world, said Mr Taylor, and throughout 57 countries

and 20,000 companies there are 132,000 GEN products

certified (2013). All Ecolabels are not created equal, he

reminded. There are over 400 green labels on the current

market, however there is a lot of “greenwashing” that

must be considered.

Robin Taylor listed the challenges as:

· Governmental programmes in developing economies

are not necessarily geared towards ecolabelling

· Engaging procurement professionals within this

effort is not evident

· We must find an efficient way to enhance

collaboration between programmes

· The profile of GEN must be raised

7

·

·

·

·

New Zealand ambassador to the

EU, H.E. Vangelis Vitalis, with

Robin Taylor


AGM

8

AGM


AsiaGEN treasurer Mr Osamu Uno outlined the

progress of China, Korea, and Japan's mutual

recognition agreements on ecolabels since their

agreement to work in 2005. collaboratively

Chinese TaipeiMr Chin-Yuan Chen stated the label's first

MRA was with Canada. The Chinese Taipei EDF

ecolabel agency undertakes verifications for their

Green Mark licensees who apply for foreign

ecolabels. Mr Chen said the GENICES process is

the most efficient way of establishing mutual

trust between ecolabel agencies. He presented a

graphic illustrating the network of MRAs from his

label's perspective.

Ms Christine Kalui

AfricaThe level of certifications and available products is still

low, although there is quite a large number of sector specific

labels. There is support from the United Nations Environment

Programme, Germany’s BMU and GIZ organisations and the

Swedish agency SIDA, but SMEs (small/medium enterprises)

shoulder the burden - with difficulty.

For these reasons, Africa needs support for marketing,

capacity building, networking, data research and

management in order to successfully build Eco Mark Africa,

says Ms Kalui.

United StatesBoard member Angela Griffiths (Ecologo USA) affirmed

the importance of mobile devices as better eco-educated

consumers seek more information on product sustainability

credentials. The USA government spends over $350b annually

on mostly environmentally preferable products and services.

She said that 71 percent of retailers market sustainability as

part of their brand image, and also introduced the expansion

of EPEAT, a greener computer guide.

South AmericaBoard member Guy Ladvocat (ABNT Brazil)

introduced the UNEP Project on Sustainable Public

Procurement and Ecolabelling (SPPEL). The objective of this

project is to provide capacity building for ecolabelling,

provide technical assistance to public and private sectors on

development, and to stimulate the demand and supply of

sustainable products in the Southern Cone region of South

America. There are 49 environmental labels in the region, he

said, but ABNT is the only Type 1 ecolabel.

AGM



Featured PresentationsThe Beguinage, Bruges.

After a full conference opening day, 6 November

was a familiarisation day where delegates were taken by

coach to the nearby World Heritage town of Bruges

(Brugge) fostering informal discussions and networking.

This was followed on 7 and 8 November by a full

programme of presentations, workshops and the formal

AGM. During this, a sub-committee was established to

review the GEN bylaws.

A presentation by Ms Mizue Sekine of the Japan

Ministry of the Environment outlined her country's Green

Contract law and environmental policy.

Ms Susanne Heutling from Germany's Blue Angel

reported on climate impact studies involving 60

household and office products, which culminated in 44

product groups being created for criteria development.

Several months after the project launch, 37 of the

criteria had no licence holders. “A bird with one wing

cannot fly,” Ms Heutling commented. “Without

marketing communications the wing of technology and

standards cannot fly.”

So The Blue Angel was galvanised to undertake fair and

convention presentations, to develop material for

schools, involve celebrities in marketing and advertising

campaigns, sponsor awards, and achieve magazine

exposure by creating artistic and celebrity

advertisements that were so well conceived they were

placed free. The campaign was launched and

championed by the German Environment Minister.

Susanne Heutling receives the GENICES

certificate for the Blue Angel.

AGM

Telling our stories

The AGM and conference week was concluded by Michele Galatola (right). Picking

up from Ms Heutling's example he ventured that

science-based criteria that are developed as a

political decision have limited value. The EU label

has 31 product groups, he informed, but is now

slowing down development through staff reduction

and economic restrictions. Only two out of a long

list of task forces have started due to a lack of

resources. “We have a portfolio which is too broad.

Criteria with no licensees are probably a waste of

money,” he observed. Reducing the cost to SMEs for

assessment in 2009 did not result in increased

licensed products, he reported.

Mr Galatola also acknowledged that it takes the EU

18 to 20 months to review a specification “which is

too much. Best-in-class is not the way to move

ecolabels forward,” he told the meeting.

He also spoke on materiality, essentially the

relevance and effect of matters addressed by

standards. “Once I have a tool that addresses the

major objectives, then we can look to others. I

have the impression that in ecolabelling we started

backwards. We should ask why for so many product

groups we have so few licences – or no licences.”

He suggested the review process of 2015 could

result in an entirely new ecolabel for Europe.

“We have to focus on what really matters for the

environment.”

AGM

GEN Communications Advisor Michael Hooper explored methodology for

overcoming one of GEN's main challenges, explains

the secretariat, that of communicating across

cultures. When identifying solutions on how to

spread sustainability, he transmitted the idea that

environmental triggers are all around us, whether

they be set off by purchasing an ecolabelled

product, or by noticing a habitat change nearby

caused by our unstable environment.

“Mr. Hooper recommends communicating one's

solutions to overcoming the challenges of greening

markets via ecolabels through the act of

storytelling and promoting internal conversations

on this topic, like those that take place when GEN

members meet,” reported secretariat manager

Katherine Larocque. “The GEN website

furthermore aims at evoking its purpose of

improving, promoting, and developing ecolabelling

through its visual identity and furthermore serves

as a nesting ground for GEN members to share

their thoughts on the GEN Forum.”

On the second day Michael Hooper gave tips for

reaching beyond GEN, to share stories with the

world. His presentations included real samples of

“the world's best chocolate”, the history of

Brussels, clips from a pop cabaret and a vintage

television show, live computer internet sessions,

workshop breakouts and an international stadium

anthem performance.


Chair Robin Taylor is encouraging members to submit to a GENICES re-

assessment at least every five years.

“It should be viewed the same as a specification review, where it is

important to maintain and update standards,” says Robin. He also reports

that over 65 percent of members have completed the GENICES process.

“This is a very pleasing situation to report as we enter our third decade.”

The full list of members with GENICES certification is currently:

GENICES– by experts

for experts


Canada EcoLogo

New Zealand Environmental Choice New Zealand

Czech Republic Czech Ecolabelling Agency

USA Green Seal

Chinese Taipei Environment and Development Foundation

Thailand Thailand Environment Institute

Ukraine Living Planet

Sweden SSNC

Nordic countries Nordic Swan

Russia St. Petersburg Ecological Union

Hong Kong Green Council

Korea Korea Environmental Industry and Technology Institute

Singapore Singapore Environment Council

Israel Standards Institute of Israel

Japan Japan Environment Association

China China Environmental United Certication Centre

Brazil ABNT

Germany Blue Angel

China Quality Certification Centre

13


Robin Taylor joined the GEN Board in 2003. He is general manager of the New Zealand government-owned ecolabel which is overseen independently by the not-for-profit NZ Ecolabelling Trust. Robin has a background in brand supervision and marketing strategy with multinational companies. In 2008 he was elected Chair of GEN and over the last six years has encouraged the streamlining, development and contemporary character of the organisation.

Hans-Hermann is a chemist by profession and completed his thesis at Humboldt University of Berlin 1984. In 1991 he began his career as a scientist at the Federal Environment Agency in Germany and has since been working in the product assessment. Since 2005 he has been head of the section “Eco-design Ecolabelling and Green Public Procurement at the German Federal Environment Agency which runs the Blue Angel Ecolabel.

Angela is director of research and advisory services at UL Environment in Vancouver, and has a PhD in Resource Management and Environmental Studies. She has technical expertise in sustainability planning, cumulative environmental effects assessment, climate change, solid waste management, and energy and water use efficiency.

Guy is systems certification manager of ABNT Brazil, where he also coordinates a greenhouse gas management project for small and medium companies. With a degree in mechanical engineering, he has 27 years experience in quality management and auditing, and for five years was project manager of the Brazilian Institute of Nuclear Quality.

HANS-HERMANN EGGERS

Eva is currently head of the department of “Shop and Act Green – Good Environmental Choice Ecolabel” in Sweden. This organisation is part of the Swedish Society for Nature Conservation.

EVAEIDERSTROM

ANGELAGRIFFITHS

GUYLADVOCAT

Bjorn-Erik has been general manager of the Nordic ECO labelling prorgamme since 1993, and holds an M.Sc. from the University of Helsinki in fish toxicology. He was previously the general secretary for a sports fishermen's Association in Finland and then senior engineer at Norway's biggest sewage treatment plant.

BJORN ERIKLONN

Xiaodan is a Research Fellow in environmental protection. She is Director-General of the China Environmental United Certification Centre, a third-party certification body with responsibility for China's environmental labelling. Xiaodan graduated from Wuhan University of Technology in 1982 and was previously Deputy Director-General of the China National Accreditation Centre for Environmental Conformity Assessment.

XIAODAN ZHANG

ROBIN TAYLORChair

BOARD

ENERGY andEXPERIENCE

14

Country Ecolabelling programme

Logo Number of standards Certied products/services

Australia Good Environmental Choice Australia

38 2000

Brazil ABNT Environmental Quality

25 347

Canada Ecologo 76 10,000+

China China Environmental Labelling (CEC)

96 149,922

China Environmentally friendly certication

36 683

China Hong Kong Green Label

60 109

China Hong Kong Eco-labelling

Chinese Taipei Green Mark 127 12,000

Czech Republic National Program Environmental label

36 300

Germany The Blue Angel 120 12,000

Indonesia Ekolabel Indonesia 12 24

Israel Israeli Green Label 83 420

Japan Eco Mark Program 57 5368

28 members


Country Ecolabelling programme

Logo Number of standards Certied products/services

Korea Korea Eco-Labelling Program

150 10436

Malaysia SIRIM Eco-Labelling Scheme

14 322

New Zealand Environmental Choice New Zealand

39 2000

Philippines Green Choice Philippines

37 36

Russia Vitality Leaf 16 142

Singapore Singapore Green Labelling Scheme

49 2500

Sweden Good Environmental Choice

11 682

Sweden TCO Certied 12 3223

Thailand Thai Green Label Scheme

Ukraine Program for Ecologial Marking

51 580

USA Green Seal 32 3808

European Union Countries

EU Ecolabel 31 39,000

Nordic Countries Nordic Swan 60 6000

57 countries


During the nancial year (to 31 December 2013),

overall revenues declined due to reduction in

membership fee payments, the principal source of

income for the organisation. This was slightly

offset by an increase in donations.

Results were also affected by realistic write-offs

for bad debts, and adjustments following

reconciliation of gures with previous years.

Efforts were made to create a more modern web-

based interaction between members as part of

continuing development of the GEN on-line

presence. That system has now been

implemented. Total re-design and increased

frequency and promptness of publications

(principally GEN news and the annual report) were

achieved through an investment in adoption of

internet-based publishing. This reduces print and

paper waste, and also minimises the cost and

resource use incurred through physical document

distribution.

Personnel costs increased, but there is otherwise

consistency by comparison with the previous year.

The nancial data were approved by the

independent committee set up by the AGM – this

consisted of Benny Braun of The Standards

Institution of Israel and Lisbeth Engel Hansen of

Ecolabelling Denmark. The board of directors

thanks them for their inspection and approval of

the nancial report provided by the treasurer,

which is summarised on the following page.

In a tenuous world nancial climate, the year has

again been one of seless voluntary contribution,

value building, and of generous engagement by

board members and their organisations. The board

especially wishes to thank the German

government for its donation.

The end-of-year asset position of GEN remains

strong, with assets at their second highest level in

the history of the organisation.

Overall, the board is satised that the

organisation remains in a positive and sound

position.


FINANCIAL REPORT


FINANCIAL SUMMARY

2013 Statement of Operations and Changes in Net Assets

The Global Ecolabelling Network

For the year ended December 31, 2013

Revenues (in USD)

2013 2012 2011

Membership Fees 129,878 $139,124 $151,634 Donations 13,067 10,205 10,821 Interest Income 96 88 83 Other Income 571 1,279 1,100

143,612 $150,696 $163,638

Expenses (in USD)

Personnel 68,000 $48,000 $50,980 Website Development 22,080 3,016 1,851 Annual General Meeting & Board support 12,795 15,000 17,126 Travel 14,224 15,475 2,557 Professional Fees 2,490 2,266 2,200 Bank & Misc Charges 3,215 2,337 1,927 Technical Assistance Support 21,777 15,000 10,000 Miscellaneous (design, on-line, reports etc) 13,895 20,370 - 158,476 $121,464 $86,641 Bad debts / prior period adjustments (7,834) (2,000)

Net Revenue for the Year ($22,698) $27,232 $74,997

Net Assets—Beginning of Year $240,195 $212,963 $135,966

Net Assets—End of Year $217,497 $240,195 $212,963

18

The Global Ecolabelling Network would like to thank its

members, associates and partners involved in promoting

the ecolabelling of products and services around the

world. GEN is always open to working on collaborative

initiatives of mutual interest.

To discuss potential opportunities or learn more, please

contact your nearest country board member or:

The GEN Secretariat

171 Nepean St, Suite 400

Ottawa, Ontario

K2P 0B4

Canada

Tel: +1 613 368 4419

Fax: +1 613 247 2228

[email protected]

globalecolabelling.net

Editorial direction: Michael Hooper | Spotlight Creative Media

Design: John Newcombe Adroit Design Ltd

Cover Photography: Johannes Jansson | norden.org

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GEN Annual Report 2013