IO1 Module

“Effective and sustainable

product labelling”
by Ludor Engineering
Table of Contents
Effective and sustainable product labelling ............................................................................................. 2
Introduction ........................................................................................................................................ 2
Product labelling in the frame of Circular Economy ............................................................................... 3
Product labelling: definitions and characteristics ............................................................................... 3
The importance of product labelling .................................................................................................. 5
The role of product labelling in the circular economy ........................................................................ 6
Product labelling schemes for the circular economy.......................................................................... 8
The customers’ response to product labelling.................................................................................... 9
General rules for products labelling.................................................................................................. 11
Guidelines for effective product labelling......................................................................................... 12
EU product labelling requirements ................................................................................................... 14
Labelling requirements in other countries ....................................................................................... 16
Circular economy innovation and the product labelling ....................................................................... 17
Circular economy innovation ............................................................................................................ 17
Innovation in product labelling ......................................................................................................... 18
Smart label technology ..................................................................................................................... 20
Sustainability labelling ...................................................................................................................... 22
Ecolabels ........................................................................................................................................... 24
Case studies ........................................................................................................................................... 26
Case study no. 1: R-CREATE, circular packaging solution ................................................................. 26
Case study no. 2: Mimica - smart labels to reduce food waste ........................................................ 28
Case study no. 3: traceless materials, a Circular Bio-Economy start-up........................................... 31
References ............................................................................................................................................. 34
Quiz........................................................................................................................................................ 36
Conclusion ............................................................................................................................................. 38

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 Effective and sustainable product
labelling
Introduction
The module “Effective and sustainable product labelling” discusses various aspects of product
labelling in the context of Circular Economy, including the role, the importance, the impacts, and the
applicable rules and regulations. One section is dedicated to Circular Economy innovation relevant to
product labelling such as sustainability labelling, smart labels, and ecolabels. Finally, the module also
includes three case studies of start-ups that applies circular economy principles in the fields of
labelling, packaging and materials in order to solve some stringent sustainability issues.

By the end of this module, you will learn:

• what are the functions of product labelling,

• what are the characteristics of product labels,
• how to manage the product labelling process for new products,
• how to use product labelling to promote the sustainability of your company,
• where can you find information about product labelling schemes and standards,
• which are the rules and regulations for products’ labelling,
• how to implement effective product labelling,
• how to innovate your product labelling,
• which are the new technologies relevant for product labelling,
• some successful examples of start-ups applying circular economy principles.

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Product labelling in the frame of Circular Economy

Product labelling: definitions and characteristics

Product labelling (PL) is the most direct mean of communication for manufacturers to provide
consumers or other users with vital information, enabling product identification. It’s a general term
referring to printed information that is bonded to the product to identify it, or to a container to
identify its contents. It can be a piece of material or the information directly written on a product.

Product labels have several functions:

• to provide essential, often required, information about the product, its contents and its use,
• to promote the recognition of product,
• to advertise the product and to assist promotion of products,
• to help classify or grade the product according to different categories in the market,
• to ensure the compliance with the law.

Generally, the product label includes product name, characteristics, instructions for use, graphics and
logos, certification marking, safety instructions, storage conditions and disposal information. A good
product label must:

• provide basic information: brand name, price, standard certification, expiry date for food
products, manufacturer’s name and address,
• provide details of the content or ingredients, weight, volume, measurements, etc.,
• include instructions for use, if necessary,
• include warnings and contraindications, if applicable,
• be visible and easy to read.

A critical purpose of PL is to inform about different characteristics of the product, in order to protect
the consumer’s health and interest. A well labelled product significantly decreases the liability of the
manufacturer. So, it is in the best interests of both consumers and manufacturers that PL is
complying with the applicable standards and regulations. In any case, product labels must comply
with the legal obligations.

There are two main types of product labelling:

• mandatory - certain information related to products such as food, drugs, toys, etc. must be
included by law,
• voluntary - information included as the manufacturer feels it may be useful for the consumer
(for example “Suitable for vegans”) and it can be, in some cases, partly regulated.

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 Source: https://commons.wikimedia.org

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The importance of product labelling
PL is an important part of all products, being a very effective communication mean and a key
feature in marketing. It plays a vital role in increasing brand visibility and brand loyalty, and can
help consumers to decide on buying the product. The product label is also the first point of
communication after the sale, helping customers use, handle and dispose the products correctly.

PL has important effects on many aspects of a business. Proper labelling is required for product
efficient handling throughout the entire supply chain, for streamlining business activities and for
simplifying business-to-business trade. Using common standards to identify and track products and
complying with relevant product safety requirements are prerequisites for a good cooperation and
effective exchange of product information between trading partners.

A correct PL provides traceability for products throughout the supply chain and improves the
compliance management of recalled products. These can be traced back from the customers through
the manufacturing, shipment, delivery, and raw material purchasing process such that the supplies of
the original raw material can be identified. Traceability is useful for improving quality and recognizing
the source of a problem or other issue.

Proper PL ensures compliance with relevant laws, policies, and regulations. If the information
provided on the product label is not sufficient or not in compliance with the law, the manufacturer
can face serious consequences in terms of reputation, penalties, costs, etc. Missing or wrong
information, safety instructions or use instructions can put customers in danger and have a serious
impact on the future of the manufacturer.

Start-up companies must be extremely careful in order to compensate their limited experience and
little resources. Any of their products must be appropriately labelled. A good practice is to
collaborate with experts in PL and other relevant fields.

Products’ labels can include additional information which act as a differentiation factor in order to
gain a competitive advantage (e.g., compliance with globally recognised certification markings or
promotional details).

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The role of product labelling in the circular economy
PL can facilitate the transition to the circular economy. In addition to educating the consumers and
companies, it plays an important role in encouraging more sustainable use of resources, increased
recycling and reuse, energy savings, etc.

The European Commission has adopted the new Circular Economy Action Plan in March 2020, one of
the main building blocks of the European Green Deal, Europe’s agenda for sustainable growth. It is an
ambitious plan to help European businesses and consumers in the transition to a circular economy
and announces initiatives along the entire life cycle of products. PL is one of the methods that will be
used in order to reach the EU Green Deal’s objectives [1].

The EU actions will bring out maximum value and use of all raw materials, products and waste,
promoting energy, savings and reducing greenhouse gas emissions. Eco-labels for products, such as
EU Ecolabel, are very helpful in the achievement of these objectives. They can give consumers the
guarantee that products comply with environmental quality requirements.

According to a study [2] conducted on 800 respondents in the United Kingdom, more “circular”
products are almost always preferred over products with otherwise identical attributes. It was shown
that applying a label indicating a level of circularity on the products like mobile phones and robot
vacuum cleaners could be a profitable strategy for manufacturers.

Labelling could increase customer confidence of circular products and provide a competitive
advantage for companies. In addition, some studies [3] suggest that certain customers are willing to
pay more for products with labels signalling social and environmental benefits. However, companies
and start-uppers shall be aware about other aspects that may negatively affect their business:

• such a labelling system could increase the costs for company [4],
• customers are willing to pay relatively less for reused, refurbished, or recycled products [5],
• shifting production toward more circular products can involve substantial uncertainties,
including profit loss [6].

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 Source: https://ec.europa.eu/environment/ecolabel

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Product labelling schemes for the circular economy
Environmental labels and information schemes (ELIS) have been used since the 1970s in various
scopes, sizes and natures. Today, there are a large number of ecolabels, claims, declarations and
other modes of transmitting information on the environmental characteristics of products [7]. More
than 455 eco-label programs in 199 countries and 25 industry sectors are included in Ecolabel Index
directory [8].

The International Organization for Standardization (ISO) has created standards for labelling practices
dealing with environmental labels and declarations. ISO separates environmental labelling schemes
into three types [9]:

• Type I (ISO 14024) is the standard for ecolabels, defined as voluntary labelling schemes that
differentiate some of the best performing products and services according to multiple
criteria, which are based on transparent standards for environmental preferability. A
qualified organization verifies and awards a license that authorizes the use of ecolabel on
products.
• Type II (ISO 14021) labels are claims based on self-declarations by manufacturers or retailers,
that describe a product or service following general guiding principles. The claims have to be
verifiable, and use accurate and non-misleading information. ISO 14021 provides guidance
for proper use of symbols and terms [10].
• Type III (ISO/TR 14025) focuses on environmental declarations, providing quantified product
information based on life cycle impacts. The declarations must be based on procedures and
results from a quantified life cycle assessment compliant with ISO 14040 standards.

However, there are many ELIS that are not covered by these three types. Some very popular
environmental labelling schemes include third-party audit, but are not based on life-cycle or multi-
criteria (e.g., organic certified products and the energy star label). Also excluded from this typology
are third-party audited quantitative reporting schemes that are not life-cycle based [7].

Nowadays there are ELIS for almost any kind of products, for services and even for buildings.

Source: https://hellotera.com/

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The customers’ response to product labelling
As already discussed, PL can have a great impact on customers, on multiple levels.

Currently, as climate change is an increasingly discussed topic in the media and its effects become
more evident, there is an increase in the demand for products that customers perceive to be
environmentally friendly. One way to communicate this environmentally friendliness is through
environmental labels (also known as eco-labels or green labels). These provide information about a
product in terms of its overall environmental benefits, such as the packaging recyclability or the
absence of harmful ingredients, and can positively influence consumer choices. Thanks to
transparent ecological criteria, consumers can differentiate products, compare them in terms of
sustainability and make conscious choices. Consequently, the demand for eco-labelled products is
increasing and this is a fact that start-ups and companies should take into account.

Many consumers are interested and willing to pay a premium for sustainability-related
characteristics and they do purchase such products. Environmental labels are considered important
for achieving a purchase outcome and are seen as a central aspect that will influence the purchasing
patterns of consumers. They act as a guide for consumers to choose environmentally friendly
products so companies can use this to characterize their products, position them and communicate
an environmentally friendly message.

There was a significant change in sustainability consumption in the last years. Some studies reveal
that the consumers’ willingness to pay more for eco-labelled products is related to their confidence
in the organisation which certifies the label, their levels of education and environmental
involvement, and the type of additional information provided. These are some of the parameters
that a start-up should consider in its strategy for PL.

Today is a great time to be a “green” start-up, one that acts in a way which minimizes damage to the
environment. With a proper PL, a positive customer response to the company’s offer can be easily
secured.

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 Photo by Melanie Lim on Unsplash

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General rules for products labelling
Product labelling is the written information provided on the packages, and depends on the relevant
national and international requirements. It must comply with some mandatory rules, which may vary
from country to country and for different types of products. In addition, the manufacturer may find
desirably to use some voluntary labelling, which may be also regulated.

Each product must be labelled taking into account the specific requirements for the market where it
is sold. However, some general rules to be followed when designing a product label can be identified:

• product identity must be stated,

• net weight must be declared,
• the list ingredients used in the end product must be included,
• safety instructions must be provided,
• adequate information regarding the manufacturer and its contact details must be provided,
• certification marking, if required, must be displayed,
• brand logo should be included,
• the information provided shall not be false, misleading or deceptive.

Depending on the type of product and of the country where it is put on the market, product labelling
may also need to comply with other rules, such as the provision of:

• directions of use,
• appropriate warnings,
• the label easy to read and visible,
• a list of the allergens contained by the product,
• nutrition facts,
• country of origin,
• the date of minimum durability,
• any special conditions for keeping or use,
• safety information for potentially dangerous products.

There are special rules for some products, such as food, toys or medicine.

It is the responsibility of the manufacturer to ensure that the product label comply with the legal
requirements and offers all the information needed by the customers.

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Guidelines for effective product labelling
Effective product labelling is not just about providing all the technical and legal requirements on the
packaging, but is also about giving consumers the confidence to choose and use the product
correctly. In addition, PL can be a differentiation factor, could influence the consumer’s perception of
the brand and even affect the purchasing decision.

The effectiveness of a product label design can be improved by following some guidelines:

• use the psychology of colour [11],

• choose the most appropriate label shape for the product,
• use creative barcodes or QR-codes,
• carefully select the label material and finish,
• include contact information,
• use the product label in conjunction with social media.

Using the product label in conjunction with social media is a great way to boost its effectiveness,
especially for small companies and start-ups. The start-uppers should definitely consider creating a
coherent marketing strategy that enables synergy between their products labelling and the
appropriate social media platforms.

Product labelling can be made more effective by taking advantage on the new technologies, such as
Cloud Computing and the Internet of Things, that ensures better communication and connection of
the different actors of the supply chain, improving the traceability and security. Other technologies,
such as Augmented Reality, allow to increase the information contained in the label and to improve
the communication with customers.

Launching a new product can be a difficult time for a start-up, with many critical activities to be
completed and involves significant risks. Product labelling is one of the important things to be taken
into consideration during the product design phase.

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 Source: https://thelogocompany.net

Source: www.ludoreng.com

Source: www.onlinelabels.com/

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EU product labelling requirements
Mandatory labels

Many products can be sold in the EU only if they bear the CE marking, no matter where they were
manufactured. CE marking indicates that a product has been evaluated by the manufacturer and
considered to meet EU requirements for safety, health and environmental protection. It is only
obligatory for products for which EU specifications exist and require the affixing of CE marking. Some
products are subject to several EU requirements at the same time and the manufacturer must make
sure that its product complies with all the relevant requirements. Plenty of information about CE
marking is available on EU websites [12].

For certain product groups, an Energy Label must be clearly displayed on each product. Energy labels
rank appliances and other product categories on a scale from A to G according to how much energy
they consume.

Most electrical and electronic equipment sold in the EU must bear WEEE label which indicates that
the product must be sent to separate collection facilities for recovery and recycling.

Most footwear sold in the EU must bear a Footwear Label that informs customers what they are
made of.

Clothes and other textile products sold in the EU are required to carry a Textile Label. This must
clearly identify the composition of all textile fibres used and indicate any non-textile parts of animal
origin.

Voluntary labels

The EU Ecolabel can be affixed to various products that are environmentally friendly and respect
rigorous ecological criteria.

The e-mark shows that a product complies with EU rules regarding the indication of the volume or
weight and the measuring methods that must be used by companies selling pre-packaged products.

It is crucial for the start-uppers to check if any mandatory label is applicable to the products they
intend to sell in EU and to observe the applicable rules.

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 Source: https://ec.europa.eu

Source: https://europa.eu

Source: https://ec.europa.eu

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Labelling requirements in other countries
International regulations are becoming increasingly complex, more and more countries have difficult
labelling requirements that are specific to their country. Each country has its own product labelling
rules specifying key requirements, such as what language a label is written in, and what product
components need to be listed. The general rules already described in this module are usually
applicable.

Some labelling requirements apply to all product categories or to a wide range of products. For
example, all products sold in the USA must be labelled with the country of origin (i.e., Made in
Romania) and all products sold in countries like China and Brazil must be marked in the national
language. Other labelling requirements apply to specific products, such as toys, electronics and
textiles, and each of these has its own set of labelling requirements.

As the incorrectly labelled products cannot be legally placed on the market, it is crucial that the
manufacturer observe all the PL requirements of the country where its product is going to be sold.
For example, the USA customs have the right to return cargo that are not properly labelled.

Many products imported to USA, Canada, Australia and New Zealand are required to comply with
certain labelling requirements. Among these, we can mention:

• toys and children’s products,

• clothing, textile and accessories,
• food,
• pharmaceutical drugs, etc.

In Japan, generally, labelling for most imported products is not required at the customs clearance
stage, but at the point of sale. Many products imported to China must receive a China Compulsory
Certification (CCC) marking before sale.

The easiest way for a start-up to ensure that a given product meets all applicable requirements in a
certain country and is properly labelled, is to work with a local agent or importer.

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Circular economy innovation and the product labelling

Circular economy innovation

The transition to a circular economy requires innovations in the way industries produce, consumers
use and policy makers legislate [13]. Circular economy is intrinsically bound to eco-innovations in the
way societies legislate, produce, and consume [14] and these can be defined as “the production,
application or exploitation of a good, service, production process, organizational structure, or
management or business method that is novel to the firm or user and which results, throughout its
life cycle, in a reduction of environmental risk, pollution and the negative impacts of resource use
(including energy use) compared to relevant alternatives” [15].

Innovation in a company generally refers to changing or creating more effective processes and
products, and can increase the probability of a business succeeding. Companies need eco-
innovations in order to be competitive, to comply with the legal requirements, to meet the
customers demand for sustainable products, etc.

All over the world, the need for greater sustainability presents opportunities for innovators by
rewarding a competitive edge to those adopting more sustainable practices and to those offering
more sustainable products to their customers [16]. The eco-innovations range from stepwise
improvement of an existing design or process to entirely new business models and concern any
conceivable forms of innovation. According to V. Prieto‐Sandoval, C. Jaca and M. Ormaza [13], eight
types of such eco-innovations can be identified:

• Business model innovations,

• Network innovations - collaborating with other companies,
• Organizational structure innovations,
• Process innovations - the way of making products,
• Product innovations - the quality and functionality of the products,
• Service innovations,
• Market innovations - communication channels with the customer, brand values, product
positioning,
• Customer engagement innovations - focus on customer experiences, and meeting their
needs.

The transition to a circular economy can certainly be facilitated by eco-innovation, in all its
imaginable forms, including innovation of product labelling.

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Innovation in product labelling
The increasing demand for improved product safety and sustainability led to significant innovation in
PL. Innovative labels are able to monitor temperature and quality, to offer product safety assurance,
to prevent counterfeit, and many more. Used in conjunction with technologies such as Internet of
Things, Cloud Computing, and Mobile technologies, these labels can provide track and trace
capabilities and help locating products as they move through the supply chain.

Good traceability allows a better control of the product quality and the product lifetime along the
whole supply chain. For example, the temperature-sensing labels ensure that products such as
vaccines, pharmaceutical products or perishable foods have been stored at the required temperature
and remain safe to use. They offer continuous monitoring and record the highest temperature
reached by the product. The most used technologies for traceability are the RFID (Radio Frequency
Identification), the NFC (Near Field Communication) and the QR codes.

Fighting counterfeiting in various markets is more efficient thanks to PL innovation. For example,
BASF developed a new technology that incorporates a special water mark into the product label that
is invisible indoors but clearly visible in sunlight, thus helping customers and retailers to identify
genuine products. Product labels combining QR code with additional information printed with an
invisible photochromatic ink are also used for counterfeit prevention and brand protection in various
industries.

Augmented Reality (AR) labels can dramatically improve the user experience and give manufacturers
new ways to engage with customers. When viewers point their smartphone camera at the product's
label, they can unlock a whole new world of interaction and animation, including videos, 2D/3D
content, social media sharing options, etc.

The sustainability is an important aspect for the innovation in product labelling and most of the
technological advances provide also improvements related to the environment. These improvements
deal with materials, practices and design ideas.

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 Source: www.bodyscience.com.au

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Smart label technology
Smart labels are product labels that incorporates technology, such as RFID tags, QR codes, near field
communication (NFC), etc. that extends their functionality and contents beyond traditional print
methods. They rely on an interaction with a consumer device (e.g., smartphone) to facilitate an
interaction. A simple example is a product label imprinted with a QR code that can be scanned by a
mobile device and be linked to a web page or prompt an application download.

Smart labels can have different properties and functions, from a simple barcode readable by a
smartphone that allows consumer to access additional information to a visible colour change that
indicates modifications in the product surroundings. There are several main types of smart label:

• Electronic Article Surveillance (EAS) - do not contain data and are used for theft detection in
shops and libraries,
• Near Field Communication (NFC) Tags – contain data and are used for contactless exchange
of data over short distances,
• Radio Frequency Identification (RFID) - transmits digital data when interrogated from a
nearby RFID reader device and are used in countless applications (e.g., product identification
and tracking, speeding up the checkout process in shops and theft prevention),
• Smart labels for brand enhancement – used to add useful or attractive features to a product
or its packaging,
• Sensing labels - used to detect events such as overheating, shock, tilt, vibration, etc.

Many times, one smart label can perform two or more functions, for example RFID and temperature
sensing.

Advanced technologies, such as Internet of Things, Augmented Reality and Blockchain, are used to
make product labels even smarter. For example, Bumble Bee allows its customers to trace their
seafood and verify it has been sustainably caught thanks to a smart label powered by blockchain
technology [17]. In other applications, NFC-enabled labels can detect and tell consumers whether a
container has been opened or not. As already discussed, AR apps triggered by the product label
offers new ways for customer engagement and improving user experience.

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 Source: www.ift.org/

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Sustainability labelling
Sustainable development meets the needs of the present without compromising the ability of future
generations to meet their own needs [18]. Sustainability is a holistic approach based on three pillars,
which must be considered together to find lasting prosperity:

• social - aims to improve social equality,

• economic - aims to ensure a business remains profitable throughout its operation,
• environmental - aims to improve human welfare through the protection of natural capital.

Over the last decades, companies have increasingly adopted sustainability standards as instruments
to demonstrate their commitment to sustainable practices and to communicate this to the
customers, through product labelling.

Sustainability standards and certifications are voluntary guidelines used to ensure that a product is
produced, processed, transported or sold in accordance with certain sustainability criteria, such as
worker health and safety measures, soil conservation and minimum price paid to farmers.

There are over 400 sustainability standards all over the world [19] and they cover many products,
including agricultural products, textiles, electronic devices, wood and paper products, cosmetics and
detergents. These standards can be set by governments, NGOs, and companies or through
multistakeholder initiatives.

The implementation sustainability standards and sustainability certification could be difficult and
costly for SMEs, including start-ups [20]. But, having a sustainability certification allows SMEs to
differentiate from the competition, to increase sales and to thrive in the current market. For some
small companies, especially suppliers of large companies, the certification may be mandatory.

In addition, SMEs can include sustainability claims on their product labels. The sustainability claims
are messages used to set apart and promote a product with reference to one or more of the three
areas of sustainability. However, they should follow some rules and regulations [21].

Product labels can help customers to make more sustainable purchasing decisions, thus being an
important instrument for promoting sustainability.

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 Three Pillars of Sustainability. Source: www.wikimedia.org

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Ecolabels
Ecolabelling is a voluntary method of environmental performance certification and labelling, widely
used around the world. An ecolabel identifies products proven to be environmentally preferable
within a specific category. Whereas sustainability certifications apply to companies, ecolabels have
the same function with respect to products.

Ecolabels, also known as environmental or green labels, are means for a company to show that it is
making efforts to reduce its environmental impact. This is communicated to the customer by the
presence of the ecolabel logo on a product, as a proof of the product manufacturer compliance to
the ecolabel criteria.

Ecolabelling enables the companies to harness consumer demand for environmentally friendly
goods. It can also motivate them to improve the environmental performance of their products, this
resulting in a reduced environmental impact.

There are a wide range of product labels claiming environmental benefits. The Ecolabel Index
includes 455 ecolabels from 199 countries, and 25 industry sectors (in August 2021) [8].

Ecolabels offer companies and start-ups the opportunity to signal to consumers which products are
more respectful to the natural environment than their substitutes. They can be a very good
marketing tool and can offer a competitive edge.

In the European context, the development of product ecolabelling is part of the Integrated Product
Policy approach [22]. EU Ecolabel is a voluntary label identifying products and services that have
reduced their environmental impact throughout their entire life cycle [23]. EU Ecolabel criteria
encourages manufacturers to design durable and easy to repair and recycle products, to promote
innovation and save resources. It can be a great choice for a start-up to use EU Ecolabel criteria for
guidance on eco-friendly best practices when developing their products.

SMEs and micro-enterprises planning to apply for EU Ecolabel are supported with information and
special discounts [24]. As the EU Ecolabel covers a wide range of product groups, many SMEs can
have their products eligible. Applying for a new product group proposal is also possible.

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 Source: https://ec.europa.eu/environment

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Case studies

Case study no. 1: R-CREATE, circular packaging solution

R-CREATE (www.r-create.ro/) is a Romanian start-up aiming at significantly reducing pollution and
waste using the principles of the Circular Economy. Their vision and mission are to introduce on the
Romanian market returnable, reusable and recyclable packaging solutions that can be used
effortlessly by retailers and consumers. R-CREATE is investing in a culture of sustainability through
education, innovation and collaboration. They developed the first waste-free solution for the
Romanian online buyers.

The challenge

The exponential growth of e-commerce led to a significant increase of packaging waste. According to
Eurostat, only 14% of the waste produced in Romania is recycled so most of the resulted packaging
waste will end in landfills, with negative consequences on environment but, also, with social and
economic impacts.

The solution

R-CREATE developed a reusable packaging solution for e-commerce that allows reducing trash
resulted from online orders. It consists in a series of steps:

• the products ordered online are packed in a special package,

• the parcel is handed over to a courier who deliver it to the customer,
• the customer opens the package and retrieves the products,
• the courier takes the packaging back,
• the packaging is reintroduced into the circuit.

The packaging is made from a durable material (polypropylene) and has a lifespan of up to 20 uses.
When packaging wear and tear is too severe, R-Create recycles it in collaboration with a recycling
company, and a new R-Create packaging is manufactured.

The start-up is working to this solution since 2019, when they won the price for the best idea in the
field of recycling at the ReUse Hub accelerator programme supported by Impact Hub Bucharest and
PepsiCo.

The solution was tested in 2020 in collaboration with important Romanian actors from online
commerce, recycling and courier service industry. In addition to the environmental benefits, the
solution cuts the packaging costs, eliminate the need of customers dealing with the packaging waste
and it’s a powerful customers retention tool. R-CREATE estimates that will eventually replace more
than five million disposable packaging with this solution.

Lessons learned

Using reusable packaging is a win-win solution as both sellers and customers can benefit from
reducing the waste and the packaging costs.

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 Source: https://www.r-create.ro/

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Case study no. 2: Mimica - smart labels to reduce food waste
Mimica (www.mimicalab.com/) is a UK based start-up that aims at making the food system more
sustainable by extending the shelf life of fresh food. Their first product, Mimica Touch, is a smart
label that helps reducing food waste by showing exactly when food spoils.

The challenge

Food waste has significant social, environmental and economic impacts so it is crucial to reduce it as
much as possible.

Current printed expiry dates for food are inaccurate and conservative estimates. The shelf life is
shortened to protect consumers in case of problems in the supply chain or in their homes. In reality,
the food can be perfectly safe after the expiry date indicated on the product label. It is estimated
that 60% of food wasted is still edible, so consumers relying on best before dates may discard
perfectly good food.

The solution

Mimica Touch is a tactile freshness indicator and food expiry label that accurately mimic the decay
rate of food using specifically designed bio-responsive gel. This gives a real-time indication of the
product’s freshness as is exposed to both the same conditions as the food and the off-gases emitted
from expiring food. Consequently, it prevents edible food from being thrown out, thus reducing food
waste. Mimica Touch also helps consumers to store food at the right temperature, therefore
extending its life. In addition, it offers an increase to profits and savings for all stakeholders.

The Mimica Touch smart label is available in either a flat label or a bottle-cap format and gives tactile
information. The consumers just run their fingers over it, and if the label feels solid and smooth it
means the food is perfectly edible. Alternatively, if the label is soft and bumpy it indicates that the
food is no longer safe to eat.

Right now, the smart label is used on juice, dairy and meat, but Mimica aims at creating accessible,
affordable freshness indicators for all types of perishable products, from food to pharmaceuticals.
Mimica had already piloted its solution with major UK companies from dairy, meat and juice
industries, and is planning to hit supermarket shelves soon.

Lessons learned

Smart labels can be successfully used to reduce food waste.

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 Source: www.mimicalab.com/

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 Source: www.mimicalab.com/

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Case study no. 3: traceless materials, a Circular Bio-Economy start-up
traceless materials GmbH (www.traceless.eu) is a circular bioeconomy start-up based in Germany. It
offers a holistically sustainable alternative to plastics and bioplastics that is fully compostable in
nature, contributing to solve the global plastic pollution.

The challenge

Global plastic pollution has become one of the most critical environmental issues and negatively
affect organisms, ecosystems, human wellbeing, and many socio-economic sectors. New materials
that can replace plastics without presenting their undesired properties are desperately needed in
order to reduce the accumulation of plastic waste.

The solution

traceless materials developed materials having the beneficial properties of plastics while being free
of hazardous additives or solvents and able to degrade under natural composting conditions. These
have the potential to make a significant contribution to solving global plastic pollution.

These novel materials are obtained through the transformation of agricultural industry residues using
an innovative patent pending technology and a circular economy approach. Although bio-based,
these materials do not compete with food production, so don’t require the change in land use.
Contrary to conventional (bio)plastics, they don’t need any harmful chemicals and have up to 87%
lower CO2 emissions.

The traceless materials come on various forms (a flexible film, a mouldable plastic and a sprayable
solution for coatings) and can replace plastics in a wide range of applications. The film has good
mechanical properties and can be casted, dyed, printed and heat-sealed. The hard plastic alternative
has good mechanical properties and can be extruded, injection moulded, printed, dyed and more.
The protective coating can be sprayed or spread, it is storage-stable and non-toxic.

The quality of traceless materials is competitive to conventional plastics and bioplastics. In addition,
when produced on an industrial scale, they are price competitive to conventional plastics. The start-
up plans to bring first products made of traceless materials to market in early 2022.

Lessons learned

There are practical solutions to the global plastic pollution problem, new bio-materials being one of
these.

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 Source: www.traceless.eu/

Source: www.traceless.eu/

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 Source: www.traceless.eu/

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References

[1] EUROPEAN COMMISSION, “A new Circular Economy Action Plan For a cleaner and more
competitive Europe,” Brussels, 2020.

[2] R. H. Boyer, A. D. Hunka, M. Linder, K. A. Whalen and S. Habibi, “Product Labels for the Circular
Economy: Are Customers Willing to Pay for Circular?,” Sustainable Production and
Consumption, vol. 27, pp. 61-71, 2021.

[3] S. M. Tully and R. S. Winer, “The Role of the Beneficiary in Willingness to Pay for Socially
Responsible Products: A Meta-Analysis,” Journal of Retailing, vol. 90, no. 2, pp. 255-274, 2014.

[4] I. Gåvertsson, L. Milios and C. Dalhammar, “Quality Labelling for Re-Used ICT Equipment to
Support Consumer Choice in the Circular Economy,” Journal of Consumer Policy, vol. 43, p. 353–
377, 2020.

[5] R. Harms and J. D. Linton, “Willingness to Pay for Eco-Certified Refurbished Products: The
Effects of Environmental Attitudes and Knowledge: WTP for Eco-Certified Refurbished
Products,” Journal of Industrial Ecology, vol. 20, no. 4, pp. 893-904, 2016.

[6] M. Linder and M. Williander, “Circular Business Model Innovation: Inherent Uncertainties:
Circular Business Model Innovation,” Business Strategy and the Environment, vol. 26, no. 2, pp.
182-196, 2017.

[7] G. Gruère, “A Characterisation of Environmental Labelling and Information Schemes,” OECD,

2013.

[8] “Ecolabel Index,” [Online]. Available: http://www.ecolabelindex.com/. [Accessed June 2021].

[9] ISO, ISO 14020, Environmental labels and declarations — General principles, 2000.

[10] ISO, ISO 14021, Environmental labels and declarations — Self-declared environmental claims
(Type II environmental labelling), 2016.

[11] “Psychology of Color in Logo Design,” The Logo Company, [Online]. Available:
https://thelogocompany.net/psychology-of-color-in-logo-design/. [Accessed 2021].

[12] “CE marking,” 2021. [Online]. Available: https://europa.eu/youreurope/business/product-

requirements/labels-markings/ce-marking/index_en.htm.

[13] V. Prieto‐Sandoval, C. Jaca and M. Ormaza, “Towards a consensus on the circular economy,”
Journal of Cleaner Production, vol. 179, pp. 605-615, 2018.

[14] V. Prieto‐Sandoval, C. Jaca and J. Santo, “Key strategies, resources, and capabilities for
implementing circular economy in industrial small and medium enterprises,” Corporate Social
Responsibility and Environmental Management, vol. 26, no. 6, p. 1473–1484, 2019.

[15] R. Kemp and P. Pearson, “Final report MEI project about measuring eco-innovation,” UM Merit,
Maastricht, 2007.

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[16] A. Luqmani, M. Leach and J. David, “Factors behind sustainable business innovation: The case of
a global carpet manufacturing company,” Environmental Innovation and Societal Transitions,
vol. 24, pp. 94-105, 2017.

[17] T. Burke, “How Blockchain Is Changing the Supply Chain Conversation,” Food Technology, vol.
73, no. 6, pp. 36-44, 2019.

[18] “Our Common Future: Report of the World Commission on Environment and Development,”
1987. [Online]. Available: http://www.un-documents.net/wced-ocf.htm. [Accessed August
2021].

[19] “Market Coverage,” [Online]. Available: https://www.iisd.org/ssi/market-coverage/. [Accessed

August 2021].

[20] C. Sommer, “Drivers and Constraints for Adopting Sustainability Standards in Small and
Medium-sized Enterprises (SMEs),” German Development Institute, 2017.

[21] ISEAL Alliance, “Sustainability Claims - Good Practice Guide,” 2015.

[22] European Comission, “Integrated Product Policy (IPP),” 2021. [Online]. Available:
https://ec.europa.eu/environment/ipp/. [Accessed June 2021].

[23] “EU Ecolabel,” [Online]. Available: https://ec.europa.eu/environment/green-growth/tools-

instruments/index_en.htm#ecolabel. [Accessed August 2021].

[24] “EU Ecolabel for Businesses,” [Online]. Available:

https://ec.europa.eu/environment/ecolabel/eu-ecolabel-for-businesses.html. [Accessed
August 2021].

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Quiz

1. Which of the following does not represent a function of product labels:

a. to provide essential information about the product, its contents and its use
b. to ensure the compliance with the law
c. to prevent anticompetitive practices
d. to help classify or grade the product according to different categories in the market

2. WEEE label indicates that:

a. the product doesn't contain parts of animal origin

b. the product must be sent to separate collection facilities for recovery and recycling
c. the product respects rigorous ecological criteria
d. the product complies with EU rules regarding the indication of the volume or weight and the
measuring methods

3. The acronym NFC stands for:

a. Network Fast Connection

b. Near Field Calculator
c. Net Form Control
d. Near Field Communication

4. Which of the following are NOT possible negative aspects of eco-labelling for a start-up?

a. increased costs
b. customers loss, as some of them are willing to pay relatively less for reused, refurbished, or
recycled products
c. maximum use of raw materials
d. profit loss when shifting production toward more circular products

5. What is ecolabelling?

a. a voluntary method of environmental performance certification and labelling

b. a mandatory labelling method applied for footwear sold in the EU
c. the type of product labelling mandatory for ecological products
d. a voluntary method of product labelling used only for home appliances

6. Which of the following are mandatory labels in EU?

a. e-mark
b. EU Ecolabel
c. CE marking
d. CCC marking

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7. Which of the following are voluntary labels in EU?

a. e-mark
b. WEEE label
c. CE marking
d. Energy Label

8. Which of the following is not considered one of the 3 pillars of Sustainability?

a. social
b. cultural
c. economic
d. environmental

9. Which of the following is not a technology used for product traceability?

a. RFID
b. EAS
c. NFC
d. QR codes

10. Which of the following is not a Radio Frequency Identification (RFID) application?

a. product identification and tracking

b. speeding up the checkout process in shops
c. detect events such as overheating, shock, tilt, vibration, etc.
d. theft prevention

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Conclusion
Congratulations for completed the Module “Effective and sustainable product labelling” and
acknowledging that product labelling has an important role to play in promoting the Circular
Economy and the sustainability of your company.

You are now able to understand the product labelling role, importance and impact, as well as the
applicable rules and regulations. Moreover, you learned about the functions of product labelling, the
characteristics of product labels, how to manage the product labelling process for new products, how
to use product labelling to promote the sustainability of your company, where to find relevant
information, and how to implement and innovate product labelling. Finally, you are now aware of the
role Circular Economy plays in the product labelling and able to incorporate Circular Economy aspects
in your own enterprise.

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