In the face of surging skepticism around social and environmental claims, sellers and buyers alike are demanding verification. Sustainability certification has become a booming industry with over 400 in use and new ones emerging almost weekly. This, in turn, has led to scrutiny and public criticism of apparent shortcomings.

Understandably, the net result has been mounting confusion and uncertainty about what particular certifications deliver and their relative value. To help consumers and businesses navigate this landscape, the Consumers Union launched its Greener Choices database several years ago, providing basic information on over 300 labels. Realizing greater breadth and depth were needed, the World Resources Institute recently launched its more detailed Global Ecolabel Monitor.

Equipped with this intelligence, businesses face the question of how to use it to determine what designations to pursue and ask of suppliers. Strategic selection is key. Given the resources involved, it's not practical to stamp every admirable trait. Nor is it necessary or beneficial, given that businesses can improve many practices and ensure positive outcomes with their own resources and supplier engagement, and the reality that claims lose their value with saturation. To this end, there are several factors to take into account:

1. Relevance
This is among the first aspects to consider and will help identify potential areas for labeling. Determine what's pertinent to your mission and key impacts, real-world issues, suppliers and stakeholders. If you have an existing sustainability strategy or materiality analysis, it's a perfect starting point to ensure alignment across business activities.

2. Relative Priority
Pare down relevant certification areas to what matters most -- your biggest impacts, responsibilities and stakeholder concerns. Overlooking these and highlighting trivial issues can invite criticism for greenwash. You're likely to end up with multiple focal points, given the diverse factors and stakeholders involved.

3. Recommendations
Ask peers, suppliers, field experts and key stakeholders what options they would suggest, any they would advise against, and why. Scan the market to see what comparable businesses are doing and inquire why they selected that path. Close competitors may choose one program over another simply to maintain differentiation, so ask several colleagues for representative input.

4. Governance
Research the ethics behind each label's development and implementation. Look for independence, regular efficacy assessments and direct audits, 3rd party verification, periodic updating of criteria, broad stakeholder involvement in governance and standard setting, organizational and process transparency, public reporting and the like. Alignment with the ISEAL Alliance Code of Good Practice is a good indicator here.

5. Real Impact
Consider measured, positive outcomes for workers, suppliers, end users, your business, the environment and other stakeholders. Many certifiers produce annual reports and all should be able to produce data demonstrating how their offerings leave people, planet and commerce better off than the status quo. For a balanced, unbiased view, review assessments from 3rd parties and solicit input from directly affected stakeholders, such as workers in supply chain verification programs.

Next Page: The importance of rigor, requirements, ROI and more.