Abstract
The Textile Fashion Industry (TFI) is a major contributor to environmental degradation, necessitating urgent action to realign production and consumption with ecological principles. Ecolabels, voluntary self-regulation tools designed to indicate environmentally preferable products, hold significant potential for promoting sustainability. However, their effectiveness is hindered by fragmented standards, transparency issues, and inconsistent lifecycle integration, leading to consumer confusion and greenwashing concerns. This study adopts a systems-based approach to redefine ecolabels as instruments for systemic transformation rather than mere consumer guidance tools. Building on theories of information asymmetry and ecological embeddedness, we develop a conceptual framework to assess ecolabel effectiveness across four key dimensions: standardization of environmental attributes, transparency in verification and certification, lifecycle and value chain consideration, and effective communication strategies. We argue that ecolabels must integrate these dimensions to reduce consumer uncertainty support better value chain management.
Methodologically, we apply this framework to a qualitative study analyzing 155 ecolabels in the UK market, mapping and evaluating 44 relevant ecolabels. Our findings reveal critical gaps in ecolabel design, including the underrepresentation of climate change criteria, inconsistencies in environmental attributes, and a lack of clear verification processes. Notably, many ecolabels emphasise immediate consumer concerns, such as chemical safety, while neglecting systemic challenges like biodiversity loss and carbon emissions. Additionally, third-party verification, while enhancing credibility, is often undermined by opaque ownership structures and vague certification claims, further complicating consumer trust.
Our study highlights the need for ecolabels to move beyond fragmented sustainability claims toward a systems-based approach that aligns with planetary boundaries and regenerative sustainability principles. By incorporating clear lifecycle criteria, improving transparency in governance structures, and tailoring communication strategies for diverse audiences (B2C and B2B), ecolabels can promote systemic industry change.
Theoretically, our research bridges information asymmetry and ecological embeddedness, offering an integrated perspective on ecolabel effectiveness. Practically, it provides actionable recommendations for firms, policymakers, and certifying bodies to enhance ecolabel credibility and impact. Our proposed framework not only advances academic discourse on ecolabel governance but also provide industry stakeholders with a roadmap for aligning ecolabel strategies with global sustainability goals. By addressing key limitations in current ecolabel practices, our study contributes to the broader effort of embedding ecological responsibility into the TFI’s value chain.