In short:

  • Both consumers and investors flock to companies that care about the environment. But make sure you put your money where your mouth is, because they’ll also blacklist “greenwashers” who make false claims about their impact on the environment.
  • Green business certifications are a stellar way to win the approval of said consumers and investors. However, they’re not all created equal.
  • Prove your company’s green cred by choosing the appropriate certification for your industry. Read on for a complete rundown.

Getting a green business certification pays off. Consider that 62% of Australian consumers are willing to pay more for products that are environmentally sustainable and 53% of Singaporeans believe businesses have a responsibility to ensure their supply chain is free from damaging practices. A green business certification is a commitment that eco-conscious consumers will take into consideration when deciding what to purchase.

This growing demand has not gone unnoticed by investors, either. A green business certification can also help you secure green bonds, which fund projects that benefit the environment across energy, transportation, construction and other sectors. In fact, in Asia, green bond issuance has drastically increased due to demand in green projects and infrastructure. Fund managers are actively seeking companies that are looking to keep a healthy balance sheet while helping the environment.

Despite the growing demand from consumers and investors alike, there still isn’t a central governing agency in charge of regulating and certifying businesses’ green practices and claims across APAC. That has left the door open for some companies making false claims — aka greenwashing — though we are seeing regulatory movement to discourage false claims. False claims about environmental impact can potentially land any company in hot water with regulatory authorities. To learn more about your responsibilities when making environmental claims about your products of business, refer to your local consumer protection agency:

If your brand is seeking prove its impact in a legitimate way, respected certifications exist. Before moving forward, heed experts’ considerations and learn how to identify the most reputable green certifications.

What Does “Green” Even Mean?

Green business certifications are given to firms that adopt principles, policies and practices that improve quality of life for individuals and benefit the planet. For consumers, they can provide assurance that a company is delivering on its promise of following green business practices and being environmentally and socially responsible. For companies, they can help make a service or product more competitive. However, the lack of oversight from a central governing agency means that companies can create their own definitions to back claims that a product is organic, natural or carbon-neutral.

That opens up a big grey area. For example, the Australian Department of Agriculture doesn’t have a standard for organic certification. Instead, companies choose to use private organisations to achieve organic labelling. For a product to be legally described as organic, in Australia, organic certification is not legally required. Since there is no legal definition of the term, regardless of the label many could be anything but (organic).

This has led to confusion and distrust, with 80% of consumers distrusting ‘natural’ or other ambiguous claims of food packaging. Source.

An apple, sure. A granola bar with 23 ingredients? Not so much.

👉 Consumers are sceptical of companies that call themselves “natural,” and rightly so: There’s no universal, legal definition of a “natural” or “green” business.

A “green” business is any that uses practices to improve quality of life for individuals and benefit the planet.

Why You Should Choose a Third-party Certification

In the absence of universal government regulation, many private organisations have sprung up to fill that green certification void. Typically, they might focus on a particular product or sector – for example, organic food or green supply chain. Other times, they may focus on a different definition of sustainable – some might be focused on reducing CO2 emissions, while others might be focused on ensuring farmers in developing countries are working under fair conditions.

Which certification you adopt depends on your product or service, but look for third-party organisations that examine a business’s impact across all critical areas and not in a silo. Granting organisations that offer guidance around implementing green initiatives tied to the certification and give businesses access to a network of specialists they wouldn’t have otherwise set you up for success.

And by getting certified, your business joins a network of like-minded companies. There is power — and market awareness — in numbers.

👉 In the absence of universal “green” standards, seek certification from a respected third-party organisation.

What Is Green LEED Certification?

Residential LEEDs the way

LEED (Leadership in Energy and Environmental Design) is the most widely recognised green building rating system in the world, with certifications in 165 countries and territories and more than 90,000 compliant projects as of 2019.

It’s a gold standard for how to build consumer awareness and trust and deliver real cost and environmental benefits.

In 2020, the industrial and residential and commercial sectors accounted for about 50% of total APAC. energy consumption.

Adopting green building strategies can reduce environmental impact and improve performance at any stage of the building lifecycle, from design and construction through operations and renovations.

In addition to providing a globally recognised sustainability achievement, LEED certified buildings deliver substantial cost savings with reductions of 34% in CO2 emissions, 25% in energy consumption, 11% in water use and diversion of more than 80 million tons of waste from landfills.

Further, according to a report by CBRE, the growth of green buildings in APAC region is being driven by government incentives and regulations, costs savings for landlords and tenants and growing emphasis on corporate social responsibility.

👉 LEED is the most widely used green building rating system in the world. Other industries, like cosmetics, don’t have such reliable third-party certification systems.

LEED is one of the world’s most reliable, well-known and used green business certifications.

So How Do You Choose Which Certification to Pursue?

When choosing a green business certification for your company, Karen Yarussi-King, president of Global Regulatory Associates, suggests working with an organisation that checks off all these boxes:

  • Recognisable and relevant to your audience.
  • Managed by a third-party organisation and avoids financial conflicts of interest; think a non-biased, nonprofit, industry association or government agency.
  • Has expert-developed and science-backed standards and guidelines.
  • Has a clear and transparent certification process.
  • Requires third-party testing or a comprehensive investigation.
  • Provides support to certified businesses, including expert guidance during and after the certification process.

Green business certification can offer many benefits; the key is selecting the most reputable certification that aligns with your business’s values and needs. The requirements, application process and costs vary widely. Some organisations certify the entire business operation, while others certify specific products.

For example, a B Corp certification applies to the entire business, and the application fee is calculated based on a business’s annual sales, ranging from $500 AUD for companies in Australia and New Zealand, with annual sales of $150,000 and below, to $50,000 and up for those with sales over $1 billion.

👉 Learn more about some of our favourite B-Corps in Australia & New Zealand in this blog from our ANZ General Manager

On the other hand, the Rainforest Alliance’s agriculture certification can apply to individual farms and groups of farms, and the costs associated with each are different. For companies that benefit from selling Alliance-certified foods, a royalty-based model applies to various crops, say a fraction of a cent per pound of green coffee or $42 per metric ton of crude coconut oil.

Although each certification has a unique application process (usually outlined on their websites⁠), you will likely need to:

  1. Submit proof that you meet the issuer’s standards and requirements.
  2. Undergo third-party testing, verification or inspections (which your company will pay for).

The renewal period also varies. Some recertify yearly (Green Product Certification, the Leaping Bunny) while others last longer. (B Corp lasts two years; LEED lasts three years)

In general, you can find professional help through the certifying body. However, if the process seems confusing, there are consultants who can help assess if a green business certification is the right decision and help manage the process.

👉 Each certification has its own unique application process and renewal schedule. Many of the certifying organisations have consultants on staff who can help you make sense of it all.

Below, we’ve rounded up some of the most well-respected and popular third-party green certifications, based on insights from Horton and Yarussi-King. You can use them as a starting point for your green certification search.

Popular Green Business Environmental Certification Options

B Corp Certified
What it certifies: Companies commit to balancing profits and purpose and striving to have a positive impact on employees, communities and the environment.
Granting organisation: B Lab
Type: Nonprofit
Certified businesses: Emma & Toms, BioPak, Patagonia

Rainforest Alliance Certified
What it certifies: Environmental protection and promotion of workers’ rights. The certification applies to products like coffee, chocolate, fruit and paper.
Granting organisation: The Rainforest Alliance
Type: Nonprofit
Certified businesses: Single O

Fairtrade Certification
What it certifies: Ethical trade system where businesses must meet social, environmental and economic criteria.
Granting organisation: Fairtrade
Type: Nonprofit
Certified businesses: Seven Miles Coffee Roasters, J.Crew

LEED (Leadership in Energy and Environmental Design)
What it certifies: Energy efficient and cost-effective green buildings. It measures building performance in areas such as Energy, Water and Waste Efficiency, Transportation and Site Selection, etc.
Granting organisation: U.S. Green Building Council
Type: Nonprofit
Certified businesses: Starbucks, Grand Rapids Art Museum

Green Star
What is certifies: Sustainability of buildings, fitouts and communities through Australia’s largest national, voluntary, holistic rating system – Green Star
Granting organisation: Green Building Council Australia
Type: Nonprofit
Certified businesses: City of Melbourne, Colliers, https://new.gbca.org.au/membership/member-directory/

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The Bottom Line

This is just a sampling of green certifications available — there is no one-size-fits-all approach. Before pursuing any certification, consider the cost and whether you’re prepared to be transparent and continue renewing year after year. And make sure that your market recognises the cert.

“Unless they mean something to the consumer and are government-based or managed by credible organisations without vested financial interests, they might not be worth it,” says Yarussi-King.

Additional Green Business Environmental Certifications

GreenDNA Certificate
What it certifies: Encodes green practices into the DNA of organisations to adopt a low carbon lifestyle and practising responsible consumption and production.
Granting organisation: Singapore Environmental Council
Type: Nonprofit
Certified businesses: TBC

ECO Certification
What it certifies: The ECO Certification program certifies tourism products (tours, accommodations, attractions) with a primary focus on nature.
Granting organisation: ECO Tourism Australia
Type: Nonprofit
Certified businesses: TBC

Green Biz Check
What it certifies: Reviews ‘green’ or ‘sustainable’ standards and assessment frameworks and combines and modifies them to reflect the relevant commercial aspects of the office, retail, food and beverage and IT environment.
Granting organisation: Green Biz Check
Type: Private
Certified businesses: Australian Brands Alliance

Energy Rating
What it certifies: Rates how energy efficient an electrical appliance is.
Granting organisation: Energy Rating
Type: Government
Certified businesses: Electrical appliances can voluntarily display energy efficiency label.

Singapore Green Labelling Scheme (SGLS)
What it certifies: Ethical trade system where businesses must meet social, environmental and economic criteria.
Granting organisation: Singapore Environment Council
Type: Nonprofit
Certified businesses: Kimberly-Clark Professional

Choose Cruelty Free Accreditation
What it certifies: Cosmetics, personal care and household care items that have not been tested on animals.
Granting organisation: Choose Cruelty Free
Type: Nonprofit
Certified businesses: Designer Brands, Earth Choice

GECA Ecolabel Certification
What it certifies: GECA’s ecolabel provides an independent tick that specifies that product and service is better for the environment and reduces the impact on human health.
Granting organisation: Good Environmental Choice Australia (GECA)
Type: Nonprofit
Certified businesses: Jardan Furniture

Green Tick Certified
What it certifies: Promotes products or services that have been independently certified as environmentally sustainable.
Granting organisation: Australian Government/IP Australia
Type: Government
Certified businesses: Intengine

Global Green Tag
What it certifies: Positions a product within the top end of the green product market that improves the ecological and health benefits of their products.
Granting organisation: Global GreenTag International
Type: Private
Certified businesses: Dulux

RSPCA Approved Farming
What it certifies: Products come from farms that focus on animal welfare. Farms must meet the RSPCA's animal welfare standards and are regularly assessed.
Granting organisation: RSPCA
Type: Nonprofit
Certified businesses: Coles