As the demand for sustainability-driven products and corporate accountability accelerates, third-party certifications have emerged as essential tools for de-risking business claims and building trust across value chains. Rather than being viewed as a compliance cost, sustainability certifications by credible bodies offer organizations strategic advantages in market positioning, operational efficiency, access to capital, and building economic value. The real benefits of accredited third-party certifications lie in their ability to provide credibility, manage risk, and enable businesses to scale their sustainability impact with confidence, regardless of regulatory instability.
The challenge and costs of unsubstantiated sustainability claims
Organizations today face increasing pressure to communicate their sustainability initiatives with clarity and accuracy. In a 2025 survey of more than 300 companies across North America, Europe and APAC, 88% viewed sustainability as a driver of long-term value.1 This is reflected in an Edelman Trust Barometer study, which found that 69% of consumers prefer products with third-party sustainability credentials.2
However, “greenhushing”3 — the intentional underreporting of sustainability data — has become more prevalent. The 2024 Transparency Index Report4 indicates that 58% of organizations now underreport sustainability data, citing factors such as regulatory delays and stakeholder skepticism.
The costs associated with unsubstantiated claims are substantial and multifaceted, and can result in reputational damage, legal actions, and operational setbacks. In the recent past, automotive5 and consumer6,7 brands have incurred major financial costs in settlements and penalties due to unsupported environmental claims or regulatory violations.
Beyond direct financial penalties, organizations also risk loss of stakeholder trust and diminished market competitiveness. Not surprisingly, manufacturers, suppliers, brand owners and retailers are increasingly reassessing the foundations of their product sustainability claims, making them more specific, transparent and independently verifiable.
Verifying sustainability claims: Certification as differentiation
In this context, independent certifications provide assurance that sustainability claims are based on accepted, science-based industry standards and benchmarks.
Recently, new or revised rules have come into effect that strengthen existing regulations regarding evidence-based proof of environmental sustainability claims. These include the European Union’s (EU’s) Green Claims Directive, the United Kingdom’s Green Claims Code, and Canada’s updated Competition Act, which now incorporates more rigorous requirements regarding product environmental claims.
In markets with less rigorous regulations, certifications still facilitate reliable sustainability communications, conformity to best practice, and competitive differentiation. Credible certifications give partners and buyers confidence that products meet certain environmental performance criteria.
Beyond compliance, certifications are increasingly seen as indicators of quality, innovation, and trust, enabling procurement decisions based on demonstrated performance rather than unsubstantiated marketing claims. This is reflected in the Edelman Trust Barometer8 study, which found that 69% of consumers prefer products with third-party sustainability credentials.
By prioritizing certified suppliers, procurement teams reduce regulatory and reputational risks while strengthening trust and accountability. This targeted approach drives supply chain resilience and makes responsible partners integral to a sustained competitive advantage.
How to choose sustainability certifications: Core principles
The value of product sustainability claims ultimately depends on the ability to trust the accuracy and validity of those claims. But, the quality of the assessment is built on several factors, including the basis for the evaluation, the rigor of the processes used to evaluate compliance with certification requirements, and the expertise and knowledge of those directly involved in the certification process.
The most effective certifications are built around a small set of core principles:
Independence, credibility and trust
Certifications from accredited third-party organizations help to ensure impartial evaluations from a trusted body. Accreditation further provides assurance that the certification body meets specific standards and that its compliance with those standards is regularly assessed by an accreditation authority. This supports the independence and integrity of the certification process, which is essential in building credibility with stakeholders.
Scientific rigor, transparency and adaptability
Certifications that adhere to internationally accepted sustainability standards and benchmarks support continuous improvement and global harmonization. These provide a uniform and consistent approach for assessing compliance across different geographies and industry sectors, supporting the reliability of the evaluation.
Materiality and scope
A credible sustainability certification addresses the most scientifically significant impacts across the full lifecycle of a product in question. By considering environmental, social, and governance criteria as material, such an approach helps reduce market risks, while rewarding sustainable progress.
Regulations and market recognition
When a certification aligns with the relevant regulations and standards in your industry and region, it further enhances the reliability and market acceptance of sustainability claims.
Emerging practices and challenges to watch
Near-future regulation and market expectations are pushing brands toward much more rigorous approaches to product sustainability claims. At the same time, consumer-facing companies face real pitfalls, including fragmented standards and definitions, lack of harmonized data systems, limited access to verified supply chain data, and the risk of over-promised end-of-life outcomes they cannot control.
Key emerging practices include:
- The EU’s Digital Product Passport (DPP) requirement is setting the stage for product-level digital data transparency, with organizations expected to track and disclose environmental impacts (e.g. recycled content, repairability, carbon footprint, etc.) in a verifiable way.
- Regulators, industry groups, and standards development organizations (SDOs) are moving to standardize claim definitions (like “recycled” or “biodegradable” or “climate neutral”), reducing the ambiguity that has fueled greenwashing.
- Suppliers and manufacturers are also being asked to disclose full life cycle assessment (LCA) data to show science-based impact reductions, rather than over-reliance on offsets. This could add complexity and burden to smaller suppliers
- Third-party verification of end-of-life claims, proving recyclability, compostability, life extensions, etc., in real-life conditions.
- Advanced traceability to validate composition (recycled, bio-based content, substances of concern, etc.).
Conclusion: Sustainability certification as a strategic asset
In competitive markets, independent product-level certification not only strengthens the communication of sustainability impact but also enhances market value and supply chain resilience. By mitigating the risks of greenwashing, certifications differentiate brands, increase stakeholder confidence, and contribute to both operational and financial robustness. Even amid regulatory uncertainty, brand owners and manufacturers gain a strategic advantage by leveraging product sustainability certifications to reinforce market access, unlock new value, and fortify supply chains against future disruptions.
UL Solutions supports organizations, manufacturers and suppliers with their product and enterprise sustainability assurance services, including ECOLOGO Certifications, environmental claim validations, healthy building verification, ESG report assurance, and others.
About the author
Dr. Anastasia ‘Ana’ Behr is a chemical engineer by training and sustainability scientist by practice, driven by the belief that science-informed sustainability is good business. In her role as Senior Director for Sustainability Science and Technology, Dr. Behr combines her training and passions as she works with industry leaders to accelerate circularity and decarbonization strategies across products and value chains.
Sources
- Morgan Stanley. 2025. Morgan Stanley Sustainable Signals: Annual Global Survey of Corporates Finds Sustainability Remains Value Creation Opportunity.
- Edelman. 2023. 2023 Trust Barometer: Navigating a Polarized World.
- Monash University. 2025. Greenhushing: What Is It, and Why Do Companies Do It?
- Connected Impact, 2024, The Transparency Index 2024 | Connected Impact
- Deloitte. 2025. 2025 Global Automotive Consumer Study: Tracking Consumer Trends in the Automotive Industry.
- Reuters. 2023. Guidance for “Sustainable” Claims after Dismissal of H&M “Greenwashing” Class Action.
- U.S. Securities and Exchange Commission. 2024. SEC Charges Keurig with Making Inaccurate Statements Regarding Recyclability of K-Cup Beverage Pod.
- Edelman. 2023. 2023 Trust Barometer: Navigating a Polarized World.
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