10 Must-Answer Questions When Mulling Third-Party Certification

My colleague Natalie Reitman-White shared a valuable comment after reading my recent article on choosing third-party labels. She stressed the importance of a point referenced only briefly there -- determining whether to pursue certification or implement independent initiatives, which may bring greater benefits for people, planet and business.

She is certainly well versed in this arena as the sustainability manager at Organically Grown Company, which is engaged in Certified Organic, Fair Trade Certified, Domestic Fair Trade Certification and Organics Unlimited's GROW Bananas.

In some cases, certification is clearly preferable. In other cases, well-designed in-house initiatives, such as purchasing guidelines, supplier engagement and producer capacity building may yield equal or better returns for all involved. GBX insetExternal agencies and consultants can help fill internal gaps to ensure high-integrity programs. Transparent communications can give efforts credibility. Many companies combine both approaches across broader needs.

It's important to understand your requirements, impacts and capacities and compare outcomes of each path.

Here are 10 questions to help you focus:

1.  What are your needs and options? List the practices and attributes you want to verify and communicate, what's required to do this, why you feel external programs might be necessary and what your alternatives are. This will narrow down potential options to refine as you continue your inquiry.

2.  Is relevant terminology regulated?
Some terms can be used only if certification is obtained, such as organic on food products (with the exception of operations below a defined revenue). If it's essential to communicate a specific attribute, look into the legalities. The launch of the updated FTC Green Guides, backed by increased policing of claims, makes legal savvy particularly critical.

Greenwash3.  What will yield the most significant positive difference? The requirements underlying your efforts alike should be measurably better than the status quo and legal requirements, or they're effectively greenwash and won't differentiate your brand. Third-party standards can create accountability and a high bar that pushes you farther than you might go otherwise. Some companies see a need to go beyond existing frameworks and develop their own criteria.

4.  What's most appropriate for suppliers?
Producers will face significant demands, particularly small-scale farmers and others father down in the supply chain. It's essential that requirements are culturally appropriate and shaped by producer input, and that costs are reasonable. Some third-party standards exclude certain suppliers for reasons that aren't central to the issue at hand, such as size, location or business structure. Ensure your chosen route doesn't fare poorly in these areas.

Starbucks5.  What's most cost-effective?
Verification can often be done efficiently with direct business activities and first-tier vendors. Things become more resource-intensive when dealing with stratified, globalized supply chains, aspects that are farther removed in influence and geography, and multiple entities. Certifiers are well equipped for this but you can also combine in-house standards with external auditing, such as Starbucks C.A.F.E. Practices.