Carbon Labelling Guide

Similar to a nutritional label, a carbon label helps consumers understand the impact of the item they are purchasing or consuming. In the case of a carbon label, the label contains the carbon footprint of the product (a number, ex. 1.18 kg CO2) and helps consumers understand the impact of the product on the environment. The carbon footprint of the item is calculated by a consultant that is familiar with product carbon footprint quantification standards.

New to carbon labels? Learn more in our carbon labels overview!

Carbon dioxide is a greenhouse gas that is emitted when we burn fossil fuels like coal or natural gas. Carbon dioxide traps heat on our planet, much like how a greenhouse traps heat, thereby causing global temperatures to rise (among other side effects). Carbon footprint is a measure of the amount of carbon dioxide released when fossil fuels are burned, and has long been used as a measure of environmental impact. The lower the carbon footprint, the better.

What most people don’t realize is that everyone has a carbon footprint, not just governments and manufacturers. The banana you had for breakfast, the time you spent on the treadmill, or the hot shower you took after your workout, everything you do has a carbon footprint. It’s neither good nor bad, just a fact. If you don’t know your carbon footprint, try our 2 min quiz!

In this example, the total carbon footprint of a t-shirt by a particular brand is 3.3 kg of CO2. The figure, 3.3 kg CO2, is what we refer to as cradle to grave because it incorporates emissions for product use and disposable/end of life. Some carbon labels are cradle to gate which only include the emissions up until it’s sold, thereby emitting emissions from product use and disposal. We recommend carbon labels that include cradle to grave figures. Let’s walk through each time on the label:

• Materials: the carbon footprint, or emissions, of sourcing the cotton, dyes, labels, for the t-shirt. This also includes packaging materials.
• Manufacturing: the emissions released in the factory to manufacture and package the t-shirt. This could be the electricity needed to power the machines and even the lights in the building.
• Transportation: the emissions resulting from shipping the raw materials to the warehouse, and the finished product to the retailer or wholesaler.
• Product usage: the emissions from washing and drying or ironing the t-shirt (as an example)
• Disposal: these emissions depend on how the item is disposed. If it’s upcycled, this would refer to the emissions from the equipment that clean and repurpose the shirt. In many cases, it refers to the emissions related to the landfill.

‍Note: each manufacturer will likely have a different carbon footprint, even though the item may be the same (i.e. t-shirt). This is because each company has different suppliers and different raw materials. Each supplier has different emissions. Additionally, materials like packaging, etc, are typically different between brands and emissions from packaging are incorporated into the carbon footprint label. Carbon labels can apply to any product or service from apparel (t-shirt, shoes, pants, etc), cosmetics, a meal at a fast food restaurant, and more! A carbon lifecycle assessment is performed by a consultant and the data is then used in the carbon label.

Thanks to Foodsteps for sharing this data with us!

When consumers make purchasing decisions, they use many inputs from quality, price, style, and taste and nutritional information when it comes to food. As consumers increasingly understand the impacts of consumption on our planet, the trend is for consumers to find ways to better understand and ultimately lower their impact.

Carbon footprint labels help consumers quantify the environmental impact of their purchase decisions. Companies like Oatly, Allbirds, Pantys, and TENZING are great examples of hip brands that have started carbon labelling. Large organizations like Unilever have also pledged to carbon label all products.

We’ve highlighted brands that already carbon label today! Note that we have identified 3 major types of labels:

• Graded: label includes some form of grade such as A, B, or C, or low, medium, high
• Footprint: label includes the numerical footprint value of the product
• Footprint with Details: label includes the numerical footprint value of the product with the breakdown of the footprint in the lifecycle (materials, production, transport, packaging, use, end of life, etc)

We’re glad you asked and we have a few good reasons!

1. Consumers are starting to care (a lot) about sustainability and impact! Carbon labels help consumers identify brands that are eco-minded, transparent, and don’t shy away from being accountable.
2. Consumers would like to measure their own impact! Carbon labels help consumers quantify their impact, just like nutrition labels help quantify food intake.
3. Brands that adopt carbon labelling are helping to create more transparency and accountability. Win-win!
4. Marketing buzz opportunity. This is a great way to drum up more eyes outside of a product launch or event!
5. Policies for carbon labelling are starting to emerge, getting ahead of the curve is a clever move!
   • Denmark: Denmark to Become First Country to Develop Climate Label for Food
   • France: French Parliament passes law to apply ‘carbon labels’ to garments
   • EU: The European Union is facing a high proliferation of ecolabels and the need for a standardized approach to product labeling is being brought forth through the Ecodesign and Energy Labeling Working Plan 2022-2024
   • Germany: Oatly, the Swedish oat milk producer has been at the very forefront of this regulatory drive, despite the government rejecting the petition. Read more about it here.
   • Ireland: pushed forth the Carbon Footprint Labeling bill in 2021