The opinions expressed here by Trellis expert contributors are their own, not those of Trellis.
Sustainability may be experiencing scarcity these days, but one thing remains abundant: sustainability certifications. With more than 450 listings on the Ecolabel Index, a global directory of environmental certifications, there have never been more choices for companies to dress up their brand.
As the leader of a nonprofit that administers sustainability certifications, I’ve seen how they help increase customer trust, bolster communications and offer templates for critical operational decisions. They can seal the cracks of regulation and policy by encouraging companies to go beyond minimum requirements across virtually any dimension, from waste management practices to worker welfare.
But given the large number of options, it’s difficult to build a certification portfolio. No one size fits all, even within a single product category. Brands like Seventh Generation, Stonyfield Farms and Equal Exchange each boast as many as six labels, whereas their peer brands Pampers, Chobani and Dunkin’ lean very little on third-party certifications.
And while McKinsey & Co. has found evidence that more is better (up to a point), practical constraints, such as budgets, time and physical packaging space, limit the overall number of certifications that a given company might reasonably achieve.
As you consider your own portfolio of sustainability certifications, here are some considerations that will help.
1. Understand the certification landscape
Since the goals and scope vary widely from one certification to the next, it helps to sort them into high-level groupings.
First, consider the boundaries of a certification. Some cover total companies or brands. Others look at portions of a business: a product line, a facility or a supplier. And others look at product inputs or ingredients, such as cotton, synthetic textiles, wheat, chemicals or energy.
Next, consider the practices or outcomes being evaluated. All sustainability certifications look broadly at environmental, social and/or governance activities. But within each of those buckets there are many dimensions. Does the certification evaluate carbon reduction actions? Does it set a minimum bar for worker welfare, wages or safety? Does it look at practices of the board of directors?
It’s also important to consider how the certification is administered. The international standards organization iSEAL, which defines credibility principles for certifications, advocates factors such as impartiality, transparency and stakeholder engagement.
Nonprofit and government-led structures, such as those behind the FSC Certified label and EnergyStar are better poised to satisfy these principles because their bylaws and stakeholder interests are formed around a mission, rather than a goal to maximize profits. Conversely, a consultant or service provider that administers a certification, but whose shareholders seek financial gains, will have stronger incentives to maximize profits rather than outcomes.
Put all of these pieces together and you have the tools to understand the landscape.
Key questions:
- What are the boundaries of a certification?
- What practices and/or outcomes does a certification cover?
- How is a certification administered and does the approach follow accepted best practices for integrity?
- How will all of these factors resonate with your audience or customers?
2. Align certifications with broader business goals
Certifications should complement, reinforce or piggyback on business priorities. For example, if your company’s top goal is to expand into a key retail channel, a sustainable product certification may be non-negotiable. A mid-sized snack brand seeking shelf space in a natural-food chain, for example, may need a Fair Trade certification as part of the chain’s sourcing policy.
Key questions:
- What business goals (expand your market or brand, hire a new team, meet procurement requirements, comply with regulation, respond to investor pressure, etc.) would a certification support?
- Which certification checks the most boxes across those business goals?
- What future goals would be easier to achieve if you were to start working on them today as part of a certification process?
3. Consider regulatory overlap
A sustainability executive may juggle dozens of reporting frameworks to meet global, national, state, investor and customer requirements. While much of this reporting never sees the light of day, look for ways that your compliance efforts can boost strategic objectives. For example, companies that start to report Scope 1 and 2 emissions to comply with California’s Climate Corporate Data Accountability Act can use their carbon inventory to achieve a climate certification. Recognize that while regulation tends to focus on reporting and disclosure, certification is an opportunity to validate and communicate real progress and actions.
Key questions:
- Which strategically valuable certifications would leverage data you already compile for compliance reporting?
- What regulations will you need to meet in the future and how can certification today make you better prepared?
4. Use discretion
Certifications often require sustained effort – supplier engagement, audits, data collection, internal support and more – so avoid using them as one-off PR wins. Instead, look for certification pathways that align with goals and values that are embedded into your company’s DNA. For example, if your 10-year goal is to have low carbon intensity, fairly paid suppliers and strong governance, a narrow, single-material certification won’t help you take big steps toward those goals.
Ask what results your business will prize not just this quarter, but in five or ten years. That way you’ll be able to see past short-term market volatility and use certifications as a template for the future. Be critical of the integrity and ambition of your options. Rubber-stamp certifications – those that set a low bar or are customized to each certified business and don’t follow a consistent standard – aren’t beneficial in the long run because they introduce risk and fail to push your ambition.
Finally, mind the company you keep. When you adopt a standard, you associate yourself visibly with other certified entities. Members of certification communities often engage in collective marketing activations and engage in shared learning. Choose peers whose brand reputations complement your own.
Key questions:
- Does the certification point your business in a direction it wants to go?
- Will the certification offer enough ambition to help your company grow over time?
- Is the certification rooted in strong and transparent governance practices, so that it will withstand near-term market and policy swings?
- Who else has a certification, and are you eager to be in community with them?
Sustainability certifications can deliver immense value when chosen strategically. Start by understanding your options and match them with core business goals, stakeholder needs and market requirements. Then leverage compliance reporting data when possible and look for credible standards that will scale with your ambitions over time. With this discipline, a well-selected certification is more than a badge—it’s a lever for growth, trust and long-term impact.
