What works?

Effectiveness of product labelling schemes

What works?

Many consumer product labels in Australia claim environmental benefits and/or pro-social outcomes (i.e. fair trade labels, energy rating program). Our aim with this study was to understand whether such labelling schemes are effective in changing behaviour and the extent to which they can be used to promote and increase producer and consumer adoption of circular economy products and services.

Key activities

To capture different perspectives on the problem, this project involved:

  1. A rapid evidence review on the effectiveness of labelling schemes around the world.
  2. Insights from the review were translated into an experimental online survey to test consumer interest in circular products and whether CE labelling schemes could be effective in an Australian context.
  3. Development of online tool.

In this video, the research stream leader, Dr Celine Klemm, gives a short summary of the research and provides answers to some of the most frequently asked questions about the trials.

Process and insights

In conducting this research, we followed The BehaviourWorks Method to gather evidence on the behaviour change approaches most likely to work.
(See a brief visual summary of the BehaviourWorks Method or a more extensive explanation.)

A step-by-step guide of how we followed The BehaviourWorks Method


Step 1 - Rapid Review

Reviews

In response to jurisdictions across Australia, and globally, exploring Circular Economy (CE) policies, the BWA Waste and Circular Economy Collaboration conducted a rapid evidence review on the potential role of eco-labels in supporting the future implementation of policies that support a transition to CE. Our research aims to inform policy dialogue and identify relevant behavioural public policy experiments.

In conducting our rapid evidence review, we asked ourselves:

"What is the effectiveness of product labelling schemes targeting Circular Economy outcomes on behaviour and practice?"

Findings

Our studies mainly focussed on consumer purchases, where we noticed a number of consistent themes, including:

  • trust
  • knowledge and awareness
  • consumer preferences
  • values
  • price
  • habits.

Download the Rapid Review

2 page summary of the review

For readers wanting a quick overview of the evidence review (5 minute read)

Policy highlights of the review

For readers writing a brief, a policy submission or wanting a summary of practical insights.

Full report of the review

For readers needing all the technical detail, including the full methodology.

Step 2 - Trials/workshops

Workshop summary

Firstly, we found an evidence-informed approach for fostering business innovation from the Netherlands. Called 'Circular Strategies' (created by a team of researchers from Delft University of Technology) it addresses several of the 'soft' cultural barriers explained above.

To understand how we can help businesses in Australia adopt CE practices, we adapted and tested this approach with groups of stakeholders from one industry in Australia to allow us to investigate if fostering collaboration between stakeholders can promote CE adoption in Australia.

To better understand Circular Strategies and the research conducted by Delft University of Technology, click HERE.

Findings

Our initial workshops conducted with the textile, clothing and footwear ecosystem provided positive outcomes in the uptake of business circularity by encouraging collaboration.  These included:

  • an established foundation of skills, knowledge and networks to develop a circular economy within their sector
  • increased trust between the various stakeholders and industries within their sector
  • the development of initial discussions and ideas progressing the sector towards a circular economy.

Nonetheless, we found that an attempt for scale-up and dissemination of the full facilitated workshops series may not be effective for every organisation. Thus, we suggest future research for business innovation consider train-the-trainer and knowledge translation activities as more viable for large-scale dissemination.

Business barriers trial infographic
Business barriers trial initial report

Learn about and use an online version of the Circularity Deck

As part of our workshop process, attendees used an adapted version of the Circularity Deck, developed by Circular Strategies.

The Circularity Deck is a deck of cards that introduce principles of the circular economy and help people within an organisation, or potential collaborators from across an industry / sector ecosystem, to learn about the circular economy, identify shared circular challenges, and explore future innovations on which they could collaborate.

Each card includes

  1. an innovation or change to a product, business model, or ecosystem;
  2. that is linked to principles of circular economy: slowing, closing, narrowing, regenerating, and informing material and energy loops; and
  3. a specific example of where a group or business experimented with that innovation

The Circularity Deck is based on published research (Konietzko et al., 2020), and recently, the Circular Strategies team has released a freely-available online version of the Deck for anyone to use.

Access the deck and watch a detailed tutorial at circularitydeck.com

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