ESG in Labels: What Data Should Businesses Have Before Communicating?
ESG (Environmental, Social, Governance) is no longer a story reserved for multinational corporations. Small and medium-sized enterprises in Vietnam, particularly suppliers within global supply chains, are facing growing demands for ESG reporting from customers, investors, and regulatory bodies. In that context, ESG in labels is not a distant topic: labels are part of packaging, and packaging is one of the easiest categories to measure and improve in a manufacturing enterprise’s ESG report.
However, to communicate ESG responsibly and avoid the risk of greenwashing, businesses need data—not vague intentions or sweeping commitments. Below are the specific types of data companies should collect before making any claims about the sustainability of their labels.
Essential ESG Data for Labels
1. Carbon footprint of labels (per 1,000 or 1 million labels): Includes emissions from raw materials (paper, film, adhesive, ink), production (energy consumed at the printing facility), transportation (from factory to customer’s warehouse), and end-of-life disposal. This data is typically provided by material manufacturers or calculated using LCA (Life Cycle Assessment) tools.
2. Recycled content (%): If using recycled paper or PCR film, documentation from the material supplier must be obtained to confirm the exact recycled content. “Recycled paper” without a specific figure is a weak claim that can easily be challenged.
3. Third-party certification: FSC, PEFC (for paper), GRS (Global Recycled Standard, for PCR film), OK Compost (for biodegradable labels). This is the strongest and most difficult evidence to refute.
4. Actual recyclability: It’s not enough for a product to be “technically recyclable”—you must verify that the recycling infrastructure in your target market can genuinely process it. A label that claims recyclability in theory but ends up discarded because no suitable recycling facility exists would be viewed as greenwashing.
5. Data on labor conditions in the supply chain: The Social aspect of ESG is often overlooked when it comes to labels, but is gaining increasing attention. Do material suppliers and printers comply with labor laws? Do they have occupational safety policies? Certifications such as SA8000, SMETA, or BSCI may be required.
How to Present ESG Data on Labels Transparently
The most important principle: only make claims that are backed by data. “Our labels are eco-friendly” is a claim with no value without specific data to support it. Instead: “Our labels use 70% FSC Mix paper, reducing carbon footprint by 25% compared to conventional virgin paper (per the material supplier’s LCA report, available upon request).” Specificity and the willingness to provide source data are the best ways to build trust and mitigate legal risk. Hirich helps businesses collect and organize ESG data related to labels from a manufacturer’s perspective, providing information on materials, production processes, and certifications so businesses can confidently integrate them into their overall ESG reporting.
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