The rise of LCA-based ecolabels: a new standard for sustainable food choices

Until recently, sustainability certifications were primarily based on qualitative criteria: fair trade, organic certification, or animal welfare standards. However, LCA-based ecolabels take a different approach. They determine their scores based on the entire life cycle of a product—from raw material extraction to waste management—presenting hard data on environmental impact. Retailers, food processors, and even financial institutions are using this data to map out the ecological footprint of products and make better choices.

“Most Western European retailers are already experimenting with LCA-based ecolabels. Often, these are private initiatives,” says researcher Seval Cicek of Wageningen Social & Economic Research.

The need for harmonisation

While the growth of these labels is promising, the landscape faces significant challenges. There are numerous public and private labels, each with their own methodologies and databases. This leads to consumer confusion and increased administrative burdens for producers.

That is why the Eco Food Choice project—a collaborative initiative between European research institutions and governments—emphasises the need for a standardised ecolabel system. Their recent report provides an overview of the 16 most relevant LCA ecolabels in Europe, identifying key obstacles and opportunities.

Who benefits from ecolabels?

LCA-based scores extend beyond consumer support. Retailers and food processors benefit from standardised environmental data, particularly for their reporting obligations under the Corporate Sustainability Reporting Directive (CSRD). These labels also provide valuable insights for the financial sector, such as assessing sustainability impacts and risks for their clients. Finally, LCA ecolabels can serve as incentives to make agriculture and production processes more sustainable.

Current challenges and the path to harmonisation

Despite their potential, LCA-based ecolabels face significant barriers:

• Fragmentation: Many labels use different methodologies, leading to inconsistency and confusion.
• Data Challenges: High costs for data collection and limited access to quality data remain major obstacles.
• National Regulations: Differences in legislation between countries complicate harmonisation.

Key insights

The study 'Overview of LCA-based ecolabelling schemes in Europe' identifies innovative approaches in scope, methodology, databases, IT, and governance. The key findings include:

• The most advanced ecolabels can make reasonable estimates of the greenhouse gas emissions of food products, based on existing retailer product databases. Suppliers therefore do not need to provide additional data.
• However, it is important for suppliers to provide additional company-specific data to allow for accurate comparisons within a product category.
• Beyond greenhouse gas emissions, other themes such as biodiversity loss should be integrated to align with the European Product Environmental Footprint and the Green Claims Directive.
• There is an urgent need for a pan-European harmonised approach with a fully transparent methodology and an independently managed, non-profit database.
• The private sector can play a crucial role in developing operational tools, including IT solutions for data collection, improved user interfaces, and building on existing data exchange systems.

A joint vision for the future

A harmonised European ecolabel system should consist of six core components:

1. A standardised and transparent LCA methodology.
2. Clear requirements for primary (company-specific) data.
3. An independently managed database with average impact figures.
4. Transparent methods for translating LCA scores into consumer labels.
5. Robust verification processes.
6. A uniform label design that encourages both consumers and producers to adopt sustainable practices.

A strong governance structure is crucial, encompassing all six of these elements and involving stakeholders from both the public and private sectors. Co-creation with all relevant parties can contribute to balanced development, though speed remains a challenge. Researcher Koen Boone states, “Collaboration between private and public parties is crucial. In the long run, this will lead to the best ecolabel.”

Success factors and challenges

Successful LCA ecolabels must strike a balance between administrative burden and accurate measurements. Key aspects include:

• Accessibility and quality of data.
• Ensuring all relevant environmental impacts are accounted for.
• Large-scale application at low costs.
• Transparency and broad stakeholder involvement.

A game changer for sustainability

LCA-based ecolabels have the potential to fundamentally change how we consume and produce food. They not only provide transparency for consumers but also serve as a powerful tool for businesses to integrate sustainability into their supply chains.

If Europe truly wants to commit to sustainable food choices, a widely supported, transparent, and harmonised system must be established. Only then can consumers and businesses genuinely incorporate environmental impact into their decisions. The question now is: how quickly can the market make this transition?