AUGUST 2 ― One of the things I like to do when I am in a new country, be it for travel or studies, is to visit the local grocery store.
Why do I do so, you ask? Although it is partly because I am attracted by the various eye-catching product packaging, it is often the wide ranging products available that I am more curious about.
These products give me an insight into the needs and consumer demands of the country, which is somewhat related to the local culture.
For example, Coca-Cola may be a generic brand sold worldwide but it does come in all shapes and sizes and sometimes even localised flavours according to the specific country.
It was not too long ago that McDonalds had their cendol ice-cream or lychee pie promotions in Malaysia. There is also the case of substitution of function.
We might have Tongkat Ali drinks here in Malaysia but in China, the more familiar ginseng fulfills similar market demands. Who knew that one can learn so much by looking at the products on sale?
After living in the United Kingdom (UK) for nine months, walking through a grocery store in Malaysia can be an eye-opener. I notice things that I have never noticed before while growing up. For instance, compared to items sold in the UK, many of the everyday food items sold here do not have certain labels attached.
Labels, labels, labels
No, I do not mean the labels stating the contents but instead eco-labels that indicate the level of sustainability certification. Examples include Rainforest Alliance, Blue Angel, Marine Stewardship Council (MSC), Roundtable on Sustainable Palm Oil (RSPO) and Forest Stewardship Council (FSC). Now before I explain what these individual labels do, let me explain what certification means.
The certification, or more specifically eco-label certification movement began in the 1970s as a new approach to environmental governance.
It relies on the market to self-regulate so as to develop sustainable consumption. In theory, since the consumers of today are increasingly aware of their impact on the environment, they would opt for more environmentally friendly products.
The producers who then want to tap into this growing market would lean towards environmentally sustainable practices to have a competitive advantage over the producers that do not.
Although this certification is usually entirely voluntary to the producers, it is hoped that this shifting demand would also shift the entire market, be it oil palm production or fisheries harvest, to more sustainable practices as well.
This form of entrepreneurial democracy is billed as a win-win solution for business and Nature, since producers can continue to use natural resources without disregarding environmental protection.
Classification
Eco-certification can be classified into three types: first-party, second-party and third-party. A first-party certification would involve the company that produced the product itself making a claim to sustainability.
This is an untested claim that is not verified by any independent bodies and could be an attempt to green-wash consumers by charging them a premium for their products.
It would be akin to your local chicken rice shop claiming that they make the best chicken rice in Malaysia but have no means to prove it.
A second-party certification would involve producers banding together to establish a label based on a voluntary code of ethics. Besides that, second-party certification could also mean that the producer contracted an external laboratory to perform tests on their products for assurance of its sustainable qualities.
However for both these cases, the ability of the consumer to trace the validity of the test results is either weak or lacking and there might also be conflict of interest issues with the producers and testers themselves.
A third-party certification, which is the most robust form, involves independent verification by trained and approved certifiers. These certifiers will inspect the products based on agreed and often international standards and criteria on a regular basis.
Hence most of the trusted international brands rely on third-party certifications to assess their sources of raw material. For example, P&G and Unilever which are multinational conglomerates of consumer goods depend on RSPO to certify their sourcing of sustainable palm oil.
Aside from that, IKEA recently made a commitment to serve only MSC-certified seafood and with many large British supermarkets on board, the scheme seems to be working.
Now, you might be curious to know what happens if the producer goes against the agreed criteria. Well it is simple; the company’s membership with the certification is first suspended and then the company itself is named and shamed.
Only this year IOI Group was met with a suspension from RSPO due to several infringements, hence blocking their access to the sustainable palm oil market.
Current profit is one thing, but I believe that company reputation is where it hurts them the most. In the future, buyers will be more cautious when dealing with the group even after their suspension is rescinded.
Our responsibility
Since this is a form of consumer-centric governance, the onus is then on us to take a stand. We have to ask the critical questions to the brands that supply our food and even to those brands that we grew up with. Where does it come from? What practices are used in the harvest? What is being fed to livestock or aquaculture?
Looking to the future, technological innovation might allow the consumer to do just that. Companies like Sourcemap.com have made it possible for anyone with a smartphone to obtain detailed information about the product by just scanning the QR code.
When incorporated alongside trusted third-party certifications, we could potentially convert entire markets to sustainable practices.
At the end of the day, it boils down to price and awareness. Admittedly products that go through certification are slightly more expensive than those which do not.
However the solution to this, I believe, is to increase the demand for sustainable goods by improving awareness about their existence and benefits to the environment.
Only then can more producers join the market to meet the demand increase. Subsequently, economic principles of demand and supply dictate that the prices of goods will move in the opposite direction.
So during your next visit to the grocery store, look out for the market specific eco-labels. Better yet, base your consumer choices on producers that have them on their products. Like how we choose our leaders, together we can make entrepreneurial democracy a form of environmental democracy as well.
* This is the personal opinion of the columnist.
